Toyota scales down sales forecast

Such is the weakness of the US automotive market that even Toyota has scaled down its sales and production plans for 2008. ┬á The Japanese automaker announced today that it has lowered its global sales forecast from 9.85 million to 9.5 million vehicles, still a one percent increase on last yearÔÇÖs 9.37 million vehicles, but nowhere near the six percent growth it achieved in 2007 or the five percent it originally predicted for this year.┬á┬á All automobile manufacturers are having to deal with reduced demand in the US as soaring gasoline prices and fears of a recession prompt many Americans to put off buying new vehicles.┬á┬á "The main reason for the change came from the faltering US economy, and how rising oil prices and material costs are dampening the market there overall," said Toyota spokeswoman Kayo Doi.┬á┬á Toyota now expects to sell 2.44 million vehicles in the US this year, compared with 2.64 million forecast earlier.┬á┬á The Japanese and western European markets were also sluggish, said Doi, but sales in China, the Middle East and other markets were enough to maintain ToyotaÔÇÖs worldwide growth.┬á┬á Overseas sales are expected to be two percent higher than 2007 at 7.27 million vehicles, but Japanese domestic sales are expected to fall one percent to 2.23 million. ┬á┬á Japanese rival Honda also downgraded its sales forecasts on Friday. General Motors, the worldÔÇÖs biggest auto manufacturer by unit volume for 77 years, but almost overtaken by Toyota last year, does not release full-year sales forecasts.┬á┬á Toyota outsold GM by 277,532 vehicles in the first six months of this year, selling 4.82 million vehicles worldwide.  ┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á