Toyota, which Wednesday announced yet another record annual profit, has opened a new engine manufacturing plant in Brazil that it hopes will bolster the automaker’s operations throughout Latin America.
But the debut of the new factory comes at an unusually tough time for the Japanese giant. Even while earning a record $21 billion for the fiscal year that ended March 31, Toyota warned it would see as much as a 35% decline in the coming fiscal year. And one reason is weak sales in Latin America.
Things have gotten particularly dire in Brazil, a country in the midst of its worst recession in decades, as well as a political upheaval that is considered increasingly likely to result in the ouster of its embattled president. (more…)