Toyota Motor expected its profit to drop by 80% to its lowest level in 9 years.
According to Reuters, the largest Japanese car maker is suffering from the impact of the spread of the new Corona virus, which has affected global demand for cars. The damage Toyota expects to profit highlights the difficulties auto manufacturers face in recovering from the pandemic in the coming months, with gradually starting to resume work in factories, after having Restrictions on public movements to curb the spread of the disease have prevented workers in many countries from going to work. The sector expects production to be limited due to the disruption of supply chains and the measures of social divergence to be followed in factories in addition to weak demand, as job losses and concerns about the economic downturn will put pressure on Consumer spending on big purchases for goods like cars. Toyota, one of the most profitable car manufacturers in the world, expects to see a decline in global auto sales of up to 1.5 trillion yen ($ 13.95 billion) this year. Largely due to the pandemic, but still expects to make operating profits of 500 billion yen in the year ending March. The head of the company, Akio Toyoda, said in a press statement via the live broadcast on the Internet, that the Corona virus caused us a greater shock than that caused by the global financial crisis in 2008. p> Toyota expects Toyota to post operating profit of 2.44 trillion yen in the fiscal year ending in March, reaching the lowest level since the 2011/2012 fiscal year. The company expects global auto sales to record 8.9 million units, the lowest level in nine years, compared to 10.46 in the past fiscal year. But she expected sales to recover to 2019 levels next year.
