Toyota to shed 50 percent of retooling cost thanks to efficiency strategy image

The largest Japanese company and the world’s biggest automaker announced recently it plans to shed half of the associated expenses when investing into retooling of its plants for upcoming models.

The cost cuts are associated to the recently announced refresh of overall strategy for developing and producing automobiles, and compare to the spending the company registered before the 2008 economic recession. The company’s new Toyota New Global Architecture (TNGA) efficiency and cost-saving plans have been set in motion by president Akio Toyoda, with the automaker also seeking to mitigate the cost of researching and developing a new model by more than a fifth. Additionally, the company has said that upcoming models based on the new TNGA platforms have been developed with a low center of gravity, which in turn improves handling, visibility and creates more opportunities for designers.

Toyota added that reaching a simplified manufacturing process, which taps measures such as the usage of more compact production equipment, will also bring reductions in the needed investments that associate with the building of new assembly facilities – by around 40 percent compared to 2008 figures. The company added that the process of retooling its current plants would need for a short period a larger investment effort, with savings from the future investments that would be substantially smaller. The automaker has also announced that around half of its models would feature TNGA platforms by 2020, starting with the much-anticipated medium-sized platform set to underpin the upcoming generation of the Prius hybrid.

Via Reuters