Toyota Raises Capital Spending 12% to Record 1.4 Trillion Yen
11-08-05, 08:55 AM
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Toyota Raises Capital Spending 12% to Record 1.4 Trillion Yen
Toyota Raises Capital Spending 12% to Record 1.4 Trillion Yen
Nov. 7 (Bloomberg) -- Toyota Motor Corp., the world's biggest carmaker by value, said it will boost capital spending by 12 percent to a record 1.4 trillion yen ($11.9 billion) from its May forecast, to increase production in Japan and abroad.
``There is more demand for our vehicles around the world than we expected, and we can't stand a situation where we won't have enough vehicles to sell,'' Toyota Senior Managing Director Takeshi Suzuki said to reporters on Friday in Tokyo.
President Katsuaki Watanabe, 63, is building more Corollas and Camrys to meet a global 2006 sales target of 8.5 million units. Toyota aims for a global market share of 15 percent in the next decade from its current 12 percent as General Motors Corp. and Ford Motor Co. scale back production. Toyota is opening new plants in North America, Europe and Asia.
``It's an expansion period for Toyota and its performance outlook for the second half is quite strong,'' said Koji Endo, an analyst at Credit Suisse First Boston in Tokyo after the results were announced on Friday. ``What's amazing is that Toyota is able to proceed with several big projects all at once globally.''
The Toyota City, Japan-based automaker said on Friday it had its largest profit in six quarters as the company expanded sales globally. Net income rose 2.1 percent to 303.7 billion yen ($2.6 billion) in the second quarter ended Sept. 30, from a year earlier, the automaker said. Sales rose 10 percent to 4.97 trillion yen in the quarter.
The world's second-biggest automaker will probably have a fourth consecutive year of record profit this fiscal year, said Suzuki, without giving a specific forecast.
Shares of Toyota, which have risen 30 percent this year, rose 0.9 percent to 5,400 yen in Tokyo on Friday.
Boosting Output
Toyota said it will boost vehicle and parts production at its five factories in Japan, including one in Hokkaido, in northern Japan, two in Kyushu, southern Japan, one in Tohoku, north of Tokyo, and at Kanto Auto Works Ltd., its vehicle assembly affiliate.
The expansion at five factories will boost Toyota and its luxury brand Lexus' domestic production by 8.6 percent to 3.8 million units in 2006, from 3.5 million units now, the company said. Affiliates Daihatsu Motor Co. and Hino Motors Ltd. are also expanding, which will add another 500,000 to 600,000 units of capacity.
Toyota, which sells four of every 10 vehicles on Japan's roads, will release the redesigned RAV4 sport-utility vehicle on Nov. 14, and another four unspecified new and redesigned models in the fiscal fourth quarter, Suzuki said.
``The expansion at home will start as early as this month for some of the factories because it's easier and faster for us to work on the Japanese plants first,'' Suzuki said.
Global Expansion
The maker of Lexus SC and IS sedans is building more vehicles abroad, which helps it counter a stronger yen and deliver models faster to their dealers.
Toyota is opening its sixth North American assembly plant next year in Texas, which will increase its production capacity in the region to 1.71 million units from 1.51 million units now, Toyota said. With a new factory in Canada opening in 2008, its total production capacity in North America, including Mexico, will be at 1.81 million units, the company said.
``The increase of capital expenditure is necessary, but the amount is quite big, so that's a bit of a concern,'' said Koichi Sugimoto, an analyst at Nomura Securities Co.
Nissan Motor Co. opened a new factory in Canton, Mississippi in 2003, its first North American factory in 20 years, while Honda Motor Co. finished doubling capacity at its Alabama factory last month.
Europe, IMV
In Europe, Toyota will add 30,000 units of capacity to its current 775,000 units, by expanding its factory in Valenciennes, France. The company is reacting to demand for a new version of the Yaris compact, sold as the Vitz in Japan. The automaker plans to open its first factory in Russia which will add 50,000 units to European production. By 2007, Toyota will have a total capacity of 855,000 units in Europe, the automaker said.
Watanabe worked on the carmaker's so-called IMV project, or the International Multi Purpose Vehicle. The automaker will have a total production of 700,000 units in 2006.
