Toyota's earnings improvement plans for development, procurement and production
Expects consolidated operating income of one-trillion yen in FY2012
Reported below is a summary of Toyota's earnings structure improvement plans, such as the introduction of the Toyota New Global Architecture (TNGA) aimed at increasing the efficiency of development and parts sharing, and the introduction of simple and also versatile equipment aimed at reducing capital investment. Toyota is determined to recover profitability through continued improvement efforts while keeping the current domestic production of 3 million vehicles a year and innovating production technologies originating in Japan.
Toyota declared that the year 2012 will be a year of significant changes to its products, saying it sees the cycle starting for continuous market launch of "better" cars.
Toyota ended FY2011 with consolidated net revenues of 18,583.7 billion yen, down 2.2 percent, and a consolidated operating income of 355.6 billion yen, down 24.1 percent year-on-year, respectively. According to Toyota, the company is moving ahead with its earnings structure improvement plans but the FY2011 ended with only modest results as the plans were badly affected by two natural disasters and the unexpected appreciation of the yen. Although the exchange rate will remain virtually unchanged for FY2012 from the previous year (exchange rate's influence on the profit is zero), the company expects to end the FY2012 with a consolidated operating income of 1 trillion yen as a result of a sales increase and cost reduction efforts.
In terms of unconsolidated results containing direct impact of exchange losses from exports, Toyota reported a loss of over 400 billion yen consecutively in FY2010 and FY2011. Nevertheless, Toyota expects the loss to shrink to 70 billion yen in FY2012. Toyota hopes to bring the unconsolidated operating loss and income to the breakeven level as quickly as possible.
With regard to overseas operations, Toyota is expediting local production of vehicles and powertrains, especially in North America and Asia (see a related report shown below). On May 25, 2012, Toyota announced company plans to launch eight small cars designed for emerging countries, based on the "Etios" originally launched in India, in more than a hundred countries around the world and sell more than a million units of them a year by 2015.
Related report: Toyota's overseas operations (May 2012)
Introducing Toyota New Global Architecture (TNGA)
In April 2011, Toyota announced it had introduced a new development framework called the Toyota New Global Architecture (TNGA), a new initiative to fulfill its commitment to making ever-better cars, which will help achieve greater product appeal while reducing costs at the same time.
Conventionally, Toyota's development groups are concerned about specific vehicle models and geographical regions under the principle of "developing the right cars in the right markets." The inevitable outcome is the ever-continuing increase in development costs and part count.
To initiate the TNGA, Toyota will develop three platforms for each segment of the front-wheel drive vehicles. Models using these platforms will account for about half of Toyota's total vehicle production. Several models being built on the same platform will be developed in a grouped development projects to enable parts sharing and allocate remaining manpower and funds to improve product appeal. The company plans to pursue parts sharing and product appeal enhancement simultaneously.
Introducing the Toyota New Global Architecture (TNGA)
|Objective||Increase the efficiency of development with regard to manpower and lead time by 30 percent compared to 2009, and allocate manpower and funds unused after TNGA introduction to improve product appeal.|
|Developing three platforms||Start with three front-wheel drive platforms for the Vitz, Prius and Camry class vehicles. Models using these platforms will account for about half of Toyota's total vehicle production.|
|Develop new platforms that pursue not only the three key functions of moving, turning and stopping but also ideal human engineering, such as driving positions, and greater freedom of design. The new platforms are to be shared across geographical regions to efficiently develop cars of high basic performance.|
|Grouped development||Conventionally, the chief engineer (CE) that leads a development project is responsible for a specific vehicle model and is removed from that responsibility as soon as the project with that model comes to an end. With the TNGA, the CE will now remain on duty through the course of development of vehicle models based on a specific platform.|
|The key parts and units (consisting of several parts to create a specific function) will be shared across vehicle models that use the same platform. The car's interior and exterior will be developed separately to suit the preferences of specific markets to offer distinctive product appeal.|
|Regional needs and wants||Three regional general managers are appointed in the Product Planning Group for 1) North America and China, 2) Japan and Europe, and 3) emerging countries. They will coordinate with the regional marketing units and R&D sites to optimize Toyota's offerings in the respective regions (responsibility for vehicle development will be allocated to the CE and responsibility for collating customer needs and wants to regional general managers). Development for the Lexus brand will be promoted based on its unified global branding.|
|New model launch||The new vehicles developed under TNGA will reach markets in 2014-2015.|
Source: Toyota press release 2012.4.9, Nihon Keizai Newspaper 2012.4.10 (Note) According to Toyota, the "Etios-based small cars for emerging countries" announced on May 25, 2012, are in line with the concept of TNGA and producing a million units of them using the same platform is a challenge that no others have done before. The interior finish and design will be developed to suit local tastes.
