Toyota says it will make 10% lower vehicles in July as compared to its original plan
- Toyota says it will make 10% lower vehicles in July as compared to its original plan.
- The automaker estimates an 80% decline in its full-year profit due to COVID-19 restrictions.
- Toyota Motor Corp is currently just over 10% down year to date in the stock market.
In an announcement on Monday, Toyota Motor Corp (LON: TYT) said that it expects to produce 10% fewer vehicles in July as compared to its original plan. The Japanese automaker is gradually resuming operations at its factories following months of closures due to the ongoing Coronavirus pandemic that has so far infected more than 9 million people worldwide and caused a little under half a million deaths. Toyota estimated an 80% decline last month in its full-year profit as Coronavirus weighed on demand.
Shares of the company ended almost flat on Monday. Toyota is currently just over 10% down year to date in the stock market. It is valued at £210 billion and has a price to earnings ratio of 9.35.
Toyota to make 71,000 fewer vehicles globally in July
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Originally, Toyota had a target of making 700,000 vehicles globally in July. Owing to the COVID disruptions, the car manufacturer is now expecting to produce about 71,000 fewer vehicles next month. Toyota is yet to push its global production back to the pre-virus levels. The 10% lower output in July, however, will represent a significant improvement as compared to June when the company is set to manufacture about 20% fewer vehicles.
As per a spokesman for Toyota, the gradual recovery in production levels is likely to continue in August. Toyota also highlighted on Monday that from April to July, its global production is expected to see a 30% decline versus the original plan. In the same period last year, Toyota had produced a total of about 3.7 million vehicles globally.
Global carmakers are currently scrambling to recover from the impact of COVID-19 that halted production activities in recent months. The auto industry has taken one of the hardest hits due to the health crisis in 2020. Toyota recently announced plans of developing fuel cell vehicles in China.
Toyota to make 39,000 fewer vehicles in Japan
In its home market, Toyota says it anticipates to manufacture 39,000 fewer vehicles next month that also translates to a 10% decline as compared to the original plan. The company plans on suspending production for its Coaster minibus for 6 days. Prado, Land Cruiser, and Porte subcompact production will halt for 2 days. The adjustments, as per Toyota, will affect 3 of its production facilities and 6 production lines.
Toyota currently operates 15 production plants and 28 production lines in total in Japan. The company plans on keeping second shifts suspended at a number of these facilities until September. Some of the Saturday shifts will also be cancelled in July; a decision that will affect Toyota’s four lines in Japan producing models such as the Prius gasoline hybrid and the RAV 4 SUV crossover.