Thursday June 25, 11:41 AM
Toyota's new president pledges fresh start
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TOKYO (AFP) - Toyota Motor (Frankfurt: 853510 - news) 's new president Akio Toyoda, the grandson of its founder, on Thursday vowed a fresh start for the troubled automaker and said he aimed to avoid a third straight year of losses.
"We must start again from the very bottom," Toyoda, 53, told a news conference after he took the helm of the world's largest automaker earlier this week in the midst of its biggest ever crisis.
"The new management feels like we are setting sail during a storm. We want to return to profit as quickly as possible. I would like to avoid making a loss for three consecutive years and I will do my best to do so," he said.
Toyota fell into the red for the first time in nearly 70 years in the year to March with a net loss of 436.9 billion yen (4.6 billion dollars). It expects an even bigger shortfall of 550 billion yen this year.
Toyoda said he would cut his own pay by 30 percent for one year from July to aid the company's recovery.
He acknowledged that the company may have overstretched itself in recent years with its brisk expansion overseas.
"In some areas, we need to take a step backwards," he said, without elaborating.
"We need to run the company focusing on products, meeting the needs of regional markets. Just as roads and highways are different, customers around the world have different needs and tastes," he added.
Toyota is the first member of the founding family in 14 years to take the helm of the company, and he does so at a crucial time.
Toyota actively expanded its global production facilities in recent years to meet strong demand, particularly for its fuel-efficient cars, leaving it vulnerable to the current collapse in worldwide sales.
The Japanese company has idled plants and slashed thousands of temporary jobs in response to the slump in demand.
Some industry analysts think it will need to take even more drastic action to recover from its financial difficulties, possibly shedding regular workers.
The company plans to expand its line up of fuel-sipping hybrid cars and cut costs as part of efforts to return to profit.
Toyota's new president is the grandson of Kiichiro Toyoda -- who founded the automaker in 1937 -- and the son of former president Shoichiro Toyoda.
Analysts say the founding family scion may find it easier to unite the company during its current crisis.
But Toyoda played down the importance of the family name, saying that whoever is in the driving seat, "the job is going to be extremely tough."
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