Toyota Scales Back Up

Toyota Motors has sclaed back up it’s losses with some clever strategies. Toyota has put the prices of their cars down and improved sales of some of their cars. Another thing they did to save money was to back out of the Formula 1 races. For example, the Prius, their hybrid car. Toyota’s prediction of how much money they would lose also improved. Since the recession, the price of gasoline has gone up and consumers want to have smaller, cheaper cars because of that. Toyota sells large cars from SUVs to small cars like compact cars.

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One Response to “Toyota Scales Back Up”

  1. It’s good to hear Toyota is recovering from their losses. Their increase in profit by lowering car prices most probably points at a elastic PED, along with a high YED since cars are luxury goods. Although it was a smart choice to pull out of the Formula 1 races, it is saddening that there are no more Japanese automobile companies such as Honda and Toyota competing anymore in the F1 races. I agree that consumer demand has shifted from enormous SUVs to small, efficient cars and because Toyota had a wide range of variety they were able to adapt to the recession.

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