Toyota CEO admits company has too many car models

New Toyota CEO Kenta Kon has admitted the company now has too many car models and wants to address the situation, transforming the automaker into a leaner and more profitable manufacturer. “If you visit the development division, you will see problems such as the increasing number of different specifications and variants being created, which ultimately drives up costs,” he said, as quoted by US automotive news site Carscoops on Friday, local time. Toyota’s product line-up has continued to grow in recent years and the company now offers a vast number of variants. For example, Toyota has 12 versions of the 4Runner model and 10 variants of the Grand Highlander. Although a wide range of choices is often considered a value-add, Kenta Kon hinted that the company needs to review products that do not contribute significantly to profits. Since a restructuring programme was announced last May, Toyota has scrapped plans to introduce a production version of the Lexus LF-ZC concept. The electric sedan, previously reported to launch in 2027, was cancelled due to various considerations, including low market demand forecasts. While it is still too early to know which models will be discontinued, it is not difficult to compile a list of potential candidates for the chop. The Toyota Mirai, for instance, is currently seen more as a prestige project than a commercially successful product. Last year, Toyota sold only 210 units of the Mirai in the US. By comparison, Toyota dealers managed to sell 576 units of the Toyota GR86 in just one month, December. The Toyota Crown model has also failed to attract American consumers despite attempting to blend crossover and sedan characteristics. Its sales fell more than 37 percent last year to 12,309 units. Interestingly, sales of the Toyota Crown Signia actually showed an increase, more than doubling to 20,550 units. While this is positive news, the figure is still far below the 32,086 units of the Toyota Venza sold in 2024. Additionally, Toyota has too many variants for the Toyota Tundra, even though the company only sells around 150,000 units per year. Specifically, the Tundra is available in 10 different variants along with four bed and cab configurations. This number is considered excessive, especially as Toyota offers four luxury variants comprising the Limited, Platinum, Capstone, and 1794 Edition.