Toyota sales go from bad to worse

A photo of a Toyota production line with The Morning Shift graphic at the bottom.

Photo: Toshifumi Kitamura/AFP (fake images)

Toyota is seeing how its sales go from bad to worse As supply chain woes take hold, electric vehicle startup Lordstown Motors saw its first profit, and Boeing workers at three US plants agreed to a new contract. All that and more in the morning shift for August 4, 2022.

First Gear: Toyota Sales Slump 42 percent

It’s a tough time to be an automaker, such as supply chain issueslockdowns caused by the pandemic and the threat of a the recession lingers on all of us. For Toyota, this triple assault has affected its sales. Hard.

After seeing a 30 percent drop in sales volume in 2021, the automaker it has now reported a 42 percent drop in profit for the first quarter of its last fiscal year. Clearly things are not going too well. substantially worse for the Japanese firm. According to Reuters:

“Toyota Motor Corp’s profit fell 42% worse than expected in its first quarter as the Japanese automaker was squeezed between supply constraints and rising costs.

“Operating profit for the three months ended June 30 sank to 578.66 billion yen ($4.3 billion) from 997.4 billion yen in the same period a year ago, Toyota said on Thursday, capping a difficult period. It has repeatedly cut monthly production targets due to global chip shortages and Covid-19 restrictions on plants in China.”

The scale of his earnings drop was “well beyond expectations.” Despite bringing new models to market this quarter, such as the electric BZ4X, rising production costs and parts shortages had a big impact on the company’s sales.

Toyota claimed that rising material prices have cost him 315 billion yen ($2.36 billion).

But the automaker he doesn’t think these bad fortunes will last forever. A Toyota spokesman told Reuters production would pick up in the second half of the year. The company it also maintained its full-year operating profit forecast and reaffirmed its ambitions to produce 9.7 million vehicles this fiscal year.

Gear 2: Reports from Lordstown Motors your first benefit

But while Toyota was witnessing a dramatic drop in revenue, an unlikely EV manufacturer had recorded his first profit. Troubled startup Lordstown Motors reported profit in the first quarter of this year after it sold assets, including its Ohio assembly line, to Taiwanese contract manufacturer Foxconn. Reuters reports:

“The electric vehicle company posted a profit of more than $100 million in the April-June quarter from the sale of Ohio assets, which was driven by the need for financing amid supply chain disruptions across the country. industry and rising material costs.

“That helped him post a net income of $63.7 million, compared to a loss of $108.2 million the year before.”

The electric vehicle The automaker claims its all-electric Endurance pickup will definitely, perhaps, go into production later this year. But earlier this year, the automaker warned that he was burning through cash at an alarming rate.

In 2021, Lordstown Motors had $587 million in reserve, with which he was developing and building the all-electric truck. But by March of this year, that figure had dropped to just $203.6 million.. the sale of its Ohio plant to Foxconn it was thought it would offer a short-term boost to the company as it approached the final hurdles to get its truck on the road.

Third gear: Subaru is Doing good, actually

Lordstown Motors wasn’t the only automaker with something positive to share this morning. Japanese firm Subaru saw its profit rise 24 percent in its latest quarter as tThe company “recovered lost production, increased sales and took advantage of favorable exchange rates.” according to automotive news.

the the site reports that Subaru’s operating profit hit ¥37 billion ($271.3 million) in the fiscal first quarter ending June 30. Subaru said this increase was due to increased sales as it “gradually overcame the limited production of the Covid-19 pandemic and the global shortage of semiconductors”. Of automotive news:

“Global production rose 12% to 205,000 vehicles in the April-June period, helping drive a 12% increase in global sales to 196,000 vehicles. The rally helped Subaru gain ground after struggling to fill the product portfolio amid strong demand for its products.

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

As the company’s fortunes continue to recover following the struggles of the pandemic, Subaru CFO Katsuyuki Mizuma also called off talk of the US recession “some 50,000 backorders” around here.

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

4th gear: Toyota will buy Support your electric vehicle

Earlier this year, Toyota made a great song and dance about their first EV, the BZ4X, which was produced in collaboration with Subaru. The electric SUV has proven quite popular, with Toyota delivering almost 3,000 to customers in the US so far. But its launch has been marred by problems, and now the company is offering to buy back vehicles affected by a recall.

After only two months on sale, Toyota announced the recall of the BZ4X thanks to faulty wheels, which he said could come off the car while driving. Not a great start for Toyota battery powered future.

Now, according to Electrek, the firm is offering to buy back faulty models as its recall continues to fail. The site says:

“Toyota announced the recall of the bZ4X at the end of June, citing the possibility of the new EV’s wheels falling off. Although it applied to every bZ4X produced, as it happened shortly after the car’s launch, it’s still a relatively small recall – just 2,700 vehicles.

“Owners are now receiving letters from the Toyota company detailing what Toyota is offering in exchange for the issues in this recall, and given the scope of the offer, it doesn’t look like the recall is going very well.”

The letter, seen by Electrek, asks owners not to drive their electric vehicles while Toyota looks for a solution to the problem.

While investigating a solution, Toyota will store the recall vehicles and offer cars on loan to affected customers. the car manufacturer It will also reimburse the fuel costs of the borrowed car and even buy the vehicle back if you don’t like the sound of its solutions.

Electrek says the problem also affects Subaru’s Solterrabut deliveries of this model are not believed to have started in the US yet.

5th Gear: Boeing workers agree on new Contract

Just weeks after threatening to strike, Boeing workers at three US factories called off the strike and agreed to a new contract. More than 2,500 workers at the aerospace giant’s sites in the Midwest have voted to ratify a contract that their union says will raise wages “an average of 14 percent over three years and add adjustments for inflation.”

The 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 Mascoutah, Illinois, agreed to the contract earlier this week. According to the site:

“The union said the new contract includes a rejected deal provision requiring company contributions of up to 10% to employees’ 401(k) retirement plans, and added an $8,000 lump sum payment that can go to employee account. . It also has improvements for sick leave and paternity leave, and makes no changes to workers’ health insurance plans, according to the union.

The sites in question focus on Boeing’s military operation. While the company has struggled to fill its commercial aircraft order books amid the ongoing pandemic, its defense and space business has been booming.

AP reports that for the first six months of this year, this sector accounted for about 38% of Boeing’s total revenue.

Reverse: East Happened

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