Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Toyota Motor Corporation    7203   JP3633400001

TOYOTA MOTOR CORPORATION

(7203)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Ford to restart U.S. truck plants in April to beat pandemic-linked cash squeeze

share with twitter share with LinkedIn share with facebook
share via e-mail
03/26/2020 | 03:11pm EDT
The logo is seen on the bonnet of a new Ford Aspire car during its launch in New Delhi

Ford Motor Co announced plans on Thursday to shore up its finances amid the coronavirus pandemic, aiming to generate more cash by resuming production next month of its most profitable vehicles while saving money through further cost cuts.

To generate cash, the No. 2 U.S. automaker was poised to restart production at some plants in North America as early as April 6, bringing back such profitable vehicles as its top-selling F-150 full-sized pickup, the Transit commercial van and SUVs.

To conserve cash, Ford announced belt-tightening moves, including temporarily cutting top executives' salaries. This came a day after Standard & Poor's downgraded the Dearborn, Michigan-based company's debt to "junk" status and warned more downgrades could be necessary.

"The actions we're taking now are wide-ranging and substantial," Chief Executive Jim Hackett told employees in an email early on Thursday. "We hope they will be enough to give Ford the financial flexibility to ride out the economic and business effects of the coronavirus."

The coronavirus pandemic, which has killed more than 21,000 people globally, has forced the shutdown of auto plants around the world.

The outbreak has put pressure on companies, including Ford, which previously drew down credit lines to build its cash position and suspended its dividend.

The U.S. Senate on Wednesday passed a $2 trillion (1.6 trillion pounds) economic rescue package to help unemployed workers and companies, including the auto industry, hit hard by the outbreak.

U.S. President Donald Trump, concerned about the economic repercussions of an extended shutdown, has said he wants America to get back to business by Easter, or April 12.

GENERATING CASH

To get more cash coming in, Ford said Thursday it would restart key plants, while introducing additional safety measures to protect returning workers from the coronavirus. It said it would detail the additional measures later.

Ford also took additional moves to conserve cash, announcing its top 300 executives would defer 20% to 50% of salaries for at least five months starting May 1, with the executive chairman deferring his entire salary. Hackett will defer half his salary.

Hackett said Ford's goal was to avoid layoffs during the crisis, but warned that could change if the impact of the outbreak is more severe than anticipated.

Other actions Ford is taking to conserve cash include deferring salary increases more broadly, suspending overtime for salaried employees and freezing hiring in non-critical areas, Hackett said.

However, Ford employees will continue to get healthcare coverage and those exposed to the virus and placed in quarantine will get paid time off, he added.

General Motors Co and Fiat Chrysler Automobiles previously said they would shut their North American operations through March 30 and then reassess after that.

FCA on Thursday extended its shutdown through April 13, while its parts distribution centres will continue to operate with paid volunteers. Mexico's status is subject to a separate announcement.

GM on Thursday extended its shutdown indefinitely with no firm restart dates, but said it would evaluate the situation on a week-to-week basis.

The automaker said near-term programs like its redesigned full-size SUVs, electric vehicles such as the Cruise Origin, and new Ultium battery "will continue as planned." But it will adjust timing and milestones of other future programs "as necessary" to conserve cash, it added.

United Auto Workers President Rory Gamble said Thursday the union viewed announcements like Ford's with concern, and any decision to restart production should be based on data and each state's position with regards to the coronavirus outbreak.

"The only guideline in a boardroom should be management asking themselves, 'Would I send my family - my own son or daughter - into that plant and be 100% certain they are safe?'" he said in a statement.

The UAW has said three union members who worked at FCA plants have died due to the coronavirus.

Michigan Governor Gretchen Whitmer issued an order on Monday barring non-essential businesses from operating until April 13.

Japanese automaker Honda Motor Co Ltd said on Thursday it would resume work at its U.S. and Canadian plants on April 7.

Meanwhile, Japan's Toyota Motor Corp said it would extend a shutdown of its North American plants for two weeks, through April 17.

Ford plans to begin production on one shift at its Hermosillo, Mexico, assembly plant, where it builds the Ford Fusion and Lincoln MKZ sedans.

It will restart production on April 14 at its Dearborn plant that builds the F-150 and a Kentucky plant that makes the Super Duty version of the pickup as well as the Ford Expedition and Lincoln Navigator SUVs. Other assembly and parts plants will restart then as well.

Ford shares closed down 2.4%, while GM rose 4.8%.

(Additional reporting by David Shepardson in Washington, Paul Lienert in Detroit and Sanjana Shivdas in Bengaluru; Editing by Shinjini Ganguli, Bernadette Baum and Richard Chang)

By Ben Klayman

Stocks mentioned in the article
ChangeLast1st jan.
FIAT CHRYSLER AUTOMOBILES -0.60% 6.285 Delayed Quote.-50.19%
HONDA MOTOR CO., LTD. -4.37% 2430 End-of-day quote.-4.61%
TOYOTA MOTOR CORPORATION -4.35% 6501 End-of-day quote.-4.06%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on TOYOTA MOTOR CORPORATION
11:47aTOYOTA MOTOR : North America Reports March And First Quarter 2020 Sales; COVID-1..
AQ
11:47aMAZDA MOTOR : Toyota Motor Credit Corporation Launches Private Label Business; A..
AQ
08:40aTOYOTA MOTOR : China's BYD announced electric car venture
AQ
08:15aAuto-Parts Suppliers Teeter as Car Production Halts
DJ
05:34aTOYOTA MOTOR : BYD, Toyota Launch BYD TOYOTA EV TECHNOLOGY Joint Venture to Cond..
AQ
02:47aU.S. Auto Sales Drop as Health Crisis Bites -- WSJ
DJ
02:07aChina's GAC says Toyota and Honda ventures plan to sell 1 million cars a year..
RE
04/01Fiat Chrysler, GM try discounts, online buying to lift plunging U.S. sales
RE
04/01COVID-19 : Chickens coming home to roost?
AQ
04/01TOYOTA MOTOR : Welcomes 1,165 New Employees for FY2021
AQ
More news
Financials (JPY)
Sales 2020 29 881 B
EBIT 2020 2 528 B
Net income 2020 2 281 B
Debt 2020 15 501 B
Yield 2020 3,64%
P/E ratio 2020 7,94x
P/E ratio 2021 8,32x
EV / Sales2020 1,10x
EV / Sales2021 1,12x
Capitalization 17 478 B
Chart TOYOTA MOTOR CORPORATION
Duration : Period :
Toyota Motor Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TOYOTA MOTOR CORPORATION
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 8 144,44  JPY
Last Close Price 6 287,00  JPY
Spread / Highest target 54,3%
Spread / Average Target 29,5%
Spread / Lowest Target -2,97%
EPS Revisions
Managers
NameTitle
Akio Toyoda President, CEO & Representative Director
Takeshi Uchiyamada Chairman
Koji Kobayashi CFO, Director, Chief Risk Officer & Executive VP
Shigeki Terashi Director, Chief Technology Officer & Executive VP
Seiji Sakai Manager-Information Systems & IT Management
Sector and Competitors
1st jan.Capitalization (M$)
TOYOTA MOTOR CORPORATION-4.06%167 962
VOLKSWAGEN AG-43.83%63 577
HONDA MOTOR CO., LTD.-4.61%39 007
BMW AG-39.32%33 622
DAIMLER AG-48.30%32 354
GENERAL MOTORS COMPANY-47.38%29 695