(Bloomberg News) Toyota Motor Corp. plans to sell half of its vehicles in emerging markets and roll out ten more hybrid models as part of efforts to make at least 1 trillion yen ($12 billion) in operating profit by 2015.

Toyota, the world's largest carmaker, will also shrink its board to 11 members from 27 as part of the biggest management shakeup in eight years, the company said in a statement today.

President Akio Toyoda outlined Toyota's "Global Vision" today, which may help him strengthen his grip on the company after succeeding Katsuaki Watanabe in 2009 amid the recession. The carmaker, struggling to recover its reputation after record recalls, aims to get 15% of global unit sales in China, raise deliveries in Brazil and India, and make the 1 trillion yen in operating profit even if another financial crisis were to hit.

"We will focus on emerging markets and environmental vehicles," Toyoda, 54, said at a Tokyo press conference. "We will decide when and how much to increase capacity in emerging markets if we need to."

The financial crisis and Toyota's recalls of more than 8 million cars for problems linked to unintended acceleration led Toyota to fall behind rival Honda Motor Co. in terms of profit and operating margin. Toyota plunged to a 461 billion yen operating loss in the fiscal year ended March 2009 from a peak of 2.27 trillion yen a year earlier.

'Not Too Difficult'

The operating profit target is based on an exchange rate of 85 yen to the U.S. dollar and annual sales of 7.5 million vehicles, and could be met even if another economic downturn cuts sales by 20%, Toyoda said.

The carmaker expects sales to reach 7.53 million units this fiscal year ending March 31. Given current global trends, Toyota and Lexus sales may total 9 million vehicles by 2015, Toyoda said today.

"Profit of a trillion yen may not seem too difficult to achieve, but changing Toyota's governance will be tougher than you think," said Yuuki Sakurai, who manages about 180 billion yen in Tokyo, including the automaker's shares. "This last financial crisis has been described as something happening once in a hundred years, but we should not be lulled into thinking it won't happen again soon."

With the strong yen, turmoil in the Middle East and rising oil prices, Toyota needs to improve its risk management, Sakurai said. The company is planning a separate mid- to long-term management plan "soon," Toyoda said.

Toyota rose 0.4% in Tokyo to close at 3,715 yen before the announcement. The stock has gained 15% in 2011 after declining 17% last year.

China, India, Brazil

Fast-growing China, India and Brazil offer the biggest opportunities for Toyota, whose shares underperformed Volkswagen AG and Hyundai Motor Co. in 2010.

The automaker relies on North America for about 60% of its operating profit, excluding exports, according to the company. As part of its focus on emerging markets, Toyota added the Etios compact in India in December and is readying the small car for sale in China, Thailand and Brazil.

Toyota's sales in those regions made up about 40% of global deliveries in 2010.

'Behind Rivals'

"I thought Toyota would come out with a vision that leads its competitors, but I didn't see anything like that," said Tatsuya Mizuno, a director at Mizuno Credit Advisory in Tokyo. "Toyota is definitely behind rivals in emerging markets and in China we are now entering a period where we need to be cautious."

China's passenger-car sales growth in February fell to the slowest in more than two years after the government ended vehicle-buying incentives and a week-long national holiday stymied demand.

The Toyota City, Japan-based company's slimmer board may help it adapt to challenges and changes in the global industry more quickly, said Takeshi Miyao, an analyst at consulting company Carnorama in Tokyo. Honda, Japan's third- largest carmaker, also reorganized its management, cutting the number of company directors to 12 from 20, it said Feb. 22.

Toyota plans to add new hybrid models while bolstering sales of its best-selling Prius gas-electric car. Toyota will start selling 5-seater and 7-seater Prius wagons in Japan from late April and a compact version by the end of the year, Makoto Okabe, deputy chief engineer for the Prius "family" of cars, told reporters in Tokyo on March 7.

Among Toyota's management changes, Vice Chairmen Katsuaki Watanabe and Kazuo Okamoto, Executive Vice President Yoichi Ichimaru and Director Yoshimi Inaba will step down from the company's board. Ichimaru will become an adviser and Inaba will remain as head of North American operations.

The company won't add new vice chairmen and the changes are subject to shareholders' approval in late June, Toyota said.

Ray Tanguay will become senior managing officer from April 1 and will be ranked as the highest non-Japanese executive at Toyota.