Despite its new family president taking a pay cut, Toyota had its credit ratings cut today by Fitch Ratings as weak car demand, especially in the American markets, continues to impact earnings.
The cut came after the Japanese carmaker announced across-the-board cost reducing measures, including a 30% salary cut for president Akio Toyoda (pictured). Toyoda, a member of Toyota's founding family, told reporters that Toyota was "in the middle of a storm." He added: "I will do my best to avoid a third consecutive year of losses."
May saw the company's US vehicle sales drop 39% compared with a year previously. As its biggest market, the drop in US business has hit Toyota hard and they expect to post a loss of €4 billion this fiscal year.
Toyoda is the first family member to occupy the top job for 14 years and has been trusted to steer the company through the extremely difficult trading conditions. Toyota is the world's largest carmaker and the world's second largest family business with annual revenues of $26 billion. The Toyoda family collectively owns a 2% stake in the company.