Global Auto Names On Watch After Toyota Slashes November Production Estimate By (Another) 15%
We wrote just hours ago that European auto stocks would likely be next on watch after disappointing data out of China.
This morning, after a Nikkei report stating that Toyota would cut its global auto production target for November, those same stocks are on watch. Names like Stellantis, Daimler, GM, BMW and Renault will all be in focus on Friday as a result of the announcement.
Toyota said it was cutting auto production in November by 15% from its latest plan. This will equate to a drop-off of about 150,000 vehicles. Toyota had already cut production targets by 40% from its initial plan for September to October, Nikkei reported.
The company said it was negatively affected (like everyone else in the industry) by the ongoing semiconductor shortage. Toyota also cited power outages in China as a reason for cutting its production targets.
Recall, days ago we reported that passenger vehicle wholesales in China fell 16.5% YOY to 1.75 million units.
The China Association of Automobile Manufacturers predicts for a weaker full year auto market – also due to chip and power shortages, it said. It expects the chip shortage to ease up in Q4 of this year, marking yet another prediction amongst a sea of confusion between manufacturers and analysts as to when the global shortage will end. Other analysts and several automakers have commented that the chip shortage could continue into 2022.
Despite the dip, there were a couple silver linings. The CAAM has been forecasting pickup truck sales to rise by more than 1 million units by 2030, from 414,000 in 2020.
New energy vehicle wholesales also continued to be robust, up 148.4% to 357,000 units.
Toyota, meanwhile, is expected to keep its full year production target of 9 million units.
Fri, 10/15/2021 – 21:30
Jump To The Original Source