Toyota to focus on emerging markets

TOKYO, Mar 7 (Bloomberg): Toyota Motor Corp, which traditionally gets a majority of its profit in the US, will outline a strategy for growth in emerging markets in a 10-year plan the Japanese automaker is set to release this week, two people familiar with the plan said. Toyota also aims to cut two vice-chairman positions and shrink its board to 17 or fewer members from 27 as part of the biggest management shakeup in eight years, said two people, who declined to be identified as the information is private. President Akio Toyoda will present Toyota's "Global Vision 2020" plan on March 9 to help boost sales after record recalls contributed to the world's largest car company becoming the only major automaker to post falling deliveries in the US last year. As part of Toyota's focus on emerging markets, the carmaker added the Etios compact in India in December, which will also be modified for sale in China, Thailand and Brazil. "As the recall problem has settled down, there's hope that Toyota will turn around and get on the offensive, but I'm not optimistic," said Koji Endo, a Tokyo-based auto analyst at Advanced Research Japan. "Toyota has been trying to return to a less aggressive way of doing things after being so fixated on profit." Toyota fell 2.8 per cent in Tokyo to 3,680 yen as of 1:50 pm The stock has gained 14 per cent in 2011 after declining 17 per cent last year. The automaker relies on North America for about 60 per cent of its operating profit, excluding exports, according to the automaker. Standard & Poor's cut Toyota's credit rating to AA- from AA on March 4, citing "weak" profitability. Toyota spokesman Koki Konishi said the automaker can't comment on the plan at this point.