Toyota to Cut General Costs by 20 Pct in FY 2009

Tokyo, Feb. 26 (Jiji Press)--Japan's Toyota Motor Corp. <7203>
plans to cut its general expense, including marketing and advertising
spending, by 20 pct in fiscal 2009, which starts in April, to cope with
deteriorating earnings, Jiji Press learned Thursday.

As Toyota expects a group operating loss of 450 billion yen for
fiscal 2008 due to plunging global vehicle demand, the company intends to
promote cost reduction efforts, expecting a cut of 100 billion yen in
general expense, which also includes spending on entertainment and business
trips, informed sources said.
For fiscal 2009, the top Japanese automaker has already announced a
plan to lower its fixed costs, including wages, by 10 pct in order to
improve profitability by 500 billion yen.
In fiscal 2007, which ended in March 2008, the company spent 108.3
billion yen on advertising on an unconsolidated basis.
Toyota has reduced domestic ad spending by some 30 pct in fiscal
2008, and is now considering an additional cut of 20 pct or more in the
following year, the sources said.
The company is also expected to implement similar reductions in
other categories of general costs, the sources said.
As other major Japanese automakers such as Nissan Motor Co. <7201>,
Mazda Motor Corp. <7261> and Fuji Heavy Industries Ltd. <7270> are expected
to log group operating losses in the current year ending in March, they are
also expected to boost their cost reduction efforts, industry sources said.