70% Of Toyota-Dealership Operators See Need For Restructuring

Source: Wall Street Journal

NAGOYA, Japan (Kyodo)--About 70% of Toyota Motor Corp.'s (TM, 7203.TO) dealership operators see the need for restructuring efforts, including reducing employees and outlets, a Kyodo News survey showed Saturday.

Of the 42 managers of dealership operators surveyed in April, 27, or more than 60%, also said they had suffered as a result of the auto giant's worldwide recalls.

The survey indicated that dealership operations have become tough during a sluggish domestic auto market and consumer concerns regarding the quality of Toyota vehicles.

Asked what should be done to improve profitability, two of the surveyed managers said a cut in the number of outlets was required, while eight pointed to personnel reductions and 20 cited both.

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That is what most of the car manufacturers did in the UK years ago. Renault, within the M25 circle and Mercedes nationwide tookover actual ownership of the dealerships.