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Posts Tagged ‘Toyota Production’

Toyota Earnings Slip; Company Cuts Forecast

Strong yen, production problems, sliding margins take a toll.

by on Aug.04, 2016

Toyota CEO Akio Toyoda faces pressure to cut costs even as the maker invests in new products.

Snagged by a strong yen, tepid sales and supplier problems, Toyota Motor Corp. delivered a weak profit for the latest quarter, the Japanese giant also warning that the current fiscal year could be its weakest in nearly half a decade.

Toyota, whose global sales slipped behind rival Volkswagen AG for the first half of this year, said it earned $5.1 billion for the April-June quarter, the first in its new fiscal year. That was a decline of 14.5%. Operating earnings, meanwhile, were off 15%, to $5.9 billion.

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Net revenues also declined 5.7%, to $60.9 billion, despite a modest 1% increase in global vehicle sales. The maker sold 2.53 million cars, trucks and crossovers for the quarter, but that number was short of expectations due to a series of natural and man-made disasters that impacted production in Toyota’s home market plants.

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Despite Diesel Dilemma, VW Snatches Global Sales Lead from Toyota

Toyota loses momentum due to production snags.

by on Apr.27, 2016

Despite some serious problems, VW could retain the sales lead during the second quarter.

It’s had to suspend sales of its popular diesels in the U.S. market, and it’s already taken an $18 billion hit in the wake of its ongoing diesel emissions scandal, but not all is doom-and-gloom for Volkswagen AG.

The embattled automaker can celebrate the fact that it surged into the global sales lead for the first quarter of 2016, narrowly squeaking by Japanese giant Toyota which has had its own problems in recent months. General Motors continued to hold down the third spot in the global sales sweepstakes.

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Whether VW can hold the lead for the rest of the year is far from certain. It was, in fact, the top-seller for the first half of 2016, only to slip behind Toyota once again as the diesel disaster began to take its toll. But wildcard factors have a way of upsetting the industry’s apple cart, and Toyota is currently dealing with problems that will likely scuttle its chances of regaining the sales crown for at least another quarter.

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Steel Shortage Shutters Toyota’s Japanese Plants

One week closure to have major production impact.

by on Feb.01, 2016

The new 2016 Toyota Prius is one of the models to be hurt by the steel shortage.

Toyota will halt production at its Japanese auto assembly plants for a week due to a shortage of steel.

The week-long closure, which begins on February eighth, comes in the wake of an explosion at a steel plant operated by one of its key suppliers, Aichi Steel Corp. early last month. That has left Toyota struggling for the steel it needs for a variety of its operations, including powertrain and chassis components.

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“Operations are scheduled to recommence on February 15,” Toyota said in a statement, “and vehicle production on lines outside Japan will not be suspended.”

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Toyota Eyes New Wave of Expansion

by on Apr.06, 2015

Toyota is expected to build the next-generation Corolla model at a new plant in Mexico.

With auto sales expected to increase in key market around the world, Toyota is apparently looking to expand its capacity by building new assembly plants in China and Mexico.

Press reports from Tokyo said that the Japanese auto giant anticipates investing $1.3 billion to build the new plants – a move that would reverse a ban on new factories imposed by Chairman Akio Toyoda when he took over as the company’s top executive.

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Just last week, senior Toyota officials announced the first part of their new growth plan, dubbed Toyota New Global Architecture, or TNGA. The use of the word was fitting, analysts noted, because a key step will be the introduction of new vehicle architectures, or platforms for at least half of its vehicles by 2020.

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Toyota Eyeing Plant for Mexico

Maker reportedly eyeing several possible locations.

by on Sep.11, 2014

Toyota may be the next to head South of the Border.

Toyota may soon become the next major automaker to open an assembly plant in Mexico, following other global manufacturers including BMW, Kia and Mercedes-Benz, all of whom announced plans to set up operations “South of the border” in recent months.

Toyota, which already operates an extensive manufacturing network in the U.S. and Canada, would not be a stranger to Mexico. It already operates a so-called “kit car” plant in Baja, California an hour south of Tijuana, that assembles about 50,000 small pickup trucks annually.  But unlike other global manufacturers, Toyota has not built a full-scale assembly plant in Mexico, which has seen automotive-oriented investments boom in recent years.

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Mexico is already the world’s sixth-largest auto producing nation, with manufacturers including Detroit’s Big Three, Volkswagen and Nissan, firmly entrenched. Audi is in the midst of readying a plant near Puebla that will become the first to build luxury cars. Honda joined the procession in February, and, just since June, Kia Motor Corp. BMW AG and Daimler AG have announced plans for Mexican operations.

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Sales Down But Earnings Up for Toyota

Japanese giant benefits from cost-cutting, weak yen.

by on Nov.06, 2013

Toyota is counting on the new Corolla to help it boost earnings in the months ahead.

