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Yomiuri Shimbun
14-05-2025
- Automotive
- Yomiuri Shimbun
Combined Operating Profits of 6 Japanese Automakers May Decline ¥2 tril. as Result of Trump's Tariffs
AP file photo New Toyota vehicles are parked at Toyota Logistics Service Inc., the company's most significant imported vehicle processing facility in North America, at the Port of Long Beach in Long Beach, Calif., on March 26. The combined operating profits of six major automakers are expected to decline more than ¥2 trillion, according to their outlooks of financial results for the year ending March 31, 2026. The negative outlooks that were released by Tuesday came in the wake of U.S. President Donald Trump's announcement that tariffs would be imposed. The United States is the main market for many Japanese automakers. Honda Motor Co. said on Tuesday that it expects its operating profit will be reduced by up to ¥650 billion in fiscal 2025. 'It is quite a large figure, but this is the worst-case scenario for the company,' Chief Financial Officer Eiji Fujimura said. Toyota Motor Corp. estimated that its costs would increase by ¥180 billion in the two months of April and May as a result of the U.S. tariff measures. Toyota expects its operating profit to decline by more than ¥1 trillion for the fiscal year. The U.S. tariff measures also hurt Suzuki Motor Corp., which does not sell four-wheeled vehicles in the United States. 'We must be prepared for an economic downturn as [the impact of the tariffs] is a global issue,' Suzuki President Toshihiro Suzuki said on Monday. The company said its operating profit will be cut back by ¥40 billion for fiscal 2025 due to reciprocal tariffs imposed on motorcycles in addition to any possible economic downturn. Automakers are rushing to formulate measures to reduce their financial burdens. Toyota is considering shifting some exports to the United States to other countries, while maintaining its domestic production systems. Honda plans to increase the production of certain models in the United States while reducing the number of models exported to the United States from Canada and Japan. Mitsubishi Motors Corp., which does not have a plant in the United States, is considering producing sport utility vehicles jointly with Nissan at the latter's U.S. factory. The business deterioration of the automotive industry, which has a broad production base, would inevitably affect parts makers. It would also be directly linked to the cooling of the Japanese economy as a whole. The United States has claimed that automotive tariffs are off the table in trade negotiations with Japan, raising concern that Japanese automakers may continuously face challenges for the time being.
Asahi Shimbun
08-05-2025
- Automotive
- Asahi Shimbun
Toyota reports booming sales but stays cautious on profit because of various costs
FILE - New Toyota vehicles are stored at the Toyota Logistics Service Inc., their most significant vehicle imports processing facility in North America, at the Port of Long Beach in Long Beach, Calif., Wednesday, March 26, 2025. (AP Photo/Damian Dovarganes) Japan's top automaker Toyota reported record sales for the fiscal year through March on Thursday, but its profit for the latest quarter faltered partly because of a certification scandal. Toyota Motor Corp.'s January-March net profit totaled 664.6 billion yen ($4.6 billion), down from 997.6 billion yen the same period a year ago. Quarterly sales totaled 12.36 trillion yen ($85.9 billion), up from 11 trillion yen. Toyota has been strengthening the testing system of its vehicles after acknowledging wide-ranging fraudulent testing, including the use of inadequate or outdated data in crash tests, incorrect testing of airbag inflation and engine power checks. Akio Toyoda, Toyota's chairman and the grandson of the automaker's founder, has apologized. The wrongdoing did not affect the safety of vehicles already on roads, which include the popular Corolla subcompact and Lexus luxury vehicles. But the scandal has been a major embarrassment for a manufacturer whose brand has been synonymous for decades with quality and attention to detail. For the fiscal year through March, Toyota reported a 4.77 trillion yen ($33 billion) profit, down from 4.94 trillion yen the previous fiscal year. Annual sales reached a record 48 trillion yen ($333.6 billion), up from 45 trillion yen. Toyota is forecasting sales of 48.5 trillion yen ($337 billion) for the fiscal year through March 2026. Its profit forecast was less bullish, citing costs to meet carbon neutrality demands, as well as the impact of President Donald Trump's U.S. tariffs on operating income, which was factored in tentatively at 180 billion yen ($1.3 billion), according to Toyota. That estimate covers April and May, meaning it could grow in coming months. Consolidated vehicle sales for the fiscal year through March totaled 9.36 million vehicles, down slightly from 9.44 million vehicles the previous fiscal year. Cost reduction and marketing efforts worked as pluses countering the negatives, including the production shutdown spanning several months in the U.S. due to quality issues, Toyota officials said. Toyota also said the portion of electric vehicles it was selling was steadily growing. Sometimes Toyota has been criticized as falling behind in the global move toward EVs, partly because it has an extensive lineup of other kinds of green cars, including hybrids.
