[Jack Aylmer]
AS TOYOTA’S PROFITS RECOVER FOLLOWING A SCANDAL LAST YEAR-
THE JAPANESE AUTOMAKER IS USING THAT REVENUE TO MAKE INVESTMENTS IN ELECTRIC VEHICLES.
INCREASING ITS SPENDING ON NEW EV FACILITIES IN BOTH THE U.S. AND CHINA.
IN 2024, TOYOTA APOLOGIZED FOR FRAUDULENT TESTING ON ITS VEHICLES – INCLUDING COLLISION, AIRBAG INFLATION AND ENGINE POWER TESTS-
COSTING THE COMPANY $15.6 BILLION IN MARKET SHARE
BUT NOW PROFITS ARE TRENDING UPWARD AGAIN-
AS THE COMPANY CHARTED RECOVERING SALES GROWTH IN ITS THIRD QUARTER EARNINGS REPORT, RELEASED WEDNESDAY.
THE REPRT SHOWS THAT FISCAL PROFITS IN THE THIRD QUARTER WERE UP 61 PERCENT, CHARTING 14 BILLION DOLLARS, WITH $81 BILLION IN SALES.
WITH SIGNS OF RECOVERY, THE AUTOMAKER WANTS TO SET UP A NEW EV MANUFACTURING FACILITY IN THE CHINESE CITY OF SHANGHAI, WHICH WILL PRODUCE ITS NEW LEXUS ELECTRIC MODELS BY 20-27
THE PLANT IS EXPECTED TO CREATE 100,000 UNITS PER YEAR-
AND ITS DEVELOPMENT WAS MADE POSSIBLE BY A PARTNERSHIP WITH THE LOCAL GOVERNMENT.
MEANWHILE,, TOYOTA IS READYING TO OPEN ITS FIRST U.S. MANUFACTURING PLANT-
A NEW 14-BILLION-DOLLAR FACILITY LOCATED IN NORTH CAROLINA THAT THE AUTOMAKER SAYS WILL MAKE EV, PLUG-IN AND HYBRID BATTERIES FOR CONSUMERS IN THE STATES.
TOYOTA EXPECTS THE PLANT WILL CREATE 5,000 JOBS, AND BEGIN SHIPPING EV BATTERIES IN APRIL.
THESE INVESTMENTS IN ELECTRIC VEHICLES COME JUST A YEAR AFTER TOYOTA’S CHAIRMAN STATED HIS BELIEF THAT EV ADOPTION WILL EVENTUALLY STALL-
FORCASTING THE MARKET SHARE OF THESE MODELS WILL MAX OUT AT AROUND 30 PERCENT.
[ANCHOR]
NOW HIS COMPANY IS BETTING ON ELECTRIC OFFERINGS TO HELP KEEP ITS RESURGENCE GOING.
FOR STRAIGHT ARROW NEWS, I’M JACK AYLMER.
