Auto Knight

Toyota Sees Loss

by Darren

Toyota has announced they’re expecting a loss when they reporting earnings in April. The company is facing a global downturn in demand that has crushed margins. This is the first time the company has reported a loss from operations since 1950.

Japanese exports have suffered because of currency exchange rates. The rising value of the yen sent Japan’s trade deficit shooting up to $2.5 billion in November, according to the Japanese government. Exports fell 27% on a month-over-month basis.

The company is suffering from a double-whammy of lower global sales volumes, and a soaring yen. They’ve lost $2.2 billion this year alone on currency conversion.

In a further sign of the times, the company also said they’ll be shuttering their proposed Toyota Prius plant that was to open in Blue Springs, Miss. The plan is scrapped indefinitely.