There are reports out of Japan that Toyota is setting a target of cutting prices 30% by 2013 in a strategy shift designed to keep up with hard charging competitors Volkswagen and Hyundai.
When I first read the report, I had two thoughts: There's no way they can cut prices by 30% and boy is this a gutsy move.
First of all, while the reportsays Toyota plans to cut prices by 30%, I think it's more a case of Toyota targeting cost cuts. What the company reportedly wants to do is target new methods, new possibilities for cutting the cost of developing and making up to 165 different parts. So this appears to be more about lowering costs, than about lowering sticker prices in showrooms. Still, 30% is an ambitious goal.
That brings up the risky part of this strategy shift.