Parts costs reduced by 30 to 40 percent through parts sharing
Toyota receives supplies of 4,000 to 5,000 different parts from its tier 1 suppliers and about half of them will be shared across models. This will be done by integrating parts designing and procurement activities. The company plans to reduce part-making equipment investment in half within four years and achieve a 30 to 40 percent reduction in the part manufacturing cost.
For instance, Denso announced that it has developed the Global Standard Radiator (GSR) that can be manufactured anywhere in the world. According to Toyota, the GSR allows it to reduce the number of radiator types that it uses in different regions in the world from 100 to only 21.
Investment in machining equipment halved by parts sharing
|Parts sharing||TNGA is unique in that parts development begins after deciding how they are to be shared across several vehicle models. Toyota orders 4,000 to 5,000 different parts from its tier 1 suppliers and about half of them will be shared. Parts sharing will begin with the vehicle models that use the same platforms. The next step will be sharing parts across different platforms.|
|Sharing will start primarily with such parts that have the least impact on design and finish.|
|Order quantities||Sharing will allow Toyota to increase an order quantity of a specific part and help its parts suppliers in their cost reduction efforts. This will lead to a 30 to 40 percent reduction in the parts procurement cost.|
|Parts to be shared will be ordered for in a single order across vehicle models, regions and launch schedules. Parts are conventionally ordered for say half a million vehicles a year at a time. With TNGA, an order quantity could go up for more than a million vehicles a year. Toyota plans to order as many parts at a time as practical to become more cost competitive than VW or Hyundai.|
|Investment in machining equipment halved||Conventionally, Toyota had to prepare process equipment for specific vehicle models. With TNGA, Toyota will promote parts sharing and reduce the number of process equipment types to minimize the fixed cost of manufacturing. In this way, Toyota will reduce its investment in parts production equipment by half within four years.|
|Source: Denso press release 2012.1.26, Nihon Keizai Newspaper 2011.11.24/2012.3.2|
|(Notes) 1.||In January 2012, Denso announced the company had developed the "Global Standard Radiator (GSR)," a new 40 percent smaller and lighter radiator having the width reduced from 27mm to 16mm, which is now used in the new Lexus GS (and also in the Toyota 86). The performance of a radiator is determined by its fins and tubes. Denso managed to increase the fin's heat radiation efficiency by 10 percent and reduce the product size. The radiator material has been selected carefully taking global availability into consideration.|
|2.||Denso will also commercialize a 27mm wide type, which is thinner than the conventional model of the 36mm type, and the 11.5mm wide type which is thinner than the conventional 16mm model, to offer a wider range of the new radiator series for a greater range of vehicle models.|
|3.||Denso's radiators will come in three widths as before but the number of radiator types will be reduced from 100 to 21 after making the necessary adjustments with the vehicle model design. According to Denso, adjustments are easier than before as the product width was compressed to create extra space.|
Toyota Motor East Japan, Inc. established in July 2012 for centralized production of small cars
Three of Toyota's group companies, namely Central Motor Co., Kanto Auto Works Ltd. and Toyota Motor Tohoku Corp., will merge in July 2012 to form a new company, Toyota Motor East Japan Inc. (there will be three assembly plants: Central Motor's Miyagi plant, and Kanto Auto Works' Iwate and Higashifuji plants).
In the fall of 2011, production of the B platform-based Aqua began at Kanto Auto Works' Iwate plant. In May 2012, the new Corolla, smaller in size than the previous model, developed exclusively for the Japanese market and also based on B-platform, rolled off at Central Motor's Miyagi plant. Toyota regards the Tohoku (northeastern) area of Japan as its third production site dedicated to compact cars benefiting from cost advantages resulting from increased parts sharing.
Toyota plans to produce approximately 500,000 vehicles in the Tohoku area in FY2012 (370,000 units at Iwate plant, 130,000 units at Miyagi plant). In January 2012, Toyota established the "Local procurement promotion center in Tohoku" within Central Motor to raise the local content in this part of Japan from 40 to 80 percent as in the Chubu area (central part of Japan) and increase cost competitiveness.
