COVID-19 leads to 80% drop in Toyota’s profit; car sales fall by $14 billion

COVID-19 leads to 80% drop in Toyota’s profit; car sales fall by $14 billion

- The outbreak of the coronavirus has led to a fall in profit level of car manufacturing company, Toyota Motor Corporation

- The carmaker reported that it has recorded a $14 billion drop in car sales

- It, however, reported that it expects an upsurge in its profits in 2021

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Car manufacturing company, Toyota Motor Corporation, has reported an 80% fall in its profit level.

The drop, which is the lowest in nine years, comes at a time when Japan’s biggest automaker is grappling with the economic impact of the coronavirus.

YEN.com.gh understands that the spread of the virus has also led to a $14 billion drop in car sales.

READ ALSO: COVID-19: AngloGold increases cashflow but loses 11000 ounces of production

Analysts have concluded that there is the likelihood of limited output as a result of fractured supply chains and social distancing measures recorded at plants.

Per a report by myjoyonline.com, Akio Toyoda, the president of the company, stated that “the coronavirus has dealt us a bigger shock than the 2008 global financial crisis. We anticipate a big drop in sales volumes, but despite that we are expecting to remain in the black. We hope to become a leader of the country’s economic recovery.”

In the year 2019, Toyota sold vehicles to the tune of $10.46 million and expected to recover in the year 2021.

The company’s main rivals, Honda Motor Co Ltd and General Motors have, however, refrained from issuing forecasts.

YEN.com.gh earlier reported that Kosmos Energy has reported a loss of $183 million in the First Quarter of the year 2020.

YEN.com.gh understands that the assets impairments of Kosmos Energy in the same period totaled $151 million.

The oil company’s report comes at a time when the COVID-19 has led to a fall in crude oil prices on the world market.

READ ALSO: COVID-19: MTN Ghana postpones AGM and announces suspension of payment of dividends

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Source: Yen

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