Toyota Likely to Fall Short of Its 10 Million Vehicle Goal

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By Trey Thoelcke Published
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After struggling through the financial crisis, massive recalls that harmed its reputation, and an earthquake and severe floods that crippled production, Toyota Motor Corp. (NYSE: TM) seemed to be back on track with its goal to produce 10 million vehicles this year. That would have been a first for the auto industry worldwide.

But it looks that 10 million vehicle goal may be out of reach, at least for this year. The Japanese auto maker faces two main obstacles: plunging sales in China and a suspended production in South Africa.

The territorial dispute between China and Japan over a set of remote islands has prompted an anti-Japan backlash in China. Toyota’s sales  dropped by nearly half in September, compared with the same month of last year. The ill will could result in a production loss of up to 126,000 vehicles in the fourth quarter, some analysts predict.

A Toyota plant in Durban, South Africa, was idled four days by a strike by workers earlier this month. Production was suspended again this week due to a strike at a supplier of seats and door parts. The company has production capacity to make 220,000 vehicles a year in South Africa.

Toyota releases production numbers for September next Friday, and they like will show it is losing momentum, perhaps pushing that 10 million vehicle goal just out of reach for now.

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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