Toyota says looming investment to weigh on profit after blockbuster fourth quarter [Globe and Mail, The (Toronto, Canada)]
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Source: Globe and Mail, The
While Toyota has been boosted by a weaker yen, it has also been a big beneficiary of cooling demand for electric vehicles in some markets, such as the United States, where more customers are embracing petrol-electric hybrids, Toyota's traditional strength. The Japanese automaker was long criticized for pursuing its “multi-pathway” strategy championing hybrids and plug-in hybrids as well as EVs, a stance that is increasingly looking prescient given consumer concerns about EV driving ranges and the availability of charging stations. Toyota expects operating income to total 4.3 trillion yen in the year to March 2025, a 20 per cent decline, as it invests in “human capital” – including providing support for labour costs at suppliers and dealers – as well as in its multi-pathway strategy. “We'll make investments in order to firmly protect the supply chain,” Toyota CEO Koji Sato told a news conference after the earnings release. “Even though our operations are run very efficiently,
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