Collapsing market for big pickups and sports utility vehicles cause Toyota worldwide net income to fell 28 percent for the quarter
United States collapsing market for big pickups and sport utility vehicles also hit the Japan’s leading automaker Toyota Motor in second quarter. On Thursday Toyota admit that it has faced biggest shortfall in its profit in about last five years as its worldwide net income decreases 28 percent for the quarter. According to it North America’s market turn off regarding its Tundra pickup truck and production and sales of its sports utility vehicles condition is responsible for this turn down.
In last year quarter its net income was 491.5 billion yen while in this year quarter it fell down to 353.7 billion yen, or about $3.2 billion. Revenue fell 4.7 percent, to 6.22 trillion yen for June 30 ended three month quarter. In July U.S. market was down by 11 percent in spite of this sales in Toyota have fallen around 7 percent. On the other side General Motors reported $15.5 billion loss while Ford Motor Company showed $8.7 billion loss.
Toyota showed defenseless regarding the shift of American consumers towards more fuel-efficient small cars from large vehicles. Some of its most modern selling models, like the Prius gas-electric hybrid car were on short supply that also affected the company.
During the quarter the automaker also enhanced it market share to 17.4 percent in U.S. still it faced fall in revenue. Toyota reported improved sales in Asia and South America but slower sales for the quarter in Japan and Europe.
