One of the worlds biggest motor vehicle production company Toyota Motor Corporation announced on Tuesday that it expects profit to drop by 80% to its lowest in almost decade. Toyota grapples with the impact of the novel coronavirus which has sapped global demand for vehicles.
The suspected damage to Toyota’s bottom line highlights how the car companies will struggle to recover from the virus effect in the coming months as they gradually restart production facilities after curbs on public movement limited workers in many countries from traveling.
The industry anticipates limited output due to fractured supply chains and social distancing actions at production plants, along with weak demand as job losses and concern about an economic downturn weigh on consumer spending on major buying like cars.
Toyota as one of the world’s most successful automakers requires to take a 1.5 trillion $13.95 billion hit from a fall in global vehicle purchases this year due mainly to the coronavirus.
