Analysts at Goldman Sachs’ Japanese arm have a dim forecast for Toyota, projecting an operating loss through the 2013 fiscal year, with Goldman predicting continued sales downturns in the United States, Europe and Japan, which comprise Toyota’s three biggest markets.
Toyota sales, hammered hard by recalls earlier in 2010, are not projected to keep pace with a rapidly growing worldwide vehicle market, despite maintaining a foothold as sales leader in Japan, Thailand and Indonesia. Sales in China and India are poorer than expected and lag behind many smaller rivals.
While the rising value of the yen has been blamed for decreasing profits for a variety of Japanese auto makers, the Goldman Sachs report unequivocally blamed “weak sales volume” as a cause for Toyotas woes. While the auto market has consistently grown between 8 and 9 percent over the past few years (and will continue to grow at that pace), Toyota has experienced sales drops of 15% in 2009 and 4% in 2010.
Goldman Sachs stated that the upcoming Camry launch in 2011, as well as a small car for the Chinese market, will prove crucial to the company’s recovery.
[Source: Ward's Auto]