(FT) -- Toyota Motor scaled back its loss forecast for the year to next March on Thursday, reflecting an aggressive cost-cutting drive and improved sales of some vehicles -- particularly low-emission cars such as its Prius hybrid, which have been made more affordable by government subsidies.
Toyota said it expected to make a net loss of Y200bn ($2.2bn), down from its previous projection of Y450bn. It narrowed its forecast for operating losses forecast to Y350bn from Y700bn.
On Wednesday, Toyota followed Honda and BMW out of Formula One racing to save money amid the economic downturn. Toyota's F1 programme is believed to have cost the company at least $300m a year, making the company one of the motorsport's biggest spenders.
Other Japanese manufacturers have also revised their outlooks upward in recent days. Nissan on Wednesday cut its net-loss forecast to Y40bn from Y170bn and said it expected to return to profit at the operating level.
Honda, which has weathered the slump better than most rivals thanks to its focus on small cars and motorcycles, trebled its net profit forecast last week.
Toyota has become the world's largest car producer in part by selling large pick-up trucks and SUVs alongside its compact cars and hybrids. That left it vulnerable to last year's surge in fuel prices and the recession, which has prompted many consumers to switch to smaller, cheaper vehicles.
© The Financial Times Limited 2009
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