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▼ Toyota Chiefs Vow to Work for Future Growth
- Category:Event
TOYOTA, Aichi (Jiji Press) — Toyota Motor Corp. President Akio Toyoda told shareholders Wednesday that he will “work hard for sustainable growth” after the company suffered its first falls in both sales and profit in five years.
The leading automaker reported its business results for fiscal 2016, which ended in March, during a general shareholders’ meeting at its headquarters in the city of Toyota, Aichi Prefecturen.
Toyota saw its group operating profit slump 30.1 percent year on year and its sales drop 2.8 percent in fiscal 2016, against a backdrop of yen strengthening.
For fiscal 2017, the company projects that both its sales and profit will drop again, reflecting weaker sales in the U.S. market.
During the meeting, one shareholder asked Toyota management about the company’s efforts to shore up earnings, while another expressed concerns over possible future declines in competitiveness.
“We know that the company won’t be all right if it remains as it is,” Toyota Executive Vice President Osamu Nagata stressed at the meeting.
“We will make every effort possible for a recovery.”
Nagata noted that Toyota plans to take measures including the release of a new vehicle model in the U.S. market, while promoting investment in advanced technologies. “We won’t decelerate our initiatives for the future,” he said.
The management submitted a proposal to cut total executive bonuses by about 15 percent, following the weaker fiscal 2016 results. It also proposed raising the upper limit on total pay for executives to ¥4 billion a year from ¥130 million a month, excluding bonuses, to prepare for a possible rise in pay for non-Japanese executives due to foreign exchange fluctuations.
The leading automaker reported its business results for fiscal 2016, which ended in March, during a general shareholders’ meeting at its headquarters in the city of Toyota, Aichi Prefecturen.
Toyota saw its group operating profit slump 30.1 percent year on year and its sales drop 2.8 percent in fiscal 2016, against a backdrop of yen strengthening.
For fiscal 2017, the company projects that both its sales and profit will drop again, reflecting weaker sales in the U.S. market.
During the meeting, one shareholder asked Toyota management about the company’s efforts to shore up earnings, while another expressed concerns over possible future declines in competitiveness.
“We know that the company won’t be all right if it remains as it is,” Toyota Executive Vice President Osamu Nagata stressed at the meeting.
“We will make every effort possible for a recovery.”
Nagata noted that Toyota plans to take measures including the release of a new vehicle model in the U.S. market, while promoting investment in advanced technologies. “We won’t decelerate our initiatives for the future,” he said.
The management submitted a proposal to cut total executive bonuses by about 15 percent, following the weaker fiscal 2016 results. It also proposed raising the upper limit on total pay for executives to ¥4 billion a year from ¥130 million a month, excluding bonuses, to prepare for a possible rise in pay for non-Japanese executives due to foreign exchange fluctuations.
- June 15, 2017
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