Toyota bracing for another tough year after 21% profit drop
US car buyers are shifting away from sedans amid dim overall market outlook
Toyota reported on Wednesday a 21% profit drop for 2016, and estimated net profit would fall yet again for in the current fiscal year, reports the Wall Street Journal. A second-straight year of falling profits would come after three-straight years of record profits buoyed by a weaker yen.
The disappointing performance comes as US customers shift away from sedans on which Toyota relies more than its rivals. Midsize sedan sales dropped 15%, while crossover and SUV sales were up 8.1%, according to figures from Autodata Corp. It also comes as overall demand for new vehicles in the US cools after record sales in 2016.