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Why Is Toyota Motor Cutting Jobs in Thailand?

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Price movement of Toyota Motor

Toyota Motor (TM) has a market cap of $164.3 billion. It rose by 0.60% to close at $99.78 per share on July 6, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.07%, -5.5%, and -18.9%, respectively, on the same day.

TM is trading 3.3% below its 20-day moving average, 2.8% below its 50-day moving average, and 11.2% 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. 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, and dividends and buybacks. The YTD price movement of FNDF was -2.3% on July 6.

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

  • Ford Motor (F): $49.4 billion
  • Tesla Motors (TSLA): $30.7 billion
  • General Motors (GM): $42.8 billion

Toyota Motor to cut 800 jobs

Toyota Motor is planning to cut 800 jobs of subcontractors in Thailand due to the economic slowdown in the southeast Asian country and abroad.

Reuters reported, “Thailand’s economic slowdown, along with uncertainty over the global economy, have affected both the domestic automotive industry and exports since the beginning of the year.”

Reuters added, “That has caused a reduction in production volume, overtime hours and monthly income offered to employees.”

Sales of Toyota Motor in June 2016

Toyota Motor reported total Toyota sales of 198,000 units, a decline of 5.6% compared to June 2015. It reported total Toyota division sales of 172,000 units, a decline of 6.2% compared to June 2015. It reported total Lexus sales of 26,000 units, a decline of 1.3% compared to June 2015.

By sales type, total Toyota car sales were 97,000 units, a decline of 10.4% compared to June 2015. Total Toyota truck sales were 102,000 units, a decline of 0.4% compared to June 2015.

In the next part of the series, we’ll take a look at WhiteWave Foods.

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