rep0rter There are clear economic and investment tailwinds blowing across Japan right now. The land of the rising sun has enjoyed rising equity prices in the last few years as its currency weakens substantially. The Bank of Japan's hand may further be forced, given that it was recently reported that the world's fourth-largest economy endured a third consecutive quarter of negative GDP growth. Still, both the Nikkei and Topix are in long-term uptrends despite pullbacks from their Q1 2024 peaks. What's more, ...

The American pickup truck market is dominated by domestic brands, primarily Ford, Chevrolet, GMC and Ram. U.S. brands benefit from a loyal buyer base, and a 25% tax on imported trucks.But the Toyota Tacoma shows how a foreign automaker can find and control a niche within that market.The top-selling full-size pickup line is Ford's F-Series, especially the F-150, which is also the bestselling vehicle in America, according to Edmunds. GM and Ram pickups trail Ford, which also has the top-selling compact pickup ...

A successful focus on gas-electric hybrid vehicles has led to Toyota Motor Corp.’s (NYSE:TM) sales and profits surging, making TM stock the best automotive buy out there.In the last 12 months, TM stock has risen 55%, including a 21% gain so far this year. Compare that to a 9% increase in the share price of Ford Motor Co. (NYSE:F) and a 5% gain in the stock of Tesla (NASDAQ:TSLA) over the last 12 months. It rose because of stellar earnings reports and an electrification strategy that analysts are bullish on. ...

Shares of Toyota (TM) have declined roughly 5% since it released its fiscal fourth-quarter 2024 results on May 8. This Japan-based auto giant posted earnings of $4.99 per share, which surpassed the Zacks Consensus Estimate of $2.91 and rose from the year-ago earnings of $3.07 a share. Consolidated revenues came in at $74.5 billion, beating the consensus mark of $67.2 billion and rising from $73.2 billion in the year-ago quarter.  However, an expected year-over-year decline in fiscal 2025 profits is likely t ...

PLANO, Texas, May 15, 2024 /PRNewswire/ -- When it comes to social impact, civic engagement, and keeping community at the core of its business, Toyota North America* is recognized by Points of Light as a top community-minded company. This is the second year both Toyota Financial Services (TFS) and Toyota Motor North America (TMNA) have collectively ranked on The Civic 50 as a unified submission. Previously, TFS earned a spot on the list for seven consecutive years. Toyota Recognized in The Civic 50 For S ...

RAYLIEGH, ENGLAND - APRIL 29: A general view of a Toyota car dealer forecourt and showroom on April ... [+] 29, 2024 in Rayliegh, United Kingdom. (Photo by John Keeble/Getty Images) Getty Images Toyota Motor Corp stock has seen a big rally this year, rising by about 18%, compared to the broader S&P 500 which remains up by just about 9%. There are a couple of factors driving the stock higher. Now, the broader Japanese stock market indices have been among the better-performing in the world driven by corporate ...

PLANO, Texas, May 14, 2024 /PRNewswire/ -- Fair360, formerly DiversityInc, has named Toyota North America* one of its 2024 Top 50 Companies, ranking fourth among the 160 companies participating in the survey. Toyota has maintained its position for the third year in a row and continues to be the only automotive manufacturer ranked in the Top 10. Toyota Ranks 4th on Fair360’s Top 50 Companies "Everyone at Toyota plays a role in creating an inclusive culture where people belong and can contribute to their ...

