The loss experienced by the company has forced them to put all expansion plans on hold. The main cause for dropping the idea of expansion has been the fact that the demand for Toyota cars has declined in the U.S market which has been one of the key markets of the company.

The president of the company Katsuaki Watanabe said during a press conference “The tough times are hitting us far faster, wider and deeper than expected this is an unprecedented crisis requiring urgent action.”

In recent years the company had produced some amazing fuel efficient cars like the Camry sedan and the Prius gas-electric hybrid. These models had soared in the market and provided a big boost to the company.

The U.S market accounts for almost one third of the sales for Toyota. The fact that there has been a sharp decline in the demand for Toyota cars in the U.S and the rising power of the Yen have contributed to the lowering of sales for the company. The last twenty six months have seen the sales dropping to a record low.

Watanabe said “The change that has hit the world economy is of a critical scale that comes once in 100 years.” The operating loss that will be faced by the company has been estimated at 150 billion yen for the fiscal year that will be ending in March. Last year the same company has reported a profit of 2.27 trillion Yen. Toyota would however be able to reap some profits due to outside dividend income that is estimated at being around 50 billion Yen.

The iconic company has experienced a dramatic change in the face of the economic recession. It had outlined a plan for impressive expansion which the company has had to call off due to the slowing down of the demand for its products.