Photo: Toyota
As the world’s largest carmaker, Toyota can’t defy the chip shortage and all the other challenges that the companies in this industry sector are fighting with.
And in the last few months, the Japanese giant has been striving to reduce the disruptions of the semiconductor shortage and the lockdowns happening in China, in some cases halting the production at nearly half of its domestic facilities.
Despite all these efforts, Toyota has been hit very hard by the current market conditions, and the latest financial report from the company shows just how worse the whole thing has got lately.
Toyota’s quarterly operating system profit went down no more, no less than 25 percent from 2021, with company executives emphasizing that the business environment “is changing dramatically.” Of course, Toyota’s representatives have also blamed the chip shortage and the rising costs of materials, explaining that it’s impossible to even “look six months ahead” right now.
Toyota’s operating system for the July to September quarter dropped from ¥749 billion (that’s over $5 billion) in 2021 to ¥562 billion ($3.8 billion) this year.
Needless to say, the Japanese carmaker has also lowered the production target for this year. The company originally planned to build a total of 9.7 million vehicles in the fiscal year, but after the temporary suspensions of domestic facilities, it eventually decided to lower the number to 9.2 million vehicles.
Toyota explains in the earnings report (also attached below) that the operating income fell in the majority of developed regions, including North America and Europe. On the other hand, a moderate increase was recorded in Japan and other Asian markets, mostly as a result of the effects of foreign exchange rates.
In Europe, however, the operating income collapsed after Toyota terminated its production in Russia, all despite massive investments in marketing, the company explains. North American operations have been hit hard, particularly because of the rising costs of materials and an increase in expenses.
Despite all these efforts, Toyota has been hit very hard by the current market conditions, and the latest financial report from the company shows just how worse the whole thing has got lately.
Toyota’s quarterly operating system profit went down no more, no less than 25 percent from 2021, with company executives emphasizing that the business environment “is changing dramatically.” Of course, Toyota’s representatives have also blamed the chip shortage and the rising costs of materials, explaining that it’s impossible to even “look six months ahead” right now.
Toyota’s operating system for the July to September quarter dropped from ¥749 billion (that’s over $5 billion) in 2021 to ¥562 billion ($3.8 billion) this year.
Needless to say, the Japanese carmaker has also lowered the production target for this year. The company originally planned to build a total of 9.7 million vehicles in the fiscal year, but after the temporary suspensions of domestic facilities, it eventually decided to lower the number to 9.2 million vehicles.
Toyota explains in the earnings report (also attached below) that the operating income fell in the majority of developed regions, including North America and Europe. On the other hand, a moderate increase was recorded in Japan and other Asian markets, mostly as a result of the effects of foreign exchange rates.
In Europe, however, the operating income collapsed after Toyota terminated its production in Russia, all despite massive investments in marketing, the company explains. North American operations have been hit hard, particularly because of the rising costs of materials and an increase in expenses.
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