Toyota says it is expecting its full-year operating profit to drop by 80% to its lowest in nine years as a result of the Covid-19 pandemic, and said it is expecting sales to remain weak for the rest of 2020, with global sales anticipated to drop by more than 1.5 million units compared to last year.
The company has forecast an operating profit of 500 billion yen (RM20.23 billion) for the year through March 2021, down from the 2.44 trillion yen (RM98.7 billion) it achieved in the year just ended, Reuters reports.
“The coronavirus has dealt us a bigger shock than the 2008 global financial crisis. We anticipate a big drop in sales volumes, but despite that we are expecting to remain in the black,” its president Akio Toyoda said last week.
It is forecasting global sales to be at around 8.9 million vehicles this coming year, a significant drop from the 10.46 million units it achieved in the year just ended. It added that sales are not expected to recover to 2019 levels until next year.
It is cutting production as a result of weak consumer demand. In Japan, vehicle production will be reduced by 122,000 units in June, with production being halted at all of its 15 plants for four days next month. It was previously reported that the automaker was scheduled to slash production in North America by nearly a third right through October.
Despite the profit slump and a sharp cut to margins, Toyota said it would pour more than one trillion yen (RM40.4 billion) each into capital expenditure and R&D investment, keeping spending largely unchanged from last year. This was because the company does not want to stop investing in the future, operating officer Koji Kobayashi said.
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Understood that all global carmakers sales dropped as hitter by Covid-19
Huge loss or bankrap, Proton never die..amazing
Especially for toyota, hyundai, kia, bmw, mercedes, geely, volvo, nissan and mazda will never give up too. They will work hard and save their companies too..
Habislah Toyota! Better sell whole company to China. lol
Expected to return back to normal next year. This includes other brands too.
Yay! You either keep your brand image high with no sales or sell some cars with lower margin. During bad times like this… Ppl will be pound and penny wise. Ppl can live without new cars… But can you Toyota without customer
Honda also lost their profits with lesser sales with lower margin. Same goes to malaysia, margins already plummeting while increasing their service charge as going to be called as honda “premium brand”. Not to forget, quality and service is very poor too. It is better to tutup honda.
Aiyaaa…..better hope that honda will bankrupt soon then all honda global worldwide will close shop very soon
Better hope all Jepunis automaker and their celup subs kolos shop for their sins of underspec the cars they sell here and safety specs like a burnable coffin. Those brands which value lives over profits like P1 and Volvo and Geely shud be allowed to stay.
If honda will close their shops totally, then all honda fanboys will keep their mouth quiet and not need to make big noise anymore about problems for P1, volvo, bmw, toyota, mazda and nissan. Which aftersales service and quality is bad in here including everywhere with increasing their service charge. As well as mostly honda models have lacking of safety features. This will hurt people’s lives for driving honda. And now that’s the reason why everyone are boycotting honda malaysia. It will be better to stay with these brands that are caring for people’s lives and their value lives over profits like P1, volvo, geely, bmw, toyota, mazda and nissan.
Don’t worry. Once reduce price, then it will be good sales just like the famous P1
But very sure that toyota would still able to survive and will do it better in coming years that prevents from bankruptcy
Kesian UMW MAlaysia. Many toyota salesman oredi looking for jobs becoz poor sales.
Ini semua salah virus.