Toyota Likely to Miss Domestic Sales Target

About two weeks ago, Toyota Motor president Katsuaki Watanabe said he did not want to "lower the flag yet" in Japan for full-year sales, despite trailing every month year-over-year through July. However, on Tuesday, Mr. Watanabe speaking at a news conference said sales will likely miss the company's projection of 1.72 million vehicles. Mr. Watanabe said in spite of the challenging market, Toyota "should be able [to sell] mid-1.6 million vehicles." Commenting on the U.S. market, Mr. Watanabe said industry-wide conditions have worsened due to higher oil prices and subprime mortgage related troubles. Toyota still expects to meet its global sales target of 8.4 million vehicles, +6% y/y, helped by growth in the Middle East, Russia and Southeast Asia. Toyota's ADRs lost 0.3% to $117.36 on Monday. Its ordinary shares fell 1% to ¥6,760 ($115.36) in Tokyo on Tuesday.

Sources: Wall Street Journal
Commentary: U.S. Sept. Auto Sales Down, But Better Than Expected • Japan Trade Surplus Surges on Auto, Steel Demand • Toyota's September Sales May Disappoint
Stocks/ETFs to watch: TM. Competitors: HMC, NSANY, F, GM, DAI. ETFs: EWJ, ADRA

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