1-How is Toyota doing through this worldwide financial crisis? 
First of all, I would like to explain the latest situation of the Global Automobile Market. The new car sales in the world had shown steady progress, such as 66million units in 2005, 68million units in 2006, 72million units in 2007. But in the last year of 2008, it shrunk by 3million units to 69million units, mainly due to sharp drop in the US and European Market after Lehman Shock. Especially, US market reduced its size by more than 3million units from 2007 to 2008, and European Market (excluding Russia) by more than 1million in the same period. 
Toyota was not an exceptional case. Global Toyota Sales including Toyota, Lexus, Daihatsu, and Hino reduced by 0.4million units from 2007 (9.37million units) to 2008 (8.97million units). 
But what I can say now for Toyota’s strength was that we could keep good balance in the global sales not only in Japan, USA and Europe, but also other areas, such as Asia, Latin America and Middle East. Thanks to this balance, we could minimize the drop of the global sales due to the strong growth in Asia and Middle East. 

2- Which market has been more inflicted, is it USA? How does it then impact you? 
The biggest impact fell on the US market, which was 16.5million units in 2007 and 13.5million units in 2008. It could be forecasted as 10million units or less, if we calculate it from the result of January 2009. On top of the shrinking of the global market, Japanese Yen Appreciation against US Dollar and Euro (15% to US Dollar, and 30% to Euro since August, 2008) has affected our profitability a lot. 

3- What is your sales forecast for 2009 as TOYOTA is now the largest world manufacturer and the three US makers are in deep trouble? 
Due to the financial crisis, it is not easy for us to forecast the US and European Market especially. Though we make official announcement of Global Sales Plan every year in this season, we have suspended any public announcements, since we are unable to foresee the size of each market precisely. I personally think it would be very difficult for us to expect Global Market this year to be bigger than last year. 

Considered in general, the impact of the US Market was so big that we expect the revival of Global Market to be influenced by the US Market recovery. 

We expect the recovery to be visible in the 2nd half of this year, when the Fiscal Policy and the Financial Policy of the Obama Administration would show its effectiveness starting summer onwards, hopefully. 

4- Is the Middle-East Market a priority for you as it is for Nissan and other makers? 
Middle East is one of the most important markets for Toyota definitely. There is a long history of Toyota in the Middle East, more than 50 years. We are proud that we are the first Automobile company that paid attention to this region. In the year 2008, the Middle East Market showed a big jump from 2007, which was almost a 20% increase, while the US and European Market slowed down dramatically, as I said. We are expecting 3-5% growth this year, despite being affected by the US and European economy. 
Observing the current situation in the Middle East, Nissan and other brands started focusing on this market recently. But as I said, we have some advantages in the Middle East, such as business experience for over 50 years, knowledge of the customers, and Intelligence on Driving Environment. We have therefore kept developing Middle East Specifications, which is exclusive to the market for a long time. We believe these sincere activities contributed to our high market share in this region. 
> Yes, the Saudi market is our biggest one in the area as it imports 200,000 units of Toyota ; and its total market volume was more than 500,000 in 2007. However, Lebanon‘s customers are the most demanding and its road condition is very variable. Thus, we can learn a lot from the Lebanese customers and we make cars that adapt to this environment specifically. 

5- How do you explain that TOYOTA-LEXUS prices are at least 20 to 30% higher than similar brands, namely Nissan and Infinity ? Do you plan a DRASTIC drop in prices soon?
We know some competitors to Lexus have been dumping especially in Lebanon. But we have no plan to do any dumping for Lexus, as we are sure that our price is right anywhere in the global market. We would expect Lexus customers would understand the total cost of ownership. As you know, we are confident of Lexus Product Quality, and paying full attention to After-Sales Services. If the price dumping happens, the resale value would come down accordingly. We hope the customers would recognize the Total Lexus Value, which is not only the list price at the initial stage, but also Quality, availability of spare parts, After-Service Quality, Resale value and so on. 
It is only common sense to say that once other makers get rid of their current stock, they will raise their prices again as their cost is high to produce same vehicles. I personally foresee the price of crude oil barrel to be around $ 60-70 and the Japanese yen to be 1 $-100 JPY by the end of this summer. 
I also foresee that TOYOTA total operating losses to be 450 billions JPY from 1 April 2008 to 1 April 2009, this is only my estimation. Although the share price of TOYOTA is lower -around 3,180 JPY- but it is holding well under the current drastic events. 

6- Will this crisis negatively impact your research and development for new technologies and environment-friendly vehicles all over the world? 
Soon after we recognized the current financial crisis, we have taken many actions for better productivity and saving cost in all divisions. But we have no plan to reduce the budget for R&D investment. R&D is at the heart of TOYOTA. We have no plan to relax R&D activities including Environmental area. 

7- What is the reason for not pushing the sales of Hybrid cars in Lebanon, while TOYOTA is the world leader in such technology? 
We have recognized Lebanon as one of the most suitable markets for Hybrid models, and therefore, we are planning to introduce Prius in Lebanon this year, and studying future expansion of the Hybrid line-up for Lexus brand. We have conducted extensive testing in Lebanon in order to adapt the right battery for your climate, and now we feel safe to introduce our best hybrid technology here. 

8- Is TOYOTA pulling out of Formula-1 as Honda did? 
We have no plan to pull out of the Formula-1. We can enhance the brand image from our F-1 activity. But we understand the development of F-1. The pursuit of a faster machine will lead to discovery and invention, which can be applied to the cars in the market in terms of better engine, suspension, safety and other areas of technology. I am glad that the showing on your TV of our new movie on F-1 was well received by your viewers; it is a proof that your market appreciates new technologies where TOYOTA is at the forefront. 



Resume of Hajime (Jim) Sakaguchi 

Professional Career (TOYOTA MOTOR CORPORATION) 
Jan. 2006 – Present: General Manager, Middle East & Southwest Asia Dept. Oceania, Middle East & Southwest Asia Marketing Div. 
Jan. 2005 – Dec. 2005 : General Manager, Oceania Dept. Oceania, Middle East & Southwest Asia Marketing Div. 
Sep. 2004 – Dec. 2004 : General Manager, Oceania Division 
Jan. 2001 – Aug. 2004 : Assistant to the President, Toyota Motor Corporation Australia - Responsible for corporate planning 
Jan. 1998 – Dec. 2000 : Corporate Planning Division - Responsible for overseas project and mid-long term planning 
Jan. 1995 – Dec. 1997 : Global Strategic Planning Dept., Government & Industrial Affairs Div. - Responsible for trade and commerce 
Jan. 1991 – Dec. 1994 : Toyota Motor corporate Services of North America - Responsible for Investor Relation, New York 
Apr. 1988 – Dec. 1990 : Government & Industrial Affairs Dept., Global External Affairs Div. - Responsible for trade and commerce 
Jul. 1985 – Mar. 1988 : Operation Dept., Overseas Planning Division - Responsible for overseas project planning 
Sep. 1979 – Jun. 1984 : Public Affairs Div. 
Apr. 1979 : Toyota Motor Sales Inc. 

Academic Career 
1995.01 NEW YORK LAW SCHOOL, Julis Doctor 
1985.06 KENNEDY SCHOOL OF GOVERNMENT, HARVARD UNIVERSITY, Master of Public Administration 
1979.03 WASEDA UNIVERSITY, Bachelor of Political Science 

Personal 
Date of birth : April 3, 1955