Filed under: Toyota , Earnings/Financials Toyota isn’t just the world’s largest automaker – so far its the biggest winner for quarterly profits. With an enormous $5.5 billion take during Q2, Toyota took advantage of the weak Japanese yen and strong US demand to record a 94-percent improvement in profit over the same period from last year. So far, Toyota brought in larger profits than Ford and General Motors combined. Toyota is showing no signs of slowing down either, as it has bumped up its forecast for full-year global production, going from 9.94 million to 10.12 million vehicles, on the back of a 13-percent drop in the buying power of the Japanese yen versus the US dollar. That strong exchange rate is largely responsible for Toyota’s big jump in profits, although it also managed to shift 1.3 million vehicles in the US market this year. Strong Camry sales have also helped. But while Toyota is raking in the cash, it actually saw a small drop in market share, down 0.1 percent to 14.3 percent of the US market. As is the case with most automakers, Toyota seems flummoxed by Europe, where it recorded less than one percent of its revenue. Still, as Automotive News points out, Toyota only maintains a 4.5-percent market share in Europe and is far less dependent on the continent than other manufacturers. Toyota also struggled at home, much like Honda .
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.
Filed under: Budget , Sedan , Europe , Japan , Plants/Manufacturing , Hatchback , Toyota Toyota has already made it abundantly clear the company intends to scale back production in Japan in an attempt to combat the ever-strengthening Yen, and now it looks as if we know one of the ways the automaker plans to do so. Toyota has announced it will manufacture U.S. and Canadian-spec Yaris models in its Onnaing-Valenciennes facility in France . The plant has been producing the Yaris hatchback for European buyers since 2001, though this marks the first time in Toyota history that the automaker has built a vehicle in Europe and imported the model to the States. North American-spec Yaris models differ slightly from their European counterparts. In addition to using different fascia designs front and rear, the NA model comes available with an automatic transmission and a market-specific 1.5-liter four-cylinder engine. There is some differentiation in safety equipment between the two models as well. Japanese automakers have recently revealed that building cars in Japan and exporting them around the globe is quickly becoming a money-losing proposition. Honda has made it clear the company is seeking alternatives to producing models like the Fit and CR-Z in Japan due to the high costs associated with exporting the vehicles. Toyota to build Yaris in France for North America originally appeared on Autoblog on Mon, 25 Jun 2012 17:45:00 EST.
Filed under: Government/Legal , Japan , Honda , Nissan , Toyota , Earnings/Financials For years, Detroit automakers would argue that the Japanese yen was artificially devalued, and that the value of the currency was a big competitive advantage to the likes of Toyota and Honda . To erase this gap, The Detroit Three pressured suppliers to lower costs in any way possible, which caused ill-will within their supply bases. In fact, Japanese automakers routinely scored higher in supplier relation studies, while General Motors , Ford and Chrysler hovered at the bottom of the list. One massive global recession and a fast-rising yen later, it appears that the shoe is on the other foot. Automotive News reports that Toyota has made it clear to its 219 largest domestic suppliers that costs must be cut or business will be lost to countries with cheaper labor. Toyota reportedly loses $343 million in profit for every one yen the currency rises against the dollar. Given that the Japanese currency has risen by 13 versus the dollar over the past year, Toyota could be looking at a staggering $4.5 billion in losses. For perspective, that’s more than half of Toyota’s total research and development spending for any given year. Ouch. And Toyota isn’t alone in looking for ways to combat the rising yen.