Toyota rolls out shared-parts strategy to chop costs

Toyota on Thursday announced plans to overhaul production to slash development costs, with a top executive describing the shakeup as crucial to navigating "sudden and drastic changes" in the auto sector.

While the Japanese car giant is on track for a record $18 billion fiscal year profit, largely due to a weak yen and strong North American sales, the world's biggest automaker said it needs to go further to protect its bottom line in a fast-changing market.

"Sudden and drastic changes in the business environment mean that conventional ways of thinking and doing business can no longer help us grow sustainably," Toyota President Akio Toyoda said in a statement.

"We are at a crossroads where we must now build a new business model."