Covid-19: Toyota profit down by 80% as sales fall by $14 billion

Covid-19: Toyota profit down by 80% as sales fall by $14 billion

- The outbreak of the coronavirus has led to a fall in profits for Toyota Motor Corporation

- The carmaker reported that it has recorded a $14 billion drop in car sales

- It, however, reported that it expects an upsurge in its profits in 2021

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Car manufacturing company, Toyota Motor Corporation, has reported an 80% fall in its profit level.

The drop comes at a time when Japan’s biggest automaker is grappling with the economic impact of the coronavirus.

Briefly.co.za understands that the spread of the virus has also led to a $14 billion drop in car sales.

Analysts have concluded that there is the likelihood of limited output as a result of fractured supply chains and social distancing measures recorded at plants.

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As per a report by myjoyonline.com, Akio Toyoda, the president of the company, stated that:

“The coronavirus has dealt us a bigger shock than the 2008 global financial crisis. We anticipate a big drop in sales volumes, but despite that we are expecting to remain in the black. We hope to become a leader of the country’s economic recovery.”

In 2019, Toyota sold vehicles to the tune of $10.46 billion and expected to recover in 2021.

The company’s main rivals, Honda Motor Co Ltd and General Motors have, however, refrained from issuing forecasts.

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Source: Briefly.co.za

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