Toyota engine (MT – Free Report) recently announced the decision to halt operations on seven production lines at five factories in Japan next month due to supply chain bottlenecks, semiconductor chip shortages and the COVID-19 pandemic.
The Japanese auto giant said the latest suspension at domestic factories will cut production by around 20,000 vehicles due to delays in the supply of semiconductors and other parts. Nonetheless, the automaker continues to stick to its global production target of 9 million vehicles for the fiscal year ending March 2022. In addition, Toyota’s January 2022 production plan to build 800,000 vehicles worldwide, announced in mid-December, will also be implemented.
The production line of sport utility vehicles such as the RAV4 and Harrier at Toyota’s Takaoka plant will be suspended for seven days, including two days of suspension due to the holiday season. Two lines at Toyota Auto Body’s Yoshiwara plant, one line each at Inabe and Fujimatsu plants, and two lines at Toyota Industries’ Nagakusa plant will also shut down two days of production during the holidays.
This is not the first time Toyota has continued production downtime at factories amid the global auto microchip shortage and supply chain issues that continue to plague automakers around the world. In December, Toyota extended production shutdowns at some factories in Japan due to a shortage of components shipped from parts factories in Southeast Asia, where COVID-19 lockdowns disrupted production.
Recently, Toyota announced plans to invest 4 trillion yen ($ 35 billion) to line up 30 battery-electric vehicles (BEVs) by 2030. It also aims to increase global sales of battery-electric vehicles by 3.5 million units per year by 2030. By the end of the decade, the automaker allocated an additional 4 trillion yen to develop other electrified vehicles, including hybrid and battery-powered vehicles. combustible. Toyota will also increase its investment in battery development to 2,000 billion yen ($ 18 billion) against 1.5 trillion yen previously proposed. This great push for electric vehicles is in line with the company’s efforts to tap into the growing market for zero-emission vehicles.
The automaker also revealed that it produced 627,452 vehicles in October, up from 845,107 units produced a year ago.
Rank of Zacks and choice of keys
Toyota currently wears a Zacks Rank # 3 (Hold). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
Some top-ranked stocks in the automotive space include Goodyear tire (GT – Free report) and You’re here (TSLA – Free Report), both of which have a Zacks rank of 1 and Harley davidson (PORK – Free Report), bearing a Zacks Rank of 2 (Buy).
Goodyear has an expected profit growth rate of 196.86% for the current year. Zacks’ consensus estimate for current year earnings has been revised up 80 cents in the past 60 days.
Goodyear has beaten Zacks’ consensus estimate for earnings over the past four quarters. GT has a surprise earnings for the last four quarters of 228.45%, on average. Its shares have risen 92.1% in the past year.
Tesla has an expected profit growth rate of 166.96% for the current year. Zacks’ consensus estimate for current year earnings has been revised up 13 cents in the past 60 days.
Tesla has beaten Zacks’ consensus estimate for earnings in three of the past four quarters while missing once. TSLA has a surprise earnings over the past four quarters of 25.38%, on average. Its shares have risen 45.3% in the past year.
Harley-Davidson has an expected earnings growth rate of 34.92% for the current quarter. Zacks’ consensus estimate for current year earnings has been revised up 34 cents in the past 60 days.
Harley-Davidson has beaten Zacks’ consensus estimate for earnings in three of the past four quarters while missing once. HOG has a surprise negative earnings over the past four quarters of 138.45%, on average. Its shares have fallen 6.1% in the past year.