Toyota sales are going from bad to worse

Photo of the Toyota production line with The Morning Shift graphic along the bottom.

picture: Toshifumi Kitamura / Agence France-Presse (Getty Images)

Toyota sees its sales going from bad to worse As supply chain problems consolidate, EV Startup Lordstown Motors saw its first-ever profit, Boeing workers at three US plants agreed to a new contract. All that and more in morning shift On August 4, 2022.

First gear: Toyota sales plummet 42 percent

It’s a tough time to be a car maker, As supply chain issuesthe closure caused by the epidemic and the danger of a The stagnation still lingers over all of us. For Toyota, this triple attack affected its sales. Difficult.

Having seen a 30 percent drop in sales volume in 2021, the automaker It has now reported a 42 percent drop in earnings for the first quarter of its last fiscal year. Obviously, things are not going well so far Worse for the Japanese company. according to Reuters:

Toyota Motor Corp.’s profit fell a worse-than-expected 42% in the first quarter, as the Japanese automaker was caught between supply constraints and rising costs.

Toyota said Thursday that operating profit for the three months ended June 30 fell to 578.66 billion yen ($4.3 billion) from 997.4 billion yen in the same period last year. It has repeatedly lowered monthly production targets due to global chip shortages and Covid-19 restrictions on factories in China.”

The size of its declining earnings was “far beyond expectations”. Despite the introduction of new models to the market this quarter, such as the electric BZ4X, higher production costs and a shortage of parts had a major impact on the company’s sales.

Toyota claimed it Material price hikes cost 315 billion yen ($2.36bn).

But the car maker I don’t think these bad fortunes will be around forever. A Toyota spokesperson told Reuters that production will rise in the second half of the year. company It also stuck to its full-year operating profit forecast and reaffirmed its ambition to produce 9.7 million vehicles this fiscal year.

Second gear: Lordstown Motors reports Her first win

But while Toyota was experiencing a sharp decline in income, it was likely to be an electric car was a maker She recorded her first ever profit. Troubled start-up Lordstown Motors reported a profit in the first quarter of this year after it sold assets including an assembly line in Ohio to Taiwanese contract manufacturer Foxconn. Reuters Reports:

The EV company posted a gain of more than $100 million in the April-June quarter from the sale of assets in Ohio, which was driven by the need for funding amid industry-wide supply chain disruptions and rising material costs.

This helped generate a net income of $63.7 million, compared to a loss of $108.2 million in the previous year. ”

EV The manufacturer claims that the all-electric endurance pickup truck will definitely put it into production later this year. But earlier this year, the automaker She warned that she was burning money at an alarming rate.

In 2021, Lordstown Motors had a reserve of $587 millionWhich was working on the development and construction of the all-electric truck. But by March of this year, that number had dropped to just $203.6 million. The Selling its Ohio plant to Foxconn It was thought to provide short-term support to the company as it neared final hurdles to get its truck on the road.

Third gear: Subaru Island Do good, actually

Lordstown Motors wasn’t the only automaker with something positive to share this morning. The Japanese company Subaru saw its profits rise by 24 percent in the fourth quarter of last yearThe company “restored lost production, increased sales and benefited from favorable exchange rates,” to me Car News.

The The site reports that Subaru’s operating profit came to 37 billion yen ($271.3 million) in the first fiscal quarter ending June 30. Subaru He said this The increase was due to the increase in sales Because it has “gradually overcome the squeezed production of the Covid-19 pandemic and the global shortage of semiconductors.” From Car News:

“Global production increased 12 percent to 205,000 vehicles from April to June, helping boost global sales by 12 percent to 196,000 vehicles. The recovery helped Subaru gain a foothold after it struggled to fill the product pipeline amid strong demand for its products.

“However, the biggest boost to Subaru’s earnings came from surprising gains from the dramatic weakening of the Japanese yen against foreign currencies, especially the US dollar.”

As the company’s fortunes continue to rebound after the pandemic struggle, Subaru CFO Katsuyuki Mizuma also called off talk of a recession in the United States, and Mizuma claimed that demand for Subaru vehicles “remains strong” in America, and said the company is “racing to fill about 50,000 reorders.” “over here.

Mizuma cautioned that limited production remains Subaru’s biggest obstacle.

Fourth gear: Toyota will buy Return your EV

Earlier this year, Toyota made Great song and dance around her first EV, BZ4X, which was produced in partnership with Subaru. The electric SUV has proven to be very popular, and Toyota has so far delivered nearly 3,000 to its US customers, but its rollout has run into problems, and now the company Offers buy-back of vehicles affected by the recall.

Only two months after the sale, Toyota announces the recall of the BZ4X Thanks to the faulty wheels, which were said to have slipped out of the car while driving. Not a great start for Toyota Battery operated receiver.

Currently, According to ElectrekThe company offers to buy back defective models while the return process continues to fail. The site says:

Toyota announced the recall of the bZ4X in late June, citing the possibility of the new EV wheels falling off. Although it applies to all produced bZ4X cars, given that it happened shortly after the car was released, it is still a relatively small recall – only 2,700 cars.

“Owners are now receiving letters from Toyota detailing what Toyota is offering in exchange for this recall issue, and given the scope of the offering, the recall doesn’t appear to be going well.”

The letter, seen by Electrek, asks owners not to drive their electric vehicles while Toyota seeks to solve the problem.

During the repair investigation, Toyota Store will be called Vehicles and loaner cars to affected customers. auto maker He will also reimburse the fuel costs for the loaned car, and will buy back the car if you don’t like the sound of their solutions.

Electric says The problem also affects the Solterra in SubaruHowever, deliveries of this model are not believed to have commenced in the United States yet.

Fifth gear: Boeing workers agree to new a necklace

Just weeks after threatening to strike, Boeing workers at three American factories called off the strike and agreed to a new contract. More than 2,500 workers at the airline giant’s Midwest sites voted to endorse a contract that their union said would raise wages an average of 14 percent over three years and add inflation adjustments.

Associated Press reports That members of the International Association of Machinists and Aerospace Workers at Boeing plants in St. Louis and St. Charles, Missouri, and Mascotta, Illinois, agreed to the contract earlier this week. According to the site:

The union said the new contract included a clause in the rejected deal calling for company contributions of up to 10% to employee 401(k) retirement plans, and added a lump sum of $8,000 that could be entered into the employee’s account. . It also has improvements to sick and parental leave, and is not making any changes to workers’ health insurance plans, according to the union.”

The sites in question center around the Boeing military operation. As the company struggles to fill order books for its commercial planes amid the ongoing pandemic, its defense and aerospace business has been thriving.

The Associated Press reported that during the first six months of this year, the segment accounted for about 38% of Boeing’s total revenue.

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