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

Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Well, this is clearly not good news for everyone. Ever since the new BMW M4 CS rolled out in Shanghai last week, several reports about its limited production have quickly...
by - April 24, 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