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Toyota to Review Entire Product Lineup

The Associated Press

TOKYO -- Toyota's(TM Quote) new president said the automaker's entire product lineup will be reviewed to better focus its offerings to each global region.

Akio Toyoda, grandson of the founder of Toyota, said Thursday he will put customers and the rank-and-file first to steer the automaker out of its worst crisis since it was founded.

At his first news conference since being confirmed as president Tuesday, Toyoda said each of his executive vice presidents will oversee a global region -- North America, Europe, Japan and emerging markets -- to be more nimble and answer consumer needs.

Toyota will focus on some auto sectors while pulling out of others, depending on the region, he said. He didn't give details although he said hybrid technology was an example of a Toyota strength.

He also warned the the auto industry faces another two tough years as he outlined his strategy to return the company to profit, according to a Reuters report.

Facing a second year of record losses, Toyota aims to cut costs further so it can be profitable using just 70% of its factory capacity.

"We want to do everything possible to avoid a third consecutive year of losses," Toyoda told reporters, Reuters says.

Meanwhile, Toyota, the world's biggest carmaker, said Thursday its worldwide output in May dropped 38.8% from a year earlier to 442,621 vehicles, its 10th straight monthly decline.

Among key regions, Toyota's production in the United States plunged 48.2% to around 56,000. Toyota operates five auto plants in the U.S. In Japan, Toyota made 192,637 vehicles, down 41.9% year-on-year.

Toyota lost 436.9 billion yen ($4.6 billion) during the fiscal year through March, its worst loss since it was founded in 1937. It expects an even wider loss this year.

Honda(HMC Quote), Japan's No. 2 automaker, said its global production continued to tank in May. Honda made 195,085 vehicles worldwide, down 38.4%.

To cope with plummeting demand, Honda halted auto production in Europe from February to May. But Honda said it is resuming production at its plant in Swindon, in southern England, Honda's only vehicle factory in Europe.

Nissan(NSANY Quote) said the pace of decline in global production moderated in May. The Japanese carmaker, allied with Renault of France, made 201,340 vehicles worldwide, down 27% from a year earlier.