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Toyota sales are going from bad to worse

A photo of the Toyota production line with The Morning Shift graphic at the bottom.

image: Toshifumi Kitamura / AFP (beautiful pictures)

Toyota is seeing its sales go from bad to worse as supply chain issues unfolded, EV startup Lordstown Motors saw its first profit ever, and Boeing workers at three US factories have agreed on a new contract. All that and more in Morning shift for August 4, 2022.

First gear: Toyota sales fall 42 Percent

It’s been a tough time being an automaker, as supply chain issueslockdown caused by the pandemic and the threat of a The recession lingers on all of us. For Toyota, this three-pronged attack has hit its sales. Hard.

After seeing a 30% drop in sales in 2021, the automaker now reported a 42% drop in profits in the first quarter of its most recent fiscal year. Obviously, things are not going well basically worse for the Japanese company. Based on Reuters:

“Toyota Motor Corp’s profit fell 42% from expectations in the first quarter as the Japanese carmaker was squeezed between supply constraints and rising costs.

“Operating profit for the three months ended June 30 fell to 578.66 billion yen ($4.3 billion) from 997.4 billion yen a year ago, Toyota said on Thursday, a difficult period. It has repeatedly cut its monthly output target due to global chip shortages and Covid-19 restrictions on factories in China.”

The size of its plummeting profits is “far beyond expectations.” Despite bringing new models to market this quarter, such as the electric BZ4X, rising production costs and a shortage of spare parts have had a big impact on the company’s sales.

Toyota stated that The increase in raw material prices has cost 315 billion yen ($2.36 billion).

But the car company I don’t think these bad luck will last forever. A Toyota spokesman told Reuters that output will increase in the second half of the year. Company also maintained its full-year operating profit forecast and reaffirmed its ambition to produce 9.7 million vehicles this fiscal year.

2nd gear: Lordstown Motors report Its first profit

But while Toyota is seeing a significant drop in earnings, an electric car is unlikely The manufacturer has posted its first profit. Struggling start-up Lordstown Motors reported a profit for the first quarter of this year after selling assets including its assembly line in Ohio to Taiwanese contract manufacturer Foxconn. Reuters report:

“EV Company recorded a profit of more than $100 million in the April-June quarter from property sales in Ohio, which was driven by funding demand amid industry-wide supply chain disruptions. period and raw material costs increase.

“That gave it a net income of $63.7 million, compared with a loss of $108.2 million a year earlier.”

EV The manufacturer claims its all-electric Endurance pickup truck will definitely enter production later this year. But earlier this year, the automaker warned that it was burning cash at an alarming rate.

In 2021, Lordstown Motors has $587 million in reserves, with which it is developing and building all-electric trucks. But by March of this year, that number had dropped to just $203.6 million. The sold factory in Ohio to Foxconn is expected to provide a short-term boost to the company as it nears its final hurdles to getting its truck on the road.

3rd gear: Subaru Is Well done, in fact

Lordstown Motors isn’t the only automaker with something positive to share this morning. Japanese company Subaru saw its profits rise 24% in the most recent quarter as itHis company “restored lost production, increased sales and cashed in at favorable exchange rates” based on Automotive News.

The The website reported that Subaru’s operating profit reached 37 billion yen ($271.3 million) in the first fiscal quarter ended June 30. Subaru say this increase is the result of increased sales as it “gradually overcomes limited production due to the Covid-19 pandemic and global semiconductor shortages.” Are from Automotive News:

“Global production increased 12% to 205,000 vehicles in the April-June period, helping worldwide sales increase 12% to 196,000 vehicles. The recovery has given Subaru a foothold after struggling to fill its product supply pipeline amid a surge in demand for its products.

“However, the biggest boost to Subaru’s earnings came from the significant weakening of the Japanese yen against foreign currencies, particularly the US dollar.”

As the company’s fortunes continue to recover from the struggles of the pandemic, Subaru CFO Katsuyuki Mizuma also quashed talk of a recession in the US Mizuma stated that demand for Subaru vehicles “remains”. still strong” in the US and said the company is “racing to fill about 50,000 back orders” here.

Mizuma warns that limited production remains Subaru’s biggest hurdle.

4th gear: Toyota will buy Back to your EV

Earlier this year, Toyota made a big song and dance to its first EV, BZ4X, produced in collaboration with Subaru. The electric SUV has proven to be quite popular, and Toyota has delivered nearly 3,000 units to customers in the US to date. is offering to buy back the vehicles affected by the recall.

After only two months of selling, Toyota announces BZ4X recall due to a faulty wheel, it indicates that it may be thrown out of the vehicle while you are driving. Not a great start for Toyota battery-powered future.

The current, according to Electrek, the company is offering to buy back the defective models as recalls continue to falter. The website says:

“Toyota announced the recall of the bZ4X at the end of June, citing the possibility of a new EV wheel falling off. Although it has been applied to all bZ4Xs produced, as it occurred shortly after the vehicle’s launch, it is still a relatively small recall – just 2,700 vehicles.

“Now, owners are receiving letters from Toyota detailing what Toyota is offering in exchange for the hassle of this recall, and given the scope of the offer, it seems the recall didn’t go well.”

The letter, seen by Electrek, asks owners not to drive their EV while Toyota works to fix the problem.

While investigating a fix, Toyota will store vehicles and deliver vehicles to affected customers. Car manufacturer will also reimburse the fuel cost of the loaned car, and will even buy the car back if you don’t like the sound of its solutions.

Electrek said The problem also affects Subaru’s Solterrabut it is not yet believed that deliveries of this model have begun in the US.

5th Gear: Boeing Workers Agree New Contract

Just weeks after threatening strike action, Boeing workers at three US factories shut down industrial operations and agreed to new contracts. More than 2,500 workers at the aerospace giant’s sites in the Midwest voted to approve the contract, which its union said would increase wages “by 14% on average over three years and add inflation adjustment.” broadcast”.

Associated Press reports that members of the International Association of Machinists and Aerospace Workers at Boeing plants in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois, agreed to the contract earlier this week. By page:

The union said the new contract included a provision from the rejected agreement calling for a company contribution of up to 10% to an employee’s 401(k) retirement plan, and it added a one-time payment. times $8,000 can be transferred to the employee’s account. . It also includes improvements to sick and childcare leave, and does not change workers’ health insurance plans, according to the union. ”

The sites mentioned revolve around Boeing’s military activity. While the company struggles to fulfill orders for its commercial jets amid the ongoing pandemic, its defense and space business is booming.

The AP reports that in the first six months of this year, the sector accounted for about 38% of Boeing’s total revenue.

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