Construction work on a new engine plant started in Miyagi Prefecture at the end of 2011 with an initial capacity of 100,000 units a year. The key engine components will be procured locally in the Tohoku area in the future.
Introducing new production technology to reduce capital investment by 40 percent
Toyota invested heavily for a few years after 2002 when the company increased production quantities very rapidly. This caused an increase in fixed costs and the company could not cope with the sharp decline of demand triggered by the financial crisis in the fall of 2008. Having learned a hard lesson, Toyota now plans to revamp its plants with simple but versatile facilities that will generate the same result with 40 percent less spending compared to the pre-Lehman crisis in 2008.
Toyota is introducing such equipment first in its assembly plants and engine plants in Japan and then in plants overseas. While Toyota will transfer new technologies to overseas plants in phases, the company will develop new production technologies in Japan to stay at the cutting edge of automotive manufacturing.
Making a large quantity of products with low cost is everybody's concern. Toyota is pursuing technology for making a small number of products with low cost as well to stay competitive at all times.
State-of-the-art facilities introduced in Central Motor's Miyagi plant
|(1) Process and material were reviewed in the painting line. The two-step painting and drying process was changed to a single-step process which reduces the line length by 25 percent. (2)In the engine and chassis assembly process, a production line consisting of dollies, which are set up sideways and transfer cars on it, has been introduced. This increases work efficiency and reduces the line length by 35 percent. (3) The hanging system from the ceiling in the final assembly line was replaced by a dolly transport system. This allows the number of dollies and the production line length to be changed freely according to the production volume. (4) These changes have resulted in a 40 percent reduction in the initial investment.|
(Note) The new Miyagi plant began operations in January 2011. A high-efficiency production line has been introduced in the second plant in India that began production in the fall of 2010, the Mississippi plant in the United States (fall of 2011) and the new Changchun plant in China (May 2012). It is also to be introduced in the Brazilian plant that will begin operations in the second half of 2012.
High-mix low-volume engine production lines introduced in engine plants in Japan and overseas
|A new production line was introduced in Toyota's Shimoyama plant (Aichi Prefecture). The new line started production toward the end of 2010 with an annual capacity of 100,000 units, only half the conventional standards, with having less imapct on profitability. Jigs and tools have been reviewed and modified to shorten the setup time between production models and meet demand fluctuation more flexibly. Toyota is also developing a production line with an annual capacity halved to 50,000 units.|
|Source: Toyota press release 2011.11.9|
|(Note) The new engine production line of high investment efficiency will be deployed in new engine plants in Japan and overseas.|
|-1.||The new engine plant being built in Miyagi Prefecture will have an annual capacity of 100,000 engines with an initial investment of approximately 2 billion yen. The engines will be used in the compact cars to be produced at Kanto Auto Work's Iwate plant and Central Motor's Miyagi plant.|
|-2.||The line was introduced in GAC Toyota Engine plant in China that started production of the AR engines (four-cylinder 2.5-liter, 2.7-liter and 2.5-liter hybrid engines) in October 2011.|
The year 2012 declared to be the year of significant changes to products, including more HV offerings
In announcing the financial results for FY2011, Toyota President expressed that a cycle has been put into practice of "producing better cars, which should increase sales and profits to invest in developing even better cars." He declared that 2012 would be "the year of significant changes to products" reflecting experiences during the three preceding years (of his presidency). As declared, Toyota is launching new, influential models in succession.
The compact hybrid car, the Aqua, already has 120,000 orders in just a month after its launch at the end of December 2011. The car is introduced as "the compact car that will set a future standard for the next ten years." Overseas, the Aqua is marketed under the model name of Prius c. The Aqua's HV system will be used in the Yaris (Vitz in Japan) and the Yaris HV will be launched in Europe in mid-2012. Toyota intends to make the full-hybrid system available with all models that are sold in Europe.
Toyota says the company has not changed its policy to make hybrid versions available with all hot-selling models whether in Europe or elsewhere. During FY2011, Toyota sold 456,810 hybrid cars in Japan (33.0 percent year-on-year increase) and a total of 797,720 units in the world including Japan (an increase of 19.8 percent). Toyota's hybrid models in Japan account for 33.2 percent of all light vehicles (other than mini-vehicles) that the company sold in the country in FY2011 (as compared to 40.9 percent of Honda hybrids).
