Toyota to slash-down Car prices by 30% soon

Toyota Motors, the world's largest car maker, said that it plans to adopt a new cost-cutting strategy to bring down the price of its cars by as much as 30% by year 2013. The new strategy will enable the company to compete promptly against its global rivals like Hyundai, as per a statement given by a senior executive of the company. The Japanese auto giant is facing fierce competition from rapidly growing major auto makers of the world including Germany based Volkswagen and Korea based Hyundai.



The emerging markets like India and China have become a battle ground for these automakers as each one of them is hunting for new ways to slash-down the manufacturing cost of their respective vehicles. In comparison to the Korean cars, Toyota vehicles are roughly 30 percent more expensive globally, said Mr Takeshi Shirane, senior managing director in charge of purchasing, in an interview given to a leading news agency.

The company is all set to adopt a new scheme, called as RR-CI which stands for "ryohin" (quality) "renka" (low price), and cost innovation. In this scheme, Toyota will task its manufacturing staff (engineers and purchasing staff) to work-out the best way to design the 165 designated components, along with setting-up a unique cost-reduction target for each one of the parts.

According to Mr Shirane, reducing the cost by 30% is very tough task to achieve, but he hopes that the company would have come-up with the best methods to design and produce each of the 165 parts by end of the year 2010.

Source:- Toyota to slash-down Car prices by 30% soon - New Cars