Toyota Motor Corp. cut production estimates by half a million more vehicles a year, as processor shortages and coronavirus diseases hit production.
It will build 8.5 million vehicles a year through March 31, lower than originally estimated for 9 million vehicles, according to the world’s largest automaker, as it announced a 21% drop in operating profit for the third quarter through December 31. .
“We do not expect the imbalance in processor supplies to be resolved quickly and the course of the pandemic is unclear,” said a Toyota spokesman. “We believe the uncertainty will continue into next year,” he added.
Like other major automakers, Toyota, which is expected to build 9.3 million vehicles worldwide at the start of use, has been forced to cut production as the pandemic wreaks havoc on supply chains worldwide.
The drive to increase margins has been helped by strong demand in key markets such as China, the US and Europe, allowing prices to rise and reduce its incentives to attract customers.
The company also benefits from the weak yen that enhances the value of profits abroad.
Maintains the estimates for the profits of the year at 2.8 trillion. Yen ($ 24.3 billion), lower than estimates for 3.04 trillion. Yen.
Third-quarter operating profit stood at 784.4 billion yen, higher than estimates for 716.8 billion yen.
Source: Capital
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