Toyota Forms Cost-Cutting Task Force

Toyota Motor Corp. has created a high-level task force to oversee spending and cost-cutting initiatives.

Under the plan, funding for new projects will be offset by corresponding cuts in other areas to help shore up sliding profits, Bloomberg News reports. The news agency cites a copy of a June 2 union newsletter it received.

Bloomberg says the new task force will be composed of four Toyota executive vice presidents: Mitsuru Kawai, Didier Leroy, Osamu Nagata and Shigeki Terashi. Nagata also serves is the company’s chief financial officer.

Toyota’s operating and net incomes fell 30% and 21%, respectively, for the fiscal year ending March 31. Last month the carmaker forecast double-digit declines for the current fiscal year, which Bloomberg notes would be the first time since 1994 that Toyota’s profits declined in two consecutive years.

The value of Toyota’ stock is down 15% this year, while the overall Nikkei Stock Average has grown 7%. Company officials are concerned that stagnate global vehicle sales and increasing development costs for automated vehicles and other emerging technologies could cause further profit erosion.