Toyota Motor, the world's top automaker, is expected to slash its 2009 sales forecast by at least 1 million vehicles and outline plans to cut costs as the financial crisis threatens to cripple the industry.

Shares in European automotive companies traded lower Thursday after Morgan Stanley revised down its ratings and price targets for most of them.

The European car market suffered another month of heavy declines in June and its fourth drop overall this year as rapidly deteriorating economic conditions kept new car buyers from leaving the house.