The world's biggest carmaker, Toyota, has increased its predicted losses for 2008.
BACK in December the Japanese firm predicted a loss of 150bn Yen, which would have been the first loss in the company’s 70 years of trading. Due to further information on the scale of the downturn they expect the loss to actually be in the region of 450bn Yen, or £3.35bn.
Believe it or not, but Toyota have not been hit as hard as their American counterparts, but with demand still falling the future isn’t bright.
One problem is due to the changing currency market, with certain economies such as the US’ and ours declining, the profitability of the few sales they have made is falling. The strengthening of the Yen as the American sub-prime market collapsed reduced the profitability of their revenue.
The company has lowered the forecasted sales from 7.54 million to 7.32 million vehicles in 2008/2009. This means that jobs will be going as they sold 8.913 million in the year ending March 2008.
In December, Toyota boss Katsuaki Watanabe said the current downturn was of a size that comes only, "once in a hundred years".
Ed Dooley
06/02/2009
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