Toyota Tells Managers to Buy One of Its Own Cars
Car maker hopes move will boost morale as sales are hit by downturn
More than 2,000 managers at Toyota have been "encouraged" to buy one of the firm's cars in an attempt to boost morale, as Japan's biggest car maker braces itself for its first operating loss in more than 70 years.
The company said its 2,200 general managers had agreed to the unprecedented move at informal meetings last month, and insisted they would not be coerced into buying Toyota cars or punished if they failed to do so.
"This is not company policy and in no way mandatory, but more of a form of unofficial encouragement," Toyota spokeswoman Ririko Takeuchi told the Guardian.
While it did not keep data on vehicle ownership among employees, the firm admitted that a number of middle managers owned cars made by Toyota's rivals. "It's entirely a matter of personal taste," Takeuchi said.
Managers who take up the offer will receive a "modest" discount if they buy directly from Toyota, but the range of models is limited. They will have more choice if they opt to buy from a dealer, but will pay the same as other customers.
Even if every manager heeds the latest call to arms, it is unlikely to make much of a dent in Toyota's inventory. Faced with a soaring yen and a collapse in the export market, Toyota is laying off 3,000 temporary workers and closing all 12 of its domestic plants for 11 days in February and March, reducing production by as many as 200,000 vehicles.
Toyota expects to have sold 8.96 million cars worldwide last year, down 4% from 2007 and well below its initial estimate of 9.5 million. Sales in the US dropped 37% in November, the biggest monthly decline for more than 25 years, and by 18% in Japan.
The firm is facing an operating loss ? the first since 1938 ? of 150bn yen (?1.1bn) to the end of March, compared with a 2.27tn yen profit last year.
Confidence among car makers was shaken again this week with reports that General Motors and Chrysler will not attend October's Tokyo Motor Show, one of the biggest events in the industry's calendar. The firms failed to register by the December deadline, but organisers denied claims that the show would be canceled.
The company said its 2,200 general managers had agreed to the unprecedented move at informal meetings last month, and insisted they would not be coerced into buying Toyota cars or punished if they failed to do so.
"This is not company policy and in no way mandatory, but more of a form of unofficial encouragement," Toyota spokeswoman Ririko Takeuchi told the Guardian.
While it did not keep data on vehicle ownership among employees, the firm admitted that a number of middle managers owned cars made by Toyota's rivals. "It's entirely a matter of personal taste," Takeuchi said.
Managers who take up the offer will receive a "modest" discount if they buy directly from Toyota, but the range of models is limited. They will have more choice if they opt to buy from a dealer, but will pay the same as other customers.
Even if every manager heeds the latest call to arms, it is unlikely to make much of a dent in Toyota's inventory. Faced with a soaring yen and a collapse in the export market, Toyota is laying off 3,000 temporary workers and closing all 12 of its domestic plants for 11 days in February and March, reducing production by as many as 200,000 vehicles.
Toyota expects to have sold 8.96 million cars worldwide last year, down 4% from 2007 and well below its initial estimate of 9.5 million. Sales in the US dropped 37% in November, the biggest monthly decline for more than 25 years, and by 18% in Japan.
The firm is facing an operating loss ? the first since 1938 ? of 150bn yen (?1.1bn) to the end of March, compared with a 2.27tn yen profit last year.
Confidence among car makers was shaken again this week with reports that General Motors and Chrysler will not attend October's Tokyo Motor Show, one of the biggest events in the industry's calendar. The firms failed to register by the December deadline, but organisers denied claims that the show would be canceled.
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