Planning a steady sale of 1.5 million cars in Japan (Toyota & Lexus brand)
Toyota has sold 1.3 million vehicles in Japan and exported 1.7 million vehicles a year in the past few years. As a way to ease the impact of the yen's high appreciation, Toyota is considering changing the domestic sale and export balance to 1.5 million units and 1.5 million units. Toyota has set its goal for domestic sale in FY2012 at 1.63 million units in consideration of the tax credit and other purchase incentives that have been reintroduced. However, Toyota will lower the bar to 1.5 million vehicles in 2013 and thereafter in light of stability.
Toyota admits the only way to cope with the yen's super-high appreciation would be to produce cars in Japan and sell them locally. Consequently, Toyota has asked its dealers in Japan to expand sales saying "expanding domestic demand is important to keep automotive manufacturing going in Japan."
Toyota plans to raise its domestic market share (other than mini-vehicles) from 45.5 percent in FY2011 to around 48 percent in FY2012.
Main new model launches in 2011-2012
|Prius α||May 2011 (Japan)||A wagon version of the Prius, available in 5-seat 2-row and 7-seat 3-row types. The 3-row type is fitted with Toyota's first lithium-ion battery. The car represents high fuel efficiency (31.0km/liter in 10-15 mode for both types) and cabin roominess.|
|New Camry||August 2011 (US)||The new Camry fitted with the 2.5-liter inline 4-cylinder engine, the 3.5-liter V6 engine and the 2.5-liter hybrid system were first released for sale in the United States. All three types represent improvement in fuel economy. The hybrid version in particular represents more than 30 percent improvement in city drive mode fuel economy (at 43mpg). The sales goal for 2012MY in the United States is set at 360,000 units.|
|September 2011 (Japan)||Only the hybrid version (fitted with the 2.5-liter engine) is sold in Japan to explore a new market for hybrid cars that give an upscale impression. The new Camry gives high fuel economy that normally belongs to compact cars at 23.4km/liter in JC08 and 26.5km/liter in 10-15 modes. The car also delivers dynamic performances normally available from 3-liter gasoline-fueled cars.|
|Aqua||December 2011 (Japan)||This hybrid car smaller in size than the Prius is fitted with a 1.5-liter hybrid system that gives fuel economy of 35.4km/liter in JC08 and 40.0km/liter in 10-15 modes. The entry model is sold for 1.69 million yen. Monthly sales target in Japan is set at 12,000 units. Produced at Kanto Auto Work's Iwate plant. The car had approximately 120,000 orders by January 31, 2012, about a month after its market launch.|
|Prius PHV||January 2012 (Japan)||The car, released for sale to general consumers at the end of January, has an EV mode cruising range of 26.4km. Toyota plans to sell 35,000 to 40,000 units a year in Japan, and a total of 60,000 units in the world including Japan. The car is produced at Toyota's Tsutsumi plant.|
|The Prius PHV, released for lease to corporate customers in December 2009, is fitted with a 5.2kWh capacity lithium-ion battery and leased for approximately 5 million yen. The same car released for sale to general consumers has a battery capacity of 4.4kWh to reduce costs and lower the starting price to 3.2 million yen.|
|New Lexus GS||January 2012 (Japan)||The GS350 and GS450h were fully-remodeled in January and March, respectively, and the GS250 fitted with the 2500cc engine was made available. The hybrid model is equipped with the 3.5-liter V6 engine and the HV system. It delivers acceleration performances normally expected from a V8 engine-powered car and gives JC08 mode fuel efficiency of 18.2km/liter. The new Lexus GS are produced at Toyota's Tahara plant with a targeted monthly domestic sale of 600 units.|
|Small FR Sport 86||April 2012 (Japan)||Designed under the concept of a "unique rear-wheel-drive vehicle with intuitive handling" that embodies the essence of driving enjoyment. The 86 features the world's first horizontally-opposed D-4S power unit (direct injection + port injection). The monthly sale is targeted at 1,000 units.|
|New Lexus ES||April 2012 (US)||The new (sixth generation) Lexus ES350 and the ES300h, a hybrid model made newly available (fitted with a 2.5-liter engine and EPA combined mileage of 40mpg) were exhibited at the New York International Auto Show held in April 2012. They were released for sale then. The Lexus ES are the best-selling models among the Lexus-brand cars in the United States.|