IMV makes vehicles in emerging markets such as Indonesia, Thailand, South Africa and Argentina, to take advantage of tax breaks to accelerate production and cut development costs.
http://www.bloomberg.com/apps/news?p...top_world_news
Nov. 7 (Bloomberg) -- Toyota Motor Corp., the world's biggest carmaker by value, said it will boost capital spending by 12 percent to a record 1.4 trillion yen ($11.9 billion) from its May forecast, to increase production in Japan and abroad.
``There is more demand for our vehicles around the world than we expected, and we can't stand a situation where we won't have enough vehicles to sell,'' Toyota Senior Managing Director Takeshi Suzuki said to reporters on Friday in Tokyo.
President Katsuaki Watanabe, 63, is building more Corollas and Camrys to meet a global 2006 sales target of 8.5 million units. Toyota aims for a global market share of 15 percent in the next decade from its current 12 percent as General Motors Corp. and Ford Motor Co. scale back production. Toyota is opening new plants in North America, Europe and Asia.
``It's an expansion period for Toyota and its performance outlook for the second half is quite strong,'' said Koji Endo, an analyst at Credit Suisse First Boston in Tokyo after the results were announced on Friday. ``What's amazing is that Toyota is able to proceed with several big projects all at once globally.''
The Toyota City, Japan-based automaker said on Friday it had its largest profit in six quarters as the company expanded sales globally. Net income rose 2.1 percent to 303.7 billion yen ($2.6 billion) in the second quarter ended Sept. 30, from a year earlier, the automaker said. Sales rose 10 percent to 4.97 trillion yen in the quarter.
The world's second-biggest automaker will probably have a fourth consecutive year of record profit this fiscal year, said Suzuki, without giving a specific forecast.
Shares of Toyota, which have risen 30 percent this year, rose 0.9 percent to 5,400 yen in Tokyo on Friday.
Boosting Output
Toyota said it will boost vehicle and parts production at its five factories in Japan, including one in Hokkaido, in northern Japan, two in Kyushu, southern Japan, one in Tohoku, north of Tokyo, and at Kanto Auto Works Ltd., its vehicle assembly affiliate.
The expansion at five factories will boost Toyota and its luxury brand Lexus' domestic production by 8.6 percent to 3.8 million units in 2006, from 3.5 million units now, the company said. Affiliates Daihatsu Motor Co. and Hino Motors Ltd. are also expanding, which will add another 500,000 to 600,000 units of capacity.
Toyota, which sells four of every 10 vehicles on Japan's roads, will release the redesigned RAV4 sport-utility vehicle on Nov. 14, and another four unspecified new and redesigned models in the fiscal fourth quarter, Suzuki said.
``The expansion at home will start as early as this month for some of the factories because it's easier and faster for us to work on the Japanese plants first,'' Suzuki said.
Global Expansion
The maker of Lexus SC and IS sedans is building more vehicles abroad, which helps it counter a stronger yen and deliver models faster to their dealers.
Toyota is opening its sixth North American assembly plant next year in Texas, which will increase its production capacity in the region to 1.71 million units from 1.51 million units now, Toyota said. With a new factory in Canada opening in 2008, its total production capacity in North America, including Mexico, will be at 1.81 million units, the company said.
``The increase of capital expenditure is necessary, but the amount is quite big, so that's a bit of a concern,'' said Koichi Sugimoto, an analyst at Nomura Securities Co.
Nissan Motor Co. opened a new factory in Canton, Mississippi in 2003, its first North American factory in 20 years, while Honda Motor Co. finished doubling capacity at its Alabama factory last month.
Europe, IMV
In Europe, Toyota will add 30,000 units of capacity to its current 775,000 units, by expanding its factory in Valenciennes, France. The company is reacting to demand for a new version of the Yaris compact, sold as the Vitz in Japan. The automaker plans to open its first factory in Russia which will add 50,000 units to European production. By 2007, Toyota will have a total capacity of 855,000 units in Europe, the automaker said.
Watanabe worked on the carmaker's so-called IMV project, or the International Multi Purpose Vehicle. The automaker will have a total production of 700,000 units in 2006.
IMV makes vehicles in emerging markets such as Indonesia, Thailand, South Africa and Argentina, to take advantage of tax breaks to accelerate production and cut development costs.
http://www.bloomberg.com/apps/news?p...top_world_news
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