Toyota To Defer Launch Of New Models

Toyota, Japan's biggest auto maker has initiated a campaign to strengthen its quality control methods. This involves reviewing of design and procurement, as well as checks at various stages of car manufacturing. Insiders at Toyota reveal that the launch of new models may be delayed by as much as six months due to this exercise.

Toyota has been plagued with a rise in vehicle recalls due to quality deterioration. Although all these recalls have been made voluntarily by the company, they still erode the goodwill and reputation of the firm. Hence the need for quality enhancement arose at Toyota.

Toyota President Katsuaki Watanabe commented on the quality program and the resultant delays, “We try to affirm each process, and in that process, some (models) may be delayed, and some may be on time.'' The move would impact the development of next generation models that include the Sienna minivan, Solara sports coupe and Avalon sedan.

Toyota is confident of holding fort and be competitive. Toyota spokeswoman Shiori Hashimoto said, "We are not expecting any surprise in earnings from all this…..It is a fact that Toyota has been busy in investments, so it is good to take time to check."

In fact, Toyota has forecast sales of 8.85 million units and production of 9.06 million units for 2006, numbers that could give GM a run for its money as the world’s biggest automaker.