The Japanese auto giant has slashed its sales estimate for 2009 by 7%, but demand for green models will ease the pain

It's a sign of how tough times are for the world's automakers when even Toyota (TM), the world's most profitable automaker and soon to be the biggest, has to slash sales forecasts. In Tokyo on Aug. 28, Toyota President Katsuaki Watanabe said the company now expects to sell 9.7 million vehicles in 2009, down from a previous figure of 10.4 million.

The news should come as no surprise, given high gasoline prices, rising raw material costs, and the lingering impact of the subprime crisis. Even so, the current downturn in the U.S., Europe, and Japan has been worse than the company expected. "We initially thought a greater number of vehicles would be sold," Watanabe told reporters at a wide-ranging press conference. "The economic environment, the crude oil price, and the raw-material cost trends were not accurately forecast."

For further information: BusinessWeek