TOKYO (AFP): Japanese giant Toyota has forecasted a steep decline in profit by 80 percent to its lowest in nine years, as it suffers from the impact of coronavirus, which has sapped global demand for vehicles.
The manufacturer said that its operating profit for the fiscal year ending in March 2021 was expected to dive 79.5 percent and declined to even give a forecast for net profit.
Toyota also forecasted a near 20 percent drop in annual sales, with every region suffering a slump, led by Europe and Asia.
The car giant further said that the spread of the disease had affected it in a number of ways: it has had to mothball several plants around the world, parts supply chains are crippled and dealerships are either closed or facing sales slumps.
In this regard, Toyota President Akio Toyoda in a statement today (Tuesday) said, “The impact of COVID-19 is wide-ranging, significant and serious, and it is expected that weakness will continue for the time being.”
The President further said, “The coronavirus has dealt us a bigger shock than the 2008 global financial crisis.”
“I think we are all prepared for the task. With these earnings, we stand at the starting point of Toyota’s rebirth,” he added.
Global automakers have begun to gradually resume operations factories after curbs on public movement prevented workers in many countries from commuting. However, they face weak demand as job losses and concern about an economic downturn weigh on consumer spending.
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