'We are taking a hard look at all of the segments that we compete in to make sure we are competing in profitable segments and that products we sell have strategic value' – Jim Lentz, Toyota North America CEO.
Toyota North America could streamline its line-up due to 'plateauing demand', according to a new report.
Industry journal Automotive News spoke with the company's regional CEO, Jim Lentz, who said the Japanese brand is "taking a hard look" at all model lines and segments to ensure its offerings "have strategic value".
The US is Toyota's largest market, and Lentz's comments come after the company reported an 11 per cent increase in operating profit in the latest fiscal quarter to 579.1 billion yen ($7.05b).
Lentz added the company will revise its US incentive strategy, focusing more heavily on growing segments.
"We're putting dollars where we're going to get the most bang for our buck," Lentz told the publication.
"Most importantly today is incentivizing vehicles that are much more profitable."
The company's American boss confirmed Toyota won't be abandoning passenger cars (like Ford, for example), but it will be 'scrutinising offerings in some areas' like sports cars – could this spell the end of the 86 and Supra in the US?
Toyota's American brand incentives for passenger cars dropped 16 per cent through September, while its spending on light trucks increased by 8.0 per cent according to US statistics firm, Autodata.
The brand's North American wholesale deliveries also fell by 1.0 percent during the July-September period, though operating profit in the region rose 12 per cent.
It's not the first time we've heard of a car brand reshuffling its North American line-up either, Ford has announced it will only sell SUVs and pickup trucks from 2020 (bar the Mustang sports car) while Fiat Chrysler Automobiles (FCA) is also set to reshuffle its American offerings due to the dominance of crossovers and pickups in the region.