Mobility Strategy and Innovation - Toyota has accelerated new initiatives including the multi-pathway strategy and the development of the on-board software platform Arene OS, aiming to create a mobility society with diverse and value-creating cars[5] - The company is focusing on transforming into a mobility company, emphasizing products that integrate with social systems and enhance energy and data mobility[6] - Toyota is developing hydrogen engines as part of its efforts to address carbon neutrality challenges, driven by a mindset of innovation and collaboration[7] - Toyota Mobility Concept focuses on transitioning cars to mobility, emphasizing electrification, intelligence, and diversification, with specific actions like the "multi-pathway strategy" for carbon neutrality[37] - Software Defined Vehicle (SDV) development is a key initiative, aiming to integrate vehicles with social systems and enhance co-creation with industry partners[37] - Toyota plans to invest in next-generation battery EVs and hydrogen mobility as part of its mid- to long-term strategy[37] - Development of the "Arene" software platform aims to seamlessly connect vehicles to lifestyles, offering advanced experiences and services[39] - Toyota's "Mobility for All" concept aims to provide mobility solutions across land, ocean, and air, with collaborations to achieve carbon neutrality in logistics[39] - Toyota's transformation into a mobility company includes initiatives like the e-Palette and new business models catering to diverse needs[45] - Toyota is focusing on a multi-pathway strategy, including hybrid vehicles, battery EVs (BEVs), and hydrogen mobility, with BEVs being developed as "software-defined vehicles (SDVs)" to enhance customer value[129] - The company is developing compact and lightweight power units for BEVs and positioning this year as its first truly multi-pathway year[129] - Toyota is building a foundation for SDVs with the development of the Arene on-vehicle operating system and plans to integrate generative AI to enhance automated driving and mobility value[130] Corporate Governance and Leadership - The Toyota Group Vision, formulated in January 2024, emphasizes invention, mutual gratitude, and a culture of ever-better manufacturing (monozukuri)[8] - Toyota's Board of Directors is structured to include individuals with diverse skills and experiences, ensuring balanced decision-making and supervision of management[23] - The company is focusing on creating a corporate culture that prioritizes customer and product perspectives, with leadership actively engaging at the frontline (genba)[8] - Toyota is promoting a culture of mutual gratitude and continuous improvement, aiming to ensure the group's relevance and contribution to future societal needs[8] - Akio Toyoda attended 94% (15/16) of the Board of Directors meetings and owns 23,466,258 shares of TMC[28] - Shigeru Hayakawa attended 100% (16/16) of the Board of Directors meetings and owns 330,127 shares of TMC[31] - Koji Sato attended 100% (13/13) of the Board of Directors meetings and owns 55,863 shares of TMC[35] - Hiroki Nakajima attended 100% (13/13) of the Board of Directors meetings[26] - Yoichi Miyazaki attended 100% (13/13) of the Board of Directors meetings[26] - Simon Humphries attended 100% (13/13) of the Board of Directors meetings[26] - Ikuro Sugawara attended 100% (16/16) of the Board of Directors meetings[26] - Masahiko Oshima attended 100% (13/13) of the Board of Directors meetings[26] - Emi Osono attended 100% (13/13) of the Board of Directors meetings[26] - Akio Toyoda has 24 years of tenure as a Director and is the Chairman of the Board of Directors[28] - Mr. Ikuro Sugawara has contributed to discussions on certification misconduct at Group companies and made recommendations for effective group governance[50] - Mr. Ikuro Sugawara has advised on intra-Group cross-shareholdings and strategic shareholdings, and the need for a flexible review of the "multi-pathway strategy" toward carbon neutrality[50] - Sir Philip Craven has pointed out the need to examine materiality thresholds at the Sustainability Meeting and to seek messages that resonate with employees and stakeholders[56] - Sir Philip Craven has emphasized the importance of non-financial KPIs in compensation and the importance of growing together with stakeholders[56] - Mr. Masahiko Oshima has accurately pointed out the need for reviewing strategic shareholdings while building partnerships across industries[60] - Mr. Masahiko Oshima has emphasized the importance of dialogue with investors and the effective use of assets and appropriate risk-taking[60] - Ms. Emi Osono has pointed out that a strength of the Toyota Group can be found in maintaining diversity and moderately connecting with each other[64] - Ms. Emi Osono has contributed to setting financial and non-financial KPIs and evaluation processes based on the roles and expectations of executives[64] - Ms. Emi Osono has emphasized the importance of promoting women's participation in the workforce and specific initiatives to achieve these goals[64] - Ms. Emi Osono is registered as an independent director with Japanese stock exchanges and TMC plans to maintain her registration upon reappointment[65] - TMC has entered into a limited liability agreement with Ms. Emi Osono to limit liabilities as per the Companies Act[65] - Tokio Marine & Nichido Fire Insurance Co., Ltd., where Ms. Emi Osono serves as an Outside Director, received a business improvement order