See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Ford Motor Company (F) - free report >>
Toyota Motor Corporation (TM) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ford Motor Company (F) - free report >>
Toyota Motor Corporation (TM) - free report >>
Image: Bigstock
Toyota (TM) Restarts Production in Venezuela, Plans to Export
Toyota Motor Corporation (TM - Free Report) has restarted production in Venezuela after a gap of six months. This South American nation has been going through troubled times due to low oil prices and currency controls, which have led to a deficiency of the dollar in the region.
As a result, Toyota, along with many other automakers, has been facing headwinds in vehicle production in the country. In fact, auto production in Venezuela plummeted 86% in the first half of 2016 due to a shortage of vehicle parts.
Nevertheless, Toyota has now started vehicle assembly in Venezuela for catering to local markets as well as for exports. It is currently assembling three models – Corolla, Hylux and Fortuner – at the Cumana plant. Export of these vehicles will start in the first half of 2017. Note that Toyota had commenced the export of vehicle parts from Venezuela last year.
Apart from Toyota, other automakers like General Motors Company (GM - Free Report) and Ford Motor Company (F - Free Report) , as well as parts makers like The Goodyear Tire & Rubber Company (GT - Free Report) have faced similar issues in Venezuela in recent years.
Ford had to stop vehicle assembly at its Venezuela plant in May 2014 and Apr 2015 due to a lack of foreign currency to import vehicle parts for assembly. The company also incurred a charge of $800 million in fourth-quarter 2014 owing to the Venezuelan currency devaluation, which adversely affected its net income by $700 million, after deferred tax benefits.
Meanwhile, General Motors incurred a pretax charge of $600 million in second-quarter 2015 due to the impact of devaluation of the Venezuelan bolivar. On the other hand, deconsolidation of Goodyear’s subsidiary in Venezuela is leading to a significant decline in the company's revenues and operating income.
Toyota currently carries a Zacks Rank #3 (Hold).
TOYOTA MOTOR CP Price
TOYOTA MOTOR CP Price | TOYOTA MOTOR CP Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>