Toyota posts larger than expected losses

Toyota Motor Corp. has increased its predicted operating losses for 2008 from a previous forecast of ¥150 billion (US$1.63 billion) to ¥450 billion (US$4.90 billion). To reduce expenses, the automaker has cut employee wages by 20% on furlough days, while overseas “it could introduce job sharing,” Executive Vice President Mitsuo Kinoshita said. It has also been reviewing designs of its 55 existing models together with car parts makers, looking for ways to minimize production costs. To improve competitiveness over the medium to long term, its 74 production lines throughout the world will be trimmed, especially in Japan, the United States and Europe. (February 7, 2009)