Strong yen prompts Toyota to change currency assumption

Article by Christian A., on October 28, 2010

Toyota Motor Corp.’s President Akio Toyoda said that it is likely to revise its currency assumption for its full-year profit forecast to about 80 yen to the US dollar from 90 yen. In an interview with TV Tokyo, Toyoda said that he senses an “extreme sense of crisis” because of the strengthening currency.

He said that even if Toyota increases overseas auto assembly to lessen the negative currency impact from exports, Toyota seeks to maintain annual domestic production of about 3 million cars.

Last fiscal year, Toyota, the world’s largest automaker, had built 3.2 million cars in Japan out of 7.3 million units throughout the world. The strengthening Japanese currency reduces the value of repatriated profits from exports.

The yen, which is near a 15-year high, has gained 15% against the dollar and about 13% against the euro since the April 1 start of Toyota’s fiscal year. On Oct. 26, the yen traded at 81.53 to the dollar in New York.

Efraim Levy, automotive equity analyst at Standard & Poor’s in New York, said that the strong yen would clearly have an impact on earnings. He added that it “really comes down to where you think it’s going to go.” A “buy” is how he rates Toyota’s American depositary receipts. [via autonews - sub. required]

Topics: toyota

If you liked the article, share on:

Comments

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries