Japan’s series of unfortunate events took its toll on Toyota
11. June 2011
What a series of unfortunate events for Japan. One of the wealthiest country in Asia has had dramatic fall outs this year when Mother Nature decided to roar across the island nation. The land of the rising sun will have a long road to track before they see the daylight to full recovery.
But while they’re at that, one of the biggest carmakers in the world is speeding its way plummeting to lose its top post.
The automaker claims that the 9.0 monster earthquake made supply problems. What makes it worse is that the strength of their local currency against dollar drove expensive domestic productions.
Toyota Motor Corporation is expecting drastic losses worth more than $1 billion of net profits for the year 2012 compared to this fiscal year due to the disruptions that made parts of Japan suffer in wreckage.
The company further forecasted that their consolidated net income will plunge by 31 percent amounting to at least $3.4 billion this year extending up to March 31 next year compared to the $5 billion net income in the previous fiscal year.
Japanese yen is currently trading around 80 for a US dollar which is described as “beyond limit” and Toyota’s president Okio Toyoda said, “We’d like to ask the government to correct currency rates as soon as possible,” to level the playing field of competing car makers.
Global sales of the company is expected to fall by 1% from 18.99 trillion yen to 18.6 trillion yen. Because of this, America’s General Motors is expected to take over Toyota’s position as the largest automaker in the world.
Toyota brushed off this looming fall from their number one status by saying, “We don’t see it as necessary to be the largest automaker in the world. The most important thing is creating a stable business base” to stress that the company’s focus is on quality.
Between late 2009 and early 2010, Toyota has been on a slump of crisis when it recalled almost 9 million cars due to accelerator and brake defects. Thus, analysts say that the company has been exposed of its thin operations compared it its rivals partly because of the quality-issue related fiasco.
Photo credits to http://topnews.net.nz