Toyota Comments on Reuters Report of Plan to Slash Car Prices 30 Percent

Toyota Motor Corporation has issued a comment to a June 18 Reuters article headlined “Toyota Seeks to Cut Car Prices 30 Percent by 2013.” The article details a Toyota cost-cut plan, called RR-CI, designating 165 parts for overhaul, aimed at reducing the price gap against Korean vehicles.

In its comment, TMC said: “Under our RR-CI (Ryohin = quality, Renka = low price, Cost Innovation) activities, we are working to reduce costs to increase the competitiveness of our vehicles. Specifically, we plan to evaluate the competitiveness of 165 individual components, thoroughly discuss with our suppliers how we can improve costs for each component and set targets. Different targets will be set for different components.”

TMC added, “This does not mean we will reduce the prices of all of our vehicles by 30 percent.  Although features and specifications of our vehicles are different, globally they are about 30 percent more expensive than those made by Korean manufacturers. So, to increase the competitiveness of our vehicles, we are working to reduce costs through our RR-CI activities. This is a cost-reduction effort only and has no direct connection to any vehicle prices.”

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