Toyota has revealed, today (21.11.08), that it will axe 3,000 factory jobs in Japan due to the severe decline in demand and the recession the world economy is struggling to cope with. It will also cut jobs in the U.S and scale down its operations in Thailand as well as elsewhere.
Other Japanese automakers such as Nissan, Mazda and Isuzu have also all announced that they will do the same. The company, amongst many other mammoth rivals globally, has experienced solid growth for over sixteen years, however, now, because times have changed, the right decisions need to be made in order to cope with the current financial situation facing global auto industries and markets. One could argue that during these growth years, Toyota was overproducing cars.
With consumers putting their car purchasing decisions on hold, downsizing and cutting costs for these auto makers has become an important, practical and logical necessity, taking into account the scope of the situation and the future livelihood of these conglomerates. Selling off stakes or factories/plants to keep a healthier cash flow is also another option. There are no immediate or easy solutions, however, making the most logical and sensible financial decisions and exercising sound economic policies are imperative in order to avoid failure and rise above the crunch. However, with all said, for consumers, it remains the best time to actually buy cars as carmakers and dealers start slashing prices to spur on demand and move inventory, that’s if you have the money. Brighter horizons are on the way though and I think Toyota will learn from this experience and come out stronger.
With consumers putting their car purchasing decisions on hold, downsizing and cutting costs for these auto makers has become an important, practical and logical necessity, taking into account the scope of the situation and the future livelihood of these conglomerates. Selling off stakes or factories/plants to keep a healthier cash flow is also another option. There are no immediate or easy solutions, however, making the most logical and sensible financial decisions and exercising sound economic policies are imperative in order to avoid failure and rise above the crunch. However, with all said, for consumers, it remains the best time to actually buy cars as carmakers and dealers start slashing prices to spur on demand and move inventory, that’s if you have the money. Brighter horizons are on the way though and I think Toyota will learn from this experience and come out stronger.
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