Toyota Motor Corporation (TM - Free Report) announced that it is going to restart operations at its domestic assembly plants after a close down, owing to last week’s earthquake, per Reuters. Beginning from Tuesday, the company will start partial production at a few plants that are situated near its headquarter in Aichi Prefecture. The remaining hubs will resume production on Thursday.
On Sep 3, Toyota halted production at 16 out of its 18 domestic plants that manufacture the brand’s vehicles. The decision has been taken after reviewing the supply chain impact due to work stoppage at the transmission hub in Hokkaido, which is operated by Toyota Motor Hokkaido.
The Hokkaido transmission hub supplies to the company’s assembly factories in Japan and overseas. It manufactures transmissions for gasoline vehicles, transaxles for hybrid gasoline cars and other components, which are used in popular models — including Corolla, RAV4 SUV, and Lexus NX and RX SUVs.
Toyota Motor Corporation Price and Consensus
Operations at the Hokkaido plant will resume soon, which were halted as a result of the prior week’s 6.7 magnitude earthquake in the country’s northernmost island.
In the past six months, Toyota’s stock has lost 8.5%, outperforming 13.6% decline recorded by the industry it belongs to.
Zacks Rank & Key Picks
Toyota currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space include PACCAR Inc. (PCAR - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Fox Factory Holdings, Inc. (FOXF - Free Report) . PACCAR currently carries a Zacks Rank #2 (Buy) while Allison Transmission and Fox Factory sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PACCAR has an expected long-term growth rate of 10.8%. Over the past three months, shares of the company have gained 1.9%.
Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have risen 31.5% in the past three months.
Fox Factory has an expected long-term growth rate of 16.8%. Over the past three months, shares of the company have gained 84.8%.
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