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Toyota Raises Profit Forecast Despite Production Cut

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Although Toyota is struggling with chip shortages that have forced production capacity to be reduced worldwide, the car group is adjusting its profit forecast for this current financial year upwards.

 

Toyota expects a profit of 2.49 trillion yen this year, the company reports Thursday. That is significantly higher than an earlier forecast, when the company expected profits of 2.3 trillion yen in the fiscal year to March 2022.

However, according to the revised forecast, turnover will remain at the same amount of 30 trillion yen. “Production volume declined worldwide, but our suppliers, factories and dealers have made great efforts to deliver as many cars as possible,” said the world’s best-selling automaker.

The fact that Toyota seems to be less bothered by the chip shortages has to do with the company’s planners, among other things. Toyota uses an ingenious system to avoid surprises in terms of stocks.

In addition, the company also has close ties with suppliers, including holding interests in some of them. This helps Toyota in times when the demand for parts exceeds the supply.

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