Toyota USA is looking closely at its model range, and could cut unprofitable models with little strategic value, even though profits are growing.
“We are taking a hard look at all of the segments that we compete in to make sure we are competing in profitable segments and that products we sell have strategic value,” Jim Lentz, Toyota North America’s CEO, told reporters after announcing a rise in quarterly profits.
Among the models widely tipped to be axed are the Toyota Yaris hatch, which not only sells in small numbers, but probably won’t be fully refreshed until 2021. The bulk of Yaris sales in the US come from the Yaris sedan, which is a rebadged Mazda 2.
Another model likely to be chopped is the Lexus GS. A small seller, it’s place should be filled by the similarly sized and much cheaper ES sedan.
Although the Toyota 86 is a smaller seller, it will probably be kept as it serves as an affordable halo car.
Source: Automotive News