|New Corolla (Japan-only)||May 2012 (Japan)||The 11th-generation Corolla sold in Japan exclusively is built on the B platform. This is the first downsized Corolla compared to the previous model in its history (the overall length has been reduced by 50mm on the Axio sedan model and 60mm on the Fielder wagon model) while increasing the knee space for the rear-seat occupants by 40mm. The Axio is powered by a 1.5-liter and a 1.3-liter engine (1.8-liter engine was discontinued and replaced by the 1.3-liter engine). The Fielder is powered by a 1.8-liter and a 1.5-liter engine. The monthly sales target is set at 3,000 units for the Axio and 4,000 units for the Fielder.|
|Yaris HV||Mid-2012 (Europe)||The HV system used in the Aqua will be used in the Yaris to be sold in Europe. Production of the Yaris Hybrid started in April 2012 at a plant in France. The first B-segment full-hybrid vehicle in Europe. Toyota will extend the market to areas outside Europe depending on needs.|
|Small car||July 2012 (Japan)||A small car that will succeed to the Porte and the Raum.|
|iQ-based EV||Latter half of 2012||Production will start in August 2012 at Toyota's Takaoka plant for the limited lease of 600 units in Japan, the United States and Europe toward the end of 2012. The battery volume will be reduced to lower the price as much as possible, keeping the cruising range at around 100km.|
|New Avalon||Fall 2012 (US)||The new Avalon will be the first model developed under the leadership of the American development team. It was exhibited at the New York International Auto Show in April 2012.|
Source: Toyota press releases 2011.9.5/2011.12.26/2012.1.26/2012.2.2./2012.3.6/2012.5.11 (Note) In addition to those mentioned above, Toyota is expected to renew the Auris and the RAV4 before the end of 2012.
Introducing small cars in emerging countries with a price tag of around 1 million yen with plans to sell 1 million units in a hundred countries by 2015
On May 25, 2012, Toyota announced plans to develop eight models of small cars for emerging countries based on the "Etios" originally launched in India in December 2010, release them for sale in a hundred countries in the world with a price tag of around 1 million yen, and sell a million units of them a year in the world by 2015. The new models are to be produced in India, Thailand, Indonesia, Brazil and China, and marketed worldwide. Toyota intends to raise the local content ratio to 100 percent in the ASEAN areas in particular.
Consolidated vehicle sales: Record-high sales of 2.36 million vehicles in January-March 2012
Toyota's consolidated vehicle sales in FY2011 were 7.35 million vehicles. The result in the first quarter (April-June) was low at 1.22 million vehicles (a year-on-year decline of 40 percent) due to the Great East Japan Earthquake but sales picked up gradually until the company marked the record-high quarterly sales of 2.36 million units in the fourth quarter (January-March 2012).
Toyota expects its annual sale in FY2012 to increase by 1.35 million to 8.70 million vehicles, only 210,000 units short of the peak record of 8.91 million vehicles registered in FY2007. The annual sales forecast for FY2012 include 2.2 million units in Japan (up 130,000 units) and 6.50 million units in markets other than Japan (up 1.22 million units). Toyota expects, in particular, an increase of 480,000 units in North America, and an increase of 450,000 units in Asia (other than China) which will result in record-high sales of 1.78 million in the region.
Toyota's consolidated sales by region
|(thousand of vehicles)|
|Japan Market share (Japan, excl. mini)||2,188 45.6%||1,945 46.0%||2,163 48.2%||1,913 47.3%||2,071 45.5%||2,200 around 48%||129 around 2.5%|
|North America Europe Asia Others||2,958 1,284 956 1,527||2,212 1,062 905 1,443||2,098 858 979 1,139||2,031 796 1,255 1,313||1,872 798 1,327 1,284||2,350 860 1,780 1,510||478 62 453 226|
|Source：Toyota's FY 2011 Financial Results|
|(Notes) 1.||The consolidated vehicle sales include those of Daihatsu and Hino but do not include those produced by joint-venture partners in China.|
|2.||Toyota's market shares do not include mini-vehicles or vehicles produced by Daihatsu or Hino.|
Quarterly sales and operating income in FY2011
|Consolidated vehicle sales(thousand of vehicles)||1,221||1,805||1,969||2,357||7,352|
|Consolidated operating income (100 millions of yen)||(1,080)||754||1,496||2,385||3,556|
Targeting a consolidated operating income of 1 trillion yen in FY2012
Toyota's consolidated revenues in FY2011 declined by 2.2 percent to 18,583.7 billion yen and the consolidated operating income fell by 24.1 percent to 355.6 billion yen attributable in part to the 250 billion in foreign exchange loss.
