Toyota President Says Company Will Work With Suppliers on Cost Cuts

Toyota President Kenta Kon said the company will work with suppliers to cut costs and improve production efficiency. “There is still room for improvement,” such as shortening the vehicle delivery time and reviewing the types of parts and components, Kon, who has inspected factories, sales outlets and parts makers since he took office in April, said in a recent interview.

In fiscal 2025, which ended in March, Toyota’s consolidated sales topped ¥50 trillion for the first time. Its operating profit fell for the second straight year. Kon said the company’s break-even point in vehicle sales is “slightly high” and needs to be lowered.

Kon indicated the company plans to continue making 3 million vehicles a year in Japan. “The concept of local production for local consumption is important,” Kon said of Toyota’s global production system. Toyota has already decided to shift the production of its Tacoma pickup truck from Mexico to the United States.

Kon said developing self-driving technology to reduce traffic accidents to zero would require coordinated efforts among humans, vehicles and infrastructure. In addition to the development of systems and vehicles, a mechanism to reflect information obtained through cameras and sensors in actual driving is necessary, he said.