Photo: sulekha.com
Toyota was the automaker that probably saw the biggest losses due to the March earthquake that crippled Japan and wrecked infrastructure. But a recent report from Bloomberg sheds light on how badly the strong Yen is hurting the Big T and other automakers that have to export.
In the fiscal year ending on March 31, 2012, Toyota’s profits will have fallen by JPY250 billion ($3.3 billion at the current exchange rate), based on an average of five industry analysts.
Two out of every five cars made by Toyota come from Japan, and the only solution is to shift production elsewhere, much like Honda and Nissan are doing.
“We are struggling. We are facing a difficult time. We have to reduce our production costs to compensate for the currency situation,” Toyota Chief Financial Officer Satoshi Ozawa said recently at one of the automaker’s European factories.
Two out of every five cars made by Toyota come from Japan, and the only solution is to shift production elsewhere, much like Honda and Nissan are doing.
“We are struggling. We are facing a difficult time. We have to reduce our production costs to compensate for the currency situation,” Toyota Chief Financial Officer Satoshi Ozawa said recently at one of the automaker’s European factories.
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