Toyota announced Monday it is cutting its 2008 global sales forecast by 350,000 units to 9.5 million vehicles because of a pronounced downturn in the U.S. market, a rare setback for the world’s biggest automaker, reports the AP and USA Today.
"The main reason for the change came from the faltering U.S. economy, and how rising oil prices and material costs are dampening the market there overall," said Toyota spokeswoman Kayo Doi.
Toyota now plans to sell 2.44 million vehicles in the U.S. instead of the earlier goal of 2.64 million vehicles.
Toyota outsold GM by 277,532 vehicles in the first six months of this year, selling 4.82 million vehicles worldwide.
Toyota’ sales rival, GM, also is making cuts. GM said Monday it will cut production by another 117,000 vehicles, because of low demand for pickups and SUVs, reports the AP and USA Today.
GM spokesman Tony Sapienza said the company will achieve the cuts by eliminating one shift each at its Moraine, Ohio, and Shreveport, La., plants. Most of the cuts will affect production of trucks and sport-utility vehicles.