The American automobile giant Ford Motor Company and the leading Japanese automaker Toyota Motor Corporation is focusing on cutting their costs deeply for the purpose of saving uncontrolled expenses and to over come the concerns of decline in sales and profits. In contrast of positivity of expense control, the fear of curtailed investment is looming around the vehicles circles.
Ford is currently passing through a phase of sinking sedan market. The souring fact of declining profits has forced them to slash down some expenses estimated about 26 million dollars over the next four years. The competitor Toyota is not behind as they have 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.
In fact Toyota has already invested a very huge amount in new era century revolution and automation with a human touch vehicles but now going down on cost cutting with less R &D expenditure. Wrong or right but Toyota established its electric car unit after many years of research on solid state batteries. Toyota Hybrid Car market has also witnessed a decline in recent months. Likewise, Ford is spending 5 percent on R and D and planning to launch all new 16 electric vehicles in the market by 2022. They are also intended to cut down billion of dollars from its estimated budget and planning to invest 11 billion dollars in electric cars. They have raised R &D expenses about 9.6 percent in previous year as compared to Toyota which is merely 2.6 percent.
Looking at the future, it is expected to happen a deep cutting costs by various automobile companies in order to meet up their desired budget for new innovations in the market. Toyota and Ford are setting up examples for saving cost expenses with less spending on R&D activities.