Toyota has more than halved its annual profit forecast. It has been cut to the equivalent of less than two billion euros because of the strong yen and flooding in Thailand that severed its supply lines.
That, coupled with the Japanese earthquake and tsunami in March, meant Toyota has not been able to make enough cars.
It is expected to be overtaken in sales this year by General Motors and probably Volkswagen
While Toyota is poised for record production next year as it rebuilds depleted inventories, the yen’s persistent strength against virtually every major currency means profit recovery will continue to be slow given its huge dependence on exports.
Thailand’s worst floods in 50 years cut off the supply of parts to Toyota’s factories in 10 countries and it said the disaster would effectively cost the company 230,000 vehicles in lost production this business year.
With floodwaters having receded and recovery work under way at Thailand’s industrial parks, Toyota has said its production has returned to normal in most regions, leaving just Thailand and South Africa operating at reduced rates.
It said on Friday Thai production was expected to return to normal this month.