DETROIT (WWJ) – New figures released on Wednesday show that Toyota’s profits were cut nearly 75 percent due to Japan’s recent earthquake and tsunami.
WWJ AutoBeat Reporter Jeff Gilbert says while General Motors and Ford are bringing in billions, Japanese automaker Toyota struggled to post a $314 million profit in the quarter that just ended, as they continue to deal with part shortages and the lack of electricity.READ MORE: Chalking Tires Illegal, Judge Says, But Saginaw Gets Big Break
Analysts say the earthquake is not the only thing cutting into Toyota’s profits. They are also dealing with an aging fleet and the lingering impact of last year’s recalls.READ MORE: LeBron James School Student Treated To VIP Access By NASCAR
“Toyota has been socked with one thing after another,” said Michelle Krebs, a senior analyst at Edmunds.com. “They had not yet recovered from last year’s unintended acceleration fiasco when the Japan earthquake knocked out some of its production. As a result, Toyota posted a lower market share for the fiscal year even as the company spent 26 percent more on incentives compared to the previous year.”MORE NEWS: MSP: Pursuit Of Stolen Vehicle With Murder Suspect Ends In Crash On I-275 In Livonia
Toyota says it expects its production to return to normal this summer, which is earlier than expected. However, some of its vehicles may be in short supply until fall this year. Some analysts feel that could cause car sales to slow in the summer months.