Sunday , August 1 2021

Toyota raises its forecasts despite commercial uncertainties

Japan's car giant Toyota Tuesday, unlike its prediction, in spite of the cautiousness of 2018/2019, while still keeping track of US commercial threats.

Its goal now is to reach 2.3 billion yen in net annual income by March 2019 (17.7 billion euros using the exchange rate used by the group) instead of 2.120 billion yen.

This has fallen by nearly 8% on the previous record, but the automaker has already reached more than half the road and net profit was 1 242.4 billion yen during the first half of the year (April to September).

On the Tokyo Stock Exchange, investors also appreciated their wish to announce a new share ownership plan: in stock closed with a leap over 2%.

Toyota Officer, Masayoshi Shirayanagi, explained the growth of the targets with "the positive impact of the exchange rate and the weaker yen against the dollar and the euro" than was previously expected.

– cost reductions –

He also called at a press conference in Tokyo price reductions in costs and "marketing initiatives" that have made "price increases" especially in the US where the market is steam.

Prius hybrids (gasoline-electric) and Camry sedans have saved slowdown and sold 1.41 million vehicles in North America in the first half.

Toyota, with ten outlets in the US's largest market, is "cap", but "we are convinced that we can adapt to (potential capacity for) capacity reduction," says Jim Lentz, Head of Group Division.

The situation is still difficult: "there are commercial uncertainties," he said, and welcomes in this context the recent compromise on the conclusion of a new Free Trade Agreement between the United States, the United States, Canada and Mexico.

"Other wind forces suggest that the rise in raw material prices has affected us, including steel," because of new tariffs imposed by Washington, he added.

In China, another key to automotive manufacturers, Toyota has also delivered good performance, but it has to grasp its competitors.

Despite the negotiations between Beijing and Washington, "one thing is certain: in the long run, the market will continue to grow," says Didier Leroy, vice president and demands that the Japanese majors remain "weak in market share" in the first Asian country.

– "Be ready" –

Toyota sales also grew in Europe and elsewhere in Asia. However, they have fallen in Japan, where, trying to turn trends, the manufacturer initiates a subscription service soon, allowing drivers to drive a single monthly charge with their own car.

The total manufacturer has delivered nearly 5.3 million units in the first half of the year and is now one of the leading manufacturers of the German Volkswagen and the French-Japanese Alliance Renault-Nissan-Mitsubishi Motors.

Net sales grew by 3.4% on the previous year and totaled EUR 14.674bn (EUR 112bn), corresponding to a new annual forecast of 29.5 trillion yen (+ 0.4% a year).

Tuesday's tone seemed more optimistic than three months ago when Toyota leaders were concerned about potential US taxes for the car industry. Since then, Tokyo and Washington have agreed to launch bilateral negotiations.

"Today, however, we can not say that the risk of tax has fallen," warned Leroy. "It is still a very big uncertainty, it means you have to prepare for it, the goal is to say to yourself: we are prepared if it ever happens."

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