Toyota Motor said it plans to use new making methods to make five million units, about half of its worldwide auto sales, by 2020. Toyota New Global Architecture, started in 2012, is an effort by the automaker to streamline operations by dipping the number of parts and modules used crosswise different models. These efforts are predictable to enable the automaker to reduce growth time by more than 20%.
Toyota’s Executive Vice President Mitsuhisa Kato said that the time saved would help Toyota Company make better cars. Recently adopted engine and transmission will help get better fuel economy by more than 25% and growing performance by more than 15%, compared with present models. Fuel economy of hybrid vehicles will be improved by more than 15% by using lighter and more compact batteries and motors.
By the end of this economic year, it too plans to halve the cost of adapting plants and equipment when switching vehicle models. The opening of the new production method will require fresh asset in plants, molds and other equipment to allow the automaker to share parts between models. Toyota Company will hold down investment in existing factories to keep earnings at around the present levels.
Toyota began running on the new production method after it was hit hard by the worldwide financial crisis. The figure of its vehicle models swelled to about 100 before the crisis, creation development processes too long. Factories put too much emphasis on growing vehicle numbers, and failed to curb fixed expenses before the crisis hit.