Toyota Motor Corp. President Kenta Konexpressed his commitment to listening carefully to the challenges faced by those on the front lines of development and other operations, saying there is still plenty of room for the company to improve its "earning power."
Speaking in a group interview, Kon outlined a policy of prioritizing front-line work, such as production, development and sales, to boost the company's earning strength. "There is still plenty of room for improvement," Kon said, citing the need to review the types of parts used and cut costs, among other things.
Kon, who has a background in accounting, pointed to the importance of reducing the distance between the head office and the front lines. What needs to be done now by accounting staff and others, he said, is "to visit suppliers and prototype production sites and personally make efforts to bring down costs."
He also said that the company "wants to maintain the current level" of domestic automobile production, which currently stands at about 3 million units per year. He said that the philosophy of "local production for local consumption" -- manufacturing products near where they are to be sold -- is extremely important but emphasized commitment to preserving Japan's manufacturing capabilities and parts supply chain.
Kon spoke about the break-even threshold for the company's products, the point when revenue for a unit matches the cost of making it. "It's not a matter of lowering it blindly, but we'd like to slightly reduce it since it's currently somewhat high," he said.
On the topic of expanding the business beyond the automotive sector, such as producing flying cars and robots, Kon said, "There is no clear answer as to what 'mobility' is even within Toyota. Personally, I want to focus on 'human mobility.'"
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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July 21, 2026 09:46 ET (13:46 GMT)
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