Toyota is confident about the steady progress of its earnings restructuring efforts aimed at "achieving consolidated operating return on sales of 5 percent" at an exchange rate of 85 yen to the dollar and vehicle sales of 7.50 million vehicles" announced in the Toyota Global Vision in March 2011. Toyota could have ended the FY2011 in losses, because of the series of natural disasters, the Great East Japan Earthquake and the floods in Thailand, in addition to the yen's appreciation to below 80 yen per dollar if the company had been under the effect of its old mass production structure. Toyota thinks the operating income of 355.6 billion yen may be a small amount but it proves that the restructuring efforts have been effective in establishing a strong, profit-making foundation.
Toyota expects its revenues in FY2012 to increase by 18.4 percent to 22 trillion yen, and its operating income to be 1 trillion yen including 550 billion yen earned by "sales efforts" and 240 billion yen earned by "cost improving efforts" that will add up to 790 billion yen, which is large enough to absorb the 145.6 billion yen increase in overhead costs (assuming the impact of foreign exchange to be zero).
Toyota's consolidated results
|(millions of yen)|
|Net revenues Operating income Pretax income Net income||23,948,091 2,238,683 2,382,516 1,644,032||26,289,240 2,270,375 2,437,222 1,717,879||20,529,570 (461,011) (560,381) (436,937)||18,950,973 147,516 291,468 209,456||18,993,688 468,279 563,290 408,183||18,583,653 355,627 432,873 283,559||22,000,000 1,000,000 1,160,000 760,000|
|R&D expenses Depreciation Capital expenditures||890,700 947,000 1,482,600||958,800 1,042,400 1,480,200||904,000 1,072,100 1,302,500||725,300 1,032,000 579,000||730,300 812,300 642,300||779,800 732,900 706,700||810,000 730,000 820,000|
|Forex rates||Dollar||117 yen||114 yen||101 yen||93 yen||86 yen||79 yen||as premise: 80 yen|
|Euro||150 yen||162 yen||144 yen||131 yen||113 yen||109 yen||as premise: 105 yen|
|Source: Toyota's FY2011 Financial results|
|(Notes) 1.||The operating income in FY2011 (355.6 billion yen) represents a year-on-year decline of 112.6 billion yen from FY2010 (468.2 billion yen). The company earned 150 billion yen from sales efforts and another 150 billion yen from cost improving efforts, which added up to 300 billion yen of profit. But the company suffered from the impact of exchange rate fluctuation (250 billion yen) and overhead costs (162.6 billion yen).|
|2.||It is said that an increase in strength of 1 yen would slash Toyota's operating income by 32 billion yen in FY2011 and about 35 billion yen in FY2012 taking an increase in export into consideration.|
Analysis of FY2012 Forecast
|(100 millions of yen)|
|Consolidated Operating income (vs. FY2011 results)||FY2011 Results||Positive factors||Negative factors||Effects of Forex rates||Grand total||FY2012 Forecast|
|Marketing efforts||Cost reduction efforts||Increase in expenses|
Unconsolidated results: Expecting the operating deficits to shrink to 70 billion yen in FY2012, and to breakeven in the near future
In FY2006-2007 when Toyota posted its consolidated operating income to be in excess of 2 trillion yen, the reported unconsolidated figure was in excess of 1 trillion yen. But the company suffered an operating loss in FY2008 because of a significant decline in sales and the impact of exchange losses. The company suffered even more from the yen's high appreciation in FY2010-2011 with an operating deficit in excess of 400 billion yen.
In Toyota's outlook for FY2012, the exchange rate will remain virtually the same as in FY2011 and the company plans to export 2 million vehicles which will raise the ratio of export from 53.5 percent to 58.8 percent. Toyota's operating deficits are expected to shrink from 440 billion yen in FY2011 to only 70 billion yen thanks to a sales increase and earnings structure improvements. Restoring the company to profitability (unconsolidated) is one of the goals stated in the "Toyota Global Vision" announced in March 2011.
Toyota's unconsolidated results
|(millions of yen)|
Production in Japan and exports
|(thousand of vehicles)|
|Production in Japan||4,185||4,264||3,393||3,206||3,004||3,119||3,400|
|Ratio of exports||62.1%||63.5%||63.0%||51.3%||56.5%||53.5%||58.8%|
Source: Toyota's FY2011 Financial results
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