Toyota's New U.S. Plan: Trim Trucks, Add Hybrids

Washington DC November 2, 2009; The AIADA newsletter reported that according to Automotive News, Toyota President Akio Toyoda is rewriting his U.S. playbook to revive battered sales and a tattered image.

The new strategy: review and possibly trim the lineup of full-frame trucks; skip mid-cycle vehicle enhancements to focus on bigger launches; introduce more hybrids to North America; and give U.S. engineers a bigger voice in research and development.

Executives who described the plan say the goal is to make a bigger splash with model launches and tailor cars to American demand. The moves come as the world's top automaker swung from its biggest profit to its deepest loss in just one year.

The United States – long Toyota's biggest and most profitable market – is a key weakness. Toyota's sales were down 28 percent through September, worse than the market's 27 percent fall.

The first-quarter operating loss in North America was the company's fourth straight quarterly loss there. Toyota's full-frame truck lineup is being reviewed and may likely be trimmed because of the shrinking market for big vehicles that use a lot of fuel.

Meanwhile, look for more gasoline-electric hybrids. The company will also drop minor model changes and make a bigger deal of model changes when they do occur. Click here for more on Toyota’s plan to revive sagging North American sales.(Editors note: Just like American car makers used to do. Thanks Harl... Earl)