Deep Cutting Cost By Ford and Toyota

Ford and Toyota

The American automobile giant Ford Motor Company and the leading Japanese automaker Toyota Motor Corporation is focusing on deep cutting costs for saving more expenses. Ford is currently facing a sinking sedan market and is coming up with a decision to slash down some expenses some about 26 million dollars over the next four years. Toyota is now having a less spending on its research and development(R & D) which is much lower than its peers named as Audi, Volkswagen, Daimler, Ford, General Motors, Honda, Nissan, Hyundai, Kia, and Fiat Chrysler Automobiles. Toyota is currently spending 3.6 percent of sales on R&D as compared to 5.1 percent of Ford and 6.3 percent of Audi which is the highest spending on research and development.

Toyota has invested so much in new era century revolution and automation with human touch vehicles and now going down on cost cutting with less R &D expenditure. It has only established its electric car unit after many years of research on solid-state batteries. Toyota Hybrid Car market is also witnessing a decline. Likewise, ford is spending 5 percent on R and D and planning to launch all new 16 electric vehicles in the market by 2022. It is also intending to cut down billions of dollars from its estimated budget and planning to invest 11 billion dollars in electric cars. It has raised its R &D expenses about 9.6 percent a previous year as compared to Toyota which is merely 2.6 percent.

As for the future, it is expected to have deep cutting costs by various automobile companies in order to meet their desired budget for new innovations in the market. Toyota and Ford are setting examples of saving cost expenses with less spending on R&D activities.

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