Toyota to boost production by 500,000 units in 2008

December 17, 2007
By Ken Worsley

Over the weekend, the Nikkei reported that Toyota is expected to boost its production in 2008 by about 5%, or 500,000 units, which would mean the automaker is set to roll about 9.9 million vehicles off its production lines next year. When the 2007 figures are tallied, Toyota is expected to produce more vehicles than General Motors for the first time, and Toyota’s announcement for 2008 production is expected to widen that gap.

With demand surging in China as well as the Middle East, Toyota looks well positioned to increase its global reach in 2008. Certainly, risks remain for Toyota: Higher oil prices might bite into consumer demand, a stronger yen could cut into profit, and the potential for instability in China are all risk factors. At the same time, we feel the firm is positioned well and sticking to its guns of rolling out new models frequently enough to keep consumers interested in the brand. The question now is whether GM has any tricks up its sleeve for 2008…

Filed Under Automotive, Business