Ford and Toyota cutting the cost




The car market is sinking worldwide and the car manufacturers are facing the heat. The sales have dipped in almost the entire top car buying countries such as the US, China and UK and the only country which showed a positive scale that too slightly is Brazil. Rest of the world is bracing itself for dip in sales. The reason behind this could be the car prices rising rapidly every year and becoming more unaffordable and budget buyers are ready to buy used cars. The global rise in the demand for used cars across the globe is the proof of it. Many car makers have started or at least are planning to electrify their vehicles by 2020 and we could see many vehicles from different car manufacturers EV on road by 2025.

Car companies such as American automobile giant Ford and the world’s largest car seller Toyota motor company have decided to balance this effect by savings through costing cutting. According to sources, the Ford market of sedan is sinking and the cost saving will help them reduce expenses by 26 million dollars in the next 4 years. Toyota is also spending less on its research and development expenditure compared to it’s peer, Audi, Hyundai, Chrysler, Honda, Nissan, Kia, BMW, Jeep and many more. Toyota is spending the least on research and development at 3.1% and the Ford is spending 5.1% on R&D, while the highest is being sold by Audi at 6.3%.
Toyota has invested so much in the past decades on Research and development and was successful in producing cars human touch screens and hybrid cars and now the cut down in the cost of Research and development is bit of a surprise. Toyota sales are deckling and the there is a dip in the sales of the 
Toyota hybrid cars as well. Ford is also Ford is also spending 5 % on Research and Development and planning to launch all electric vehicles by 2022. It is planning to bring down billions of dollars from its budget and will be investing 11 billion dollars in the electric cars. Ford has raised its R&D expenditure to 9.6% from previous year as compared to Toyota which has raised 2.6%.
We can expect other automobile giants also to follow the same path followed by Ford and Toyota in cutting the costs and investing in the electric car segments. Sooner or later, this is supposed to happen.

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