Toyota to make affordable, stylish sports car

Toyota Motor is looking at producing a cheaper, fuel efficient sports car that meets style expectations, company president Akio Toyoda has said. The car would be produced in a joint venture with Subaru, a division of Fuji Heavy Industries, which makes Camry sedans for Toyota.

"We are back where we were 100 years ago, at a point where we must reinvent the automobile," Toyoda said at an industry conference delivering his first speech in the US since taking over as the president of Toyota in June.

Toyota had earlier in the week reported a loss of $819 million for the June ended quarter and a sales drop of 38.3 per cent globally in the same quarter. (See: Toyota posts $819 million Q1 loss, but anticipates upturn)

Toyoda also outlined his new strategy for bettering the company's sales. "I want to see Toyota build cars that are fun and exciting to drive," he said.

Toyoda stressed on fuel efficiency, saying the industry was at a "once-in-a-century crossroad".

"You're going to have to have passion in your products" while retaining quality and value, said Jim Lentz, president, Toyota Motor Sales, USA.