When it comes to automakers, few people think that Toyota is having the same sort of problems as are currently being experienced by the Detroit Three. Certainly, when comparing the Japanese automotive giant with General Motors, Ford and Chrysler, Toyota's financial condition pales. However, given that the entire globe is currently gripped in a recession, Toyota is cutting back in a bid to conserve cash.

Yes, the Toyota Motor Corporation - the largest automobile manufacturer in the world - is conserving cash, deciding to delay the production of two new plants. Toyota had planned to open a new plant in Russia as well as a plant in Thailand, but the company has announced that these plans have been put on hold.

The Thai plant was originally slated to produce diesel engines for trucks beginning in 2010, but with worldwide fuel prices plunging and the market for diesels being flat, Toyota has shelved its $155 million plant for now.

The Russian plant was supposed to be built next door to an existing plant near St. Petersburg, but has been pushed back as demand for the Toyota Camry (built at the current plant) did not meet expectations in 2008. Toyota had expected to build and sell 20,000 units last year but that goal wasn't reached, therefore the automaker has scaled back on its production goal for 2009.

The Thai and Russian cutbacks are part of a company-wide strategy for Toyota to evaluate its business in markets all around the globe. 2007 was a banner year for the automaker and by the end of the first quarter of 2008, the company was able to lay claim to the title of world's largest automobile manufacturer, a title wrested from General Motors.

In the US, Toyota has canceled plans to build its best selling hybrid model, the Toyota Prius, at a factory in Mississippi. Lower fuel prices have pushed demand for hybrid cars down, therefore Toyota has decided to keep production at its lone Japanese plant for now. In addition, the company has scaled back on production of its biggest vehicles, the Tundra pickup truck and Sequoia sport/utility vehicle, in a bid to align production with demand.

Toyota, like most other car manufacturers, is expecting that 2009 will be a challenging year, one that will translate into fewer vehicles being produced and sold. Those manufacturers who survive 2009 in good shape will likely thrive in 2010 and beyond, a position that Toyota believes will be favorable to them thanks to wise planning in 2009.

Author: Matthew C. Keegan

About the author:
Matthew C. Keegan is a freelance writer who resides in Cary, North Carolina. Matt is a contributing writer for Andy's Auto Sport an aftermarket supplier of quality parts including Acura CL headers and BMW 3 Series headers.

Article source: Free Cars Articles.