Section 2. Launch of New Management Systems

Item 2. Implementation of New Policies and Difficult Decisions

Signs of Recovery

In his New Year's address to employees for 2010, made even as the company continued to face difficult decisions, President Toyoda announced the he would "place importance on gratitude, modesty, and conviction." He also said that he wanted Toyota to be "the most admired company in town, selected and respected by customers" and that he wanted, through the strength all employees, "to make Toyota into a company where all personnel feel strongly that they are happy to be a part of Toyota."

Initially, TMC projected an operating loss of 850 billion yen for fiscal year 2009 (ended March 2010), but in addition to the effects from a sharp reduction in total costs and emergency value analysis (VA), the scope of which was expanded to more vehicles, the Japanese market recovered thanks to tax reductions on, and government subsidies for, fuel-efficient vehicles, and results improved at a better than expected pace. In a new year's message, President Toyoda expressed his commitment to persevere until TMC had fully returned to profitability and to make a new start so that TMC was once again a company where employees were proud to work.

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