COVID-19 drops Toyota’s profit by 80%, car sales fall by $14bn

COVID-19 drops Toyota’s profit by 80%, car sales fall by $14bn

- The outbreak of the coronavirus has led to a fall in profit level of car manufacturing company, Toyota Motor Corporation

- The carmaker reported that it has recorded a $14 billion drop in car sales

- The firm, however, reported that it expects an upsurge in its profits in 2021

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The global car manufacturing company, Toyota Motor Corporation, has reported an 80% fall in its profit level.

The drop, which is the lowest in nine years, comes at a time when Japan’s biggest automaker is grappling with the economic impact of the coronavirus.

It was gathered that the spread of the virus has also led to a $14 billion drop in car sales.

Analysts have concluded that there is the likelihood of limited output as a result of fractured supply chains and social distancing measures recorded at plants.

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Per a report by myjoyonline.com, Akio Toyoda, the president of the company, stated that “the coronavirus has dealt us a bigger shock than the 2008 global financial crisis. We anticipate a big drop in sales volumes, but despite that we are expecting to remain in the black. We hope to become a leader of the country’s economic recovery.”
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In 2019, Toyota sold vehicles to the tune of $10.46 million and expected to recover in 2021. The company’s main rivals, Honda Motor Co Ltd and General Motors have, however, refrained from issuing forecasts.

Meanwhile, Legit.ng reported that Zainab Ahmed, the minister of finance, budget and national planning, has disclosed that the decline in oil revenue due to the hard-hitting effect of coronavirus has posed a great threat to the economy.

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Addressing journalists in Abuja on Monday, April 6, the finance minister said the impact of the tumble in oil price globally has really brought a damning effect on Nigeria's economy.

Legit.ng noted that since January 2016, the oil price has tragically slipped below $30 a barrel, leaving countries like Nigeria who depend on the oil as major revenue generation in an economic quagmire.

As Nigeria faced a looming economic crisis, Hajia Ahmed said the country will not like "to sit down and assume that we know what you want."

The finance minister, who lamented the impact of Covid-19 on each sector of the economy, said the pandemic will have an impact on economy-related sectors of the country.

"The COVID-19 pandemic will have an impact on the supply of food and other essential items. "The decline in oil revenue poses a significant threat to the economy.

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"The finance ministry has developed a framework for the management of these funds (donations from individuals, bodies etc). We would be amending the 2020 budget to bring it into current realities," Hajia Zainab said.

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Source: Legit.ng

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