Toyota, Massive Restructuring
Forty percent of the company’s senior managers will be replaced worldwide. The tough measures to be taken next month can largely be attributed to the first financial loss posted by the manufacturer for fiscal year 2008. In all, Toyota reported an operating loss of 461.0 billion yen ($4.74 billion).
Toyota plans a major restructuring of its North American operations as well. Yoshi Inaba, a former company senior executive, will be called back from retirement to take charge of the North American branch.
Rumors said from some time that Toyota is planning restructuring for all of its manufacturing, financial and sales divisions in the US and appoint Inaba as head of all of these three units.
What the effects of these moves will be remain to be seen. The Japanese manufacturer has no big hopes for 2009, as it expects losses perhaps even greater than the ones brought by 2008. With forecasts showing a drop of some 1 million units sold for the current year, the operating loss is expected to stand at around $8 billion.
"Of course the external environment doesn't help, but we were lacking in the scope and speed of dealing with various problems and issues, and for that I am sorry," Katsuaki Watanabe, Toyota’s president said upon announcing the results.
The new management, including Akio Toyoda as president, will be announced at the annual shareholders' meeting on June 23.