Toyota to Cut Dealer Network in Japan

The recession made cutting costs a necessity, so we’re so used to cutbacks that nothing moves us any more. Most people have friends or family that are currently unemployed, so we’ve stopped feeling sorry for strangers that get fired every day.

Unfortunately, Toyota is obligated to cut costs again. And according to Kyodo news agency, they are planning to close 300 dealerships across Japan over the next three months. The reason is simple: the demand in the domestic market is seriously shrinking, and that you can see in all the company’s figures made public over the last year or so.

Kyodo news agency also said that the decision on which dealers will shut down will be made in a logical way, based on the sales numbers and on the local-area’s demand. So Toyota decided to support the effort of about 290 sales companies to consolidate or close their outlets, which currently have reached a number of 4,900 throughout Japan, says Kyodo.

Dealers located in populated areas have another advantages, as Toyota will not close those facilities due to its obligation to provide vehicle repairs and maintenance. It’s true that people still need parts and labor for their vehicles and that might just get enough money to get through the rough time.

It seems that Toyota’s financial problems are far from being over, as this year they reported serious losses. Furthermore, their title of world’s biggest car manufacturer is threatened by German automaker Volkswagen.