Toyota Motor Co.’s quarterly earnings soared by 70% despite slightly softer sales, reflecting the Japanese giant’s cost-cutting efforts as well as the impact of the weak yen.

Toyota increased its earnings forecast for the full fiscal year after posting a $438.4 billion yen, or $4.4 billion, profit for the July – September period, up from 257.9 billion yen a year ago. The world’s largest automaker now expects to generate a 1.67 trillion yen profit for the fiscal year that ends on March 31, 2014.

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“In addition to the impact of the weaker yen, operating income increased due to our efforts with our suppliers and distributors for profit improvement through cost reduction and marketing activities, such as enhancement of the model mix.,” said Nobuyori Kodaira, Toyota’s executive vice president, in a statement.

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Toyota Earnings Nearly Double

Strong sales surge also put it #2 spot in U.S. market.

by on Aug.02, 2013

Toyota CEO Akio Toyoda, shown here during the launch of the Lexus GS, wants more "passion" in the maker's products.

It’s been a great week for Toyota Motor Co. A day after revealing a strong sales surge that positioned it – at least briefly – as the number two maker in the U.S. market, the Japanese giant announced that earnings for the April – June quarter nearly doubled year-over-year.

The 93% increase reflects a variety of factors, including the impact of the weakening yen, and came despite continued challenges in China, the world’s largest automotive market. The strong performance during the first quarter of Toyota’s fiscal year led the automaker to up its forecast for the months ahead. But Toyota officials did sound at least a small note of caution.

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Toyota beat estimates for both its first-quarter profit and sales, based on a consensus gathered by FactSet. April – June earnings came in at 562.1 billion yen, or $5.6 billion. Revenues were up 13.7%, meanwhile, to 6.25 trillion yen.

That encouraged the maker to boost its full-year earnings forecast to 1.48 trillion yen, which would be a 54% year-over-year gain. And Toyota now expects to reach an all-time industry record for production, at 10.1 million. It expects sales to be a slightly more modest 9.96 million, a target it had announced previously.

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Toyota Increasing U.S. Capacity – Again

Maker struggling to keep up with growing sales.

by on Jun.21, 2013

Toyota's latest investment will help keep up with consumer demand for products like the new Avalon.

With steady growth in North American sales pinching capacity throughout the auto industry, Toyota Motor Corp is struggling to maintain its market share and now plans to boost capacity with a $200 million investment at three key factories in the U.S.

Toyota is far from alone. Sales in the U.S. are expected to jump from 14.5 million in 2012 to 15.5 million this year, leaving a number of makers racing to keep pace. Among manufacturers now planning to add employees and, if necessary, expand existing facilities are Ford Motor Co, General Motors Co. Chrysler Group, Nissan Motors and Honda.

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The steep recession that started in 2008 forced manufacturers and suppliers to trim capacity and until now they have been slow to add new capacity even as sales have recovered. But the tempo of new investment finally is picking up.

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Toyota Freezing Plant Construction

Maker reportedly ordering 3-year hold.

by on Jan.10, 2013

According to a new report, Toyota wants to improve the efficiency of existing plants, not add new ones.

Toyota is planning to halt the construction of new plants around the world for at least the next three years, according to reports coming out of Japan. The decision represents a shift from Toyota’s previous policy of building new plants almost annually.

Officials from the Japanese auto giant have not commented directly on the reports. “I cannot discuss our business plans, but we consider it important to boost investment efficiency to secure medium-to- long-term growth,” a Toyota spokesman said.

Toyota, which last year again became the world’s largest automaker, would concentrate its capital investment on existing factories, the Nikkei business daily said.

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The company could officially announce the decision in a new management plan to be released in the coming months, Jiji Press said, as part of an overall effort to increase efficiency and cut costs. Like other Japanese carmakers, Toyota has been under intense pressure to control costs because of the steady increase in the valuation of the yen.

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Toyota Moving More Production to North America

Maker will maintain small “core” in Japan.

by on Aug.08, 2012

Toyota Motor Sales USA's top gaijin, Jim Lentz, revealing the A-BAT concept car.

Toyota expects to increase its already vast North American production network, a senior U.S. official revealed, adding niche products on top of the core vehicle lines that currently roll off an assortment of assembly lines in the U.S., Canada and Mexico.

The move comes as Toyota struggles to adapt to a changing world in which exchange rates now – and for the foreseeable future – make it increasingly costly to import vehicles from the home market, said Toyota’s top American executive, Jim Lentz.  Complicating matters, Toyota, like its competitors, have come to recognize how vulnerable Japanese operations are to disasters like the devastating earthquake and tsunami that struck the island nation in March 2011.

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But Toyota officials stress they will not completely abandon the company’s home base.

During a speech at the annual Management Briefing Seminars, in Traverse City, MI, Lentz declined to provide much detail, only noting that, “We’ll have additional announcements down the road as more of cars are designed, built, sold and serviced right here in North America.”

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