Toyota (NYSE: TM) cuts its earnings forecast for the next year by 52%. It face a lack of parts from flooded industrial regions of Thailand. The value of the yen has also eaten into profits, as it has for many other Japanese exporters.
Toyota’s troubles do not end with the yen and Thailand. The No.1 Japanese car company’s production has barely recovered from the March earthquake. Market share in the US has dropped because of lack of supply and massive recalls.
Toyota has also not been able to break the strangle hold that GM (NYSE: GM) and VW have in China. The world’s largest vehicle market produced 16 million car and light truck sales last year. A lack of factory activity because of Thailand will make it even harder for Toyota to close any gap.
Toyota’s market share in the world’s No.1 market–the US– has dropped from 18% four years ago, when it challenged Ford in US sales, to no better than 12% most months