Japanese automakers ramping production for renewed American sales

Japanese automakers ramping production for renewed American sales

November 22, 2012 by · Leave a Comment 

Filed under: Car Buying , Japan , Plants/Manufacturing , Honda , Mitsubishi , Nissan , Toyota The 2011 earthquake and tsunami that struck Japan took quite the toll on the automotive industry in that nation. Not content to lean on that tragedy as excuse for slagging sales, the Japanese automakers are planning on a major production expansion in North America. The aim is to reclaim the market share lost from the Tsunami-based dip, and overcome a dollar/yen exchange rate that makes exporting to America unprofitable. Following the Tsunami, Japanese automakers ramped up production in their North American facilities to compensate, but according to Automotive News , Nissan , Honda and others have all reported plans for still-further increased production in the year ahead. As part of this ramp-up, Mazda will open a facility in Salamnca, Mexico before March of 2014. Part of that increase in output is 50,000 units of a Toyota-badged compact car, which Mazda will produce . Other Mexican production facilities opening include a Honda plant, which will open in Spring 2014 in Celaya, and a Nissan plant, set to open later this year in Aguascalientes. Nissan also said that it will need another plant in North America within the next five years. According to Nissan Boss Carlos Ghosn, the company aims to raise its stake in the US market from 8 percent to 10, and adding production will help achieve that goal. Even Mitsubishi is aiming to boost production at its Normal, Illinois plant.

Toyota sales rebound to reclaim spot as world’s largest automaker

Toyota sales rebound to reclaim spot as world’s largest automaker

July 27, 2012 by · Leave a Comment 

Filed under: Car Buying , Europe , Japan , Toyota Toyota has pushed ahead of General Motors and Volkswagen as the world’s largest automaker in the first half of 2012. According to a new Bloomberg report, the 4.9 million units sold by the Japanese automaker in the first six months of 2012 represents an impressive 34-percent jump. Toyota’s sales beat out GM by 300,000 units and VW by 520,000. Still, The General’s sales were up 2.9 percent to 4.67 million vehicles sold, while Volkswagen moved 4.45 units, an 8.9 percent increase. While Toyota has enjoyed success in its top markets, North America and Japan, GM and VW have struggled with the economic crisis in Europe. The Japanese automaker was able to accomplish this even in the wake of the disastrous tsunami in its home market and flooding that occurred in Thailand. According to IHS Automotive market analyst Rebecca Lindland, the strong start may be followed by a downturn in momentum: “they are still restocking dealerships, pulling in consumers who may have waited… but that positive impact will trail off as the year progresses.” Toyota previously took the top spot as the largest global automaker from GM back in 2008 amidst the American financial crisis, but General Motors reclaimed that title in the wake of Japan’s natural disasters. Toyota sales rebound to reclaim spot as world’s largest automaker originally appeared on Autoblog on Fri, 27 Jul 2012 18:31:00 EST. Please see our terms for use of feeds .

Toyota bracing for 31% drop in profit

Toyota bracing for 31% drop in profit

June 11, 2011 by · Leave a Comment 

Filed under: Japan , Toyota , Earnings/Financials Toyota has announced that the company’s net income for the fiscal year ending in March may decrease by as much as 31 percent compared to one year earlier. According to Automotive News , the Japanese automaker expects to earn around 280 billion yen, which is about $3.5 billion at current conversion rates. Last year, the company raked in 408 billion yen, or around $5.1 billion. The projected earnings are a far cry from what analysts had predicted. Bloomberg recently averaged the forecasts of 13 analyst estimates at 421.8 billion yen, or $5.3 million. Toyota is facing a number of hurdles related to the shortfall. Chief among those are production delays tied to the earthquake and tsunami disasters that struck Japan in March of this year. Toyota has a higher level of Japanese production than rivals like Honda or Nissan , and it may take longer for the manufacturing giant to get back on its feet. As a result, Toyota is bracing for a sales decline tied to fewer available vehicles. In addition, the yen is currently at its highest level against the dollar since the end of World War II, which is making the company’s exports less and less profitable.

Report: Toyota production back to normal by end of the year

Report: Toyota production back to normal by end of the year

May 1, 2011 by · Leave a Comment 

Filed under: Japan , Plants/Manufacturing , Toyota The Detroit News is reporting that Toyota believes its production will be back on track by November or December of this year. The automaker saw global manufacturing slow after the tragic earthquake and tsunami activity of last month, though pre-disaster levels of production may return in Japan as soon as July. Meanwhile, shipping delays will cause manufacturing at the company’s overseas plants to begin to normalize beginning in August. It will then take another two months for production to completely meet earlier targets. Currently, Toyota’s Japanese facilities are operating at around 50-percent of capacity, though as The Detroit News reports, parts shortages have caused production delays at the company’s plants in the U.S. and around the world. While Toyota says that it will continue to work with its standard parts providers, the automaker has also made it clear that it will explore substitute suppliers as it continues to push toward returning to pre-quake output levels. [Source: The Detroit News ] Report: Toyota production back to normal by end of the year originally appeared on Autoblog on Fri, 22 Apr 2011 10:59:00 EST. Please see our terms for use of feeds . Permalink

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