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Toyota Motor’s Development Plans and Recalls


Jun. 7 2016, Updated 8:08 a.m. ET

Toyota Motor Company’s price movement

Toyota Motor Corporation’s (TM) stock rose by 2.9% to close at $103.50 per share in the first week of June 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 1.2%, 2.9%, and -15.9%, respectively. TM is trading 2.0% above its 20-day moving average, 0.56% above its 50-day moving average, and 9.3% below its 200-day moving average.

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Related ETF and peers

The Schwab Fundamental International Large Company ETF (FNDF) invests 0.07% of its holdings in Toyota Motor Corporation. The ETF tracks an index of large firms from developed markets outside the United States. Its selection and weighting are based on fundamental factors, including sales, cash flow, dividends, and buybacks. The YTD price movement of FNDF was 1.7% as of June 3, 2016.

The market caps of Toyota Motor’s competitors are as follows:

  • Ford Motor Company (F): $51.8 billion
  • General Motors (GM): $45.6 billion
  • Tesla Motors (TSLA): $32.0 billion

Toyota Motor’s new developments

Toyota Motor is in discussions to buy two robotics divisions from Google’s parent company, Alphabet, to create innovative cars and to improve its R&D (research and development).

The company has recalled ~490,000 vehicles in Japan, China, Europe, and other regions due to an issue with faulty airbag inflators produced by Takata. It recalled 45,000 Lexus vehicles in Japan, ~140,000 Lexus vehicles in China, 80,000 Lexus and Toyota vehicles in Europe, 120,000 Lexus and Toyota vehicles in South America and other regions, and 100,000 Toyota vehicles in Mexico.

The company announced the recommencement of all vehicle assembly lines after June 6. Following the earthquakes in Japan on April 14 and thereafter, there was a shortage of parts, which impacted production.

Toyota Motor and KDDI Corporation have entered into a partnership to provide a global communications platform to support car connectivity.

Toyota Motor has suspended production at three plants due to an explosion at an Aisin Advics Company factory.

Toyota Motor’s sales in May 2016

In May 2016, Toyota Motor reported total Toyota sales of 219,339 units, a fall of 9.6% from May 2015. The company reported total Toyota division sales of 192,657 units, a fall of 9.5% from May 2015. It reported total Lexus sales of 26,682 units, a fall of 10.1% from May 2015.

Sales by type:

  • Total Toyota car reported sales of 107,714 units, a fall of 15.9% from May 2015.
  • Total Toyota truck reported sales of 111,625 units, a fall of 2.5% from May 2015.

In the next article in this series, we’ll take a look at General Mills’ latest recall.


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