Toyota reports record loss

Japanese car maker registers record loss after last year’s whopping profit.

Katsuaki Watanabe, Toyota
Katsuaki Watanabe said the loss was a result of reduced sales in the US and Europe [AFP]

The world’s biggest automaker also said that net losses would deepen to 550 billion yen for the fiscal year through March 2010.

Toyota has cut thousands of temporary jobs in response to the financial crisis, and its president said more cost cutting measures would be introduced to help the company return to  profit.

Robert Wiseman, professor of business at Michigan State University, said Toyota should emerge in good shape in the long run.

“I would expect all global car manufactures to report a loss this fiscal year since car sales are way down,” he told the Associated Press.

“What Toyota can do as it waits for the economy to turn around is invest in the next generation of vehicles and work on improving quality control in its production facilities,” he said.

Source: News Agencies