Toyota intends to raise the price of its vehicles in the US and Europe in order to offset the successive declines in profits that are expected in 2022 because to high manufacturing costs and a lack of dancers.
After reporting a decline in operating profits and net income for the second financial quarter that ended on September 30, when production closure and high raw material costs had an impact on performance, Toyota is reviewing its prices. The company also lowered its production forecast for the fiscal year, which ends on March 31, 2023, to 9.2 million vehicles annually.
According to Reuters, CEOs of the Japanese company warned of the upcoming amendments, and stressed that they are necessary to compensate for the high costs of materials to compensate for the fatal losses in the last quarter, although it will remain unknown.
During the company’s earnings meeting on November 1st, director of public affairs John Nagata said, “We were really scratching our heads in an attempt to find a suitable price level.
We began by being as opposed to expensive cars as we could.
Due to high material costs and inflation, Toyota cars have seen an increase in price on the European continent in recent months, but executives stated that stricter regulations or other price hikes may be likely, and this time the prices will also apply to the United States.
Nagna stated, “We would like to retain the public perception of automobiles as value for money,” in regard to long-standing models like Camry and Corolla, that the scope of rises in Toyota cars will be limited in particular models and sectors.
It is significant that Toyota abandoned its earlier stated objective, to build 9, blaming a lack of conductors.
Despite acknowledging that “the worst thing in the crisis” has passed, the Japanese corporation revealed that there are still bottlenecks that eventually pushed it to, with 7 million automobiles in the current fiscal year. lowering its projected production to just 9.2 million vehicles.
During the first half of the year up until September of last year, Toyota’s profits fell by 23.2% to 1.17 trillion yen (7.9 billion dollars), while operating profits fell by 34.7% to 1.
14 trillion yen during the period from April to September last after sales increased by 14. 4% to tally 17.7 trillion Japanese yen.
Toyota confirmed that it would increase the price of its vehicles in 2022 to make up for its losses.
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