Toyota reveals new strategies

Japanese car giant Toyota Motor Corp said it would accelerate a push into emerging markets and launch more hybrid models as it aims to nearly double profits under a new long-term strategy.

The world's largest car maker, trying to move on from a global recall, also unveiled plans to slim its board to 11 members by June from 27 to speed up decision making as part of a new plan unveiled Wednesday.

Toyota has been struggling to improve its profit margins, which are weaker than those of Japan's number two Nissan Motor Co Ltd and third-ranked Honda Motor Co Ltd. Toyota stayed ahead of General Motors Co as the world's biggest automaker, but by a thinner margin last year.

Although Toyota's loss-making, export-dependent Japanese operations remain a major drag because of the strong yen, its shares have outperformed recently as some analysts expect profitability to improve with new, efficient manufacturing technologies and further cost cuts.

Under its "global vision" strategy, Toyota said it would aim for an operating profit of 1 trillion yen (US$12 billion) and a profit margin of five percent, against an estimated 550 billion yen and 2.9 percent in the current financial year ending this month.

It did not give an exact time-frame for the targets.

The plan, unveiled by company President Akio Toyoda, also called for Toyota to launch about 10 more hybrid models by 2015. It expects emerging markets to make up half of its sales by 2015, up from 40 percent now.

Since taking the job in June 2009 in the aftermath of the global financial crisis, Toyoda, grandson of the -company's founder, has often -spoken of the need to go back to the basics of "making better cars and -contributing to society."

That vision became a directive as a recall of millions of cars, mainly for complaints of unintended acceleration, damaged Toyota's once-impeccable quality image, especially in the important United States market. Toyota has recalled nearly 20 million vehicles worldwide since 2009.

Toyota shares have risen 13 percent over the past three months, however, outperforming its rivals.

"It looks like it is finally catching up with Nissan and Honda in recovering (profitability) and I think that is being reflected in the share price," said Makoto Kikuchi, chief executive of Myojo Asset Management Japan.