by Toyota’s New CEO Plans to Reduce the Number of Models and Trims
Toyota’s new CEO intends to cut costs and increase the company’s profitability. He believes the automaker creates too many variants of the same vehicles. Some models and trims may be canceled to streamline the lineup.
Toyota’s model range has expanded significantly in recent years, and the company offers a vast number of trims. For example, there are 12 versions of the 4Runner SUV and 10 variants of the Grand Highlander.
The Problem of Excess and Ways to Solve It
Toyota’s new CEO wants to address the issue of “bloat” and transform the automaker into a leaner and more profitable company. According to Autonews, he recently stated:
“If you go into the development department, you can see problems such as the growing number of different specifications and variants, which in turn leads to rising costs.”
Although variety is the spice of life, Kenta Kon hinted that the company may need to take a closer look at things that do not generate profit. The publication notes that this is part of a large-scale review, and virtually everything is up for discussion.
Since the reorganization was announced in May, the company has canceled plans for a production version of the Lexus LF-ZC concept. The electric sedan was rumored to arrive in 2027, but it was scrapped for a number of reasons, including expected low demand.
Which Models Might Disappear?
Although it is too early to say exactly what will be removed, it is not difficult to compile a list of potential candidates. For example, the Mirai is currently nothing more than an image project — only 210 such vehicles were sold in the US last year. For comparison, in December alone, dealers sold 576 units of the GR86.
The Crown model has also not taken off in America, despite its attempt to combine the characteristics of a crossover and a sedan. Sales fell more than 37% last year, to 12,309 units. The company could redirect these buyers to the Camry or Lexus ES.
Interestingly, Crown Signia sales are rising — they more than doubled to 20,550 units. This is good news, but still far from the 32,086 Venza crossovers sold in 2024.
It is also worth mentioning that there are numerous variants of the Tundra pickup, even though the company sells only about 150,000 of these vehicles per year. Specifically, there are 10 trims, as well as four cab and bed configurations. This is likely excessive, as Toyota offers four luxury versions: Limited, Platinum, Capstone, and 1794 Edition.
They probably generate good profit due to inflated price tags, but the price difference between the Platinum and 1794 Edition is less than $2,000. Are both really necessary?
Overall, the strategy of Toyota’s new leadership is aimed at increasing efficiency. Reducing the number of models and trims could help lower production costs and simplify logistics. At the same time, this is a risky move, as some niche models, like the Mirai, despite having low sales, play an important role in shaping the brand’s image as a technology leader. The company will have to find a balance between profitability and maintaining its innovative spirit.