from the Financial Services Agency on December 26, 2023[65] - TMC has a directors and officers liability insurance agreement covering damages and court costs, with premiums fully borne by TMC, set to expire in July 2024[66][73] - TMC plans to renew the directors and officers liability insurance agreement with similar provisions after July 2024[66][73] - Mr. Ryuji Sakai will resign as Audit & Supervisory Board Member due to falling under TMC's revised Independence Assessment Criteria[68] - Hiromi Osada is nominated as a candidate for Outside Audit & Supervisory Board Member, with TMC planning to register her as independent upon approval[71] - TMC plans to enter into a limited liability agreement with Hiromi Osada upon her appointment[72] - Hiromi Osada will be insured under TMC's directors and officers liability insurance agreement upon her appointment[72] - TMC's Independence Assessment Criteria exclude individuals with transactions exceeding 2% of consolidated net sales or assets in the last three business years[80] - TMC disclosed that Dr. George Olcott, an Outside Audit & Supervisory Board Member, received compensation of 12 million yen per year from June 2020 through March 2022, with no conflicts of interest identified[83] - TMC plans to elect 1 Substitute Audit & Supervisory Board Member to prepare for potential shortages, with Ms. Kumi Fujisawa nominated as a candidate[88] - Ms. Kumi Fujisawa, nominated as a Substitute Outside Audit & Supervisory Board Member, owns TMC shares as of March 31, 2024, and has no special interests with TMC or its subsidiaries[91] - Outside members of the Board of Directors and Audit & Supervisory Board members attended 100% of meetings in FY2024, contributing insights based on their experience[187] Climate and Sustainability Initiatives - The company is aligning its climate-related lobbying activities with the goals of the Paris Agreement, as reflected in proposed amendments to its Articles of Incorporation[14] - TMC's 2023 climate-related lobbying report scored 21/100 in the InfluenceMap assessment, showing no improvement from the 2022 report[95] - TMC increased the number of reviewees in its climate-related lobbying report from 6 to 12 organizations in 2023 and added third-party evaluations for transparency[98] - TMC plans to further improve the transparency and comprehensiveness of its climate-related lobbying report in 2024, including addressing instances of misalignment with the Paris Agreement[98] - TMC is the only Japanese company issuing a report on climate-related lobbying activities as of May 2024[97] - TMC's Board of Directors opposes a shareholder proposal to amend the Articles of Incorporation for annual climate-related lobbying reports, citing ongoing improvements and transparency efforts[97] - TMC aims to achieve carbon neutrality by 2050 and is focusing on multi-pathway strategies, including electricity and hydrogen, to align with future energy needs[98] - TMC has engaged in over 10 dialogues with the proposing shareholder since 2021 to improve its climate-related lobbying disclosures[97] - The company has sold 23.15 million electrified vehicles (BEVs, FCEVs, HEVs, and PHEVs) since 1997, contributing to a reduction of approximately 176 million tons of greenhouse gas emissions[99] - The company aims to reduce average GHG emissions from new vehicles by more than 33% by 2030 and more than 50% by 2035 compared to 2019 levels[99] - The company is collaborating with CP Group in Thailand to produce hydrogen from biogas and has developed a system to reuse used batteries from discarded vehicles as stationary batteries[113][114] Financial Performance and Strategy - Global sales for FY2024 (April 2023 through March 2024) reached 10,309 thousand units, with China accounting for 1,902 thousand units (18.4%) and Asia (excluding China) at 1,403 thousand units (13.6%)[115][116] - Consolidated sales revenues for FY2024 were 45,095,325 million yen, with automotive sales contributing 41,080,731 million yen[122] - Operating income for FY2024 increased significantly to 5,352,934 million yen, compared to 2,725,025 million yen in FY2023[122] - Net income attributable to the company for FY2024 was 4,944,933 million yen, with basic earnings per share at 365.94 yen[122] - Consolidated capital expenditures for FY2024 were 2,010.8 billion yen, while R&D expenditures were 1,202.3 billion yen[124] - The company plans to increase dividends by 15 yen year-on-year to 75 yen and set a maximum share repurchase limit of 1 trillion yen for year-end returns[125] - The company has reduced the number of strategic shareholdings from 228 issuers in FY2020 to 141 issuers in FY2024, with the balance decreasing from 2,282.3 billion yen to 3,777.7 billion yen[102] - The maximum cash compensation for members of the Board of Directors is set at 3.0 billion yen per year, with a maximum of 0.3 billion yen for outside members[166] - The maximum share compensation for members of the Board of Directors is set at 4.0 billion yen per year[166] - The remuneration for Audit & Supervisory Board members is set at 30 million yen or less per month[166] - Short-term incentives (STI) account for around 20% of the Annual Total Remuneration, while long-term incentives (LTI) account for around 50%[171] - Performance-based remuneration, combining STI and LTI, accounts for around 70% of the Annual Total Remuneration[171] - The consolidated operating income for FY2024 is evaluated with a reference value of 2.5 trillion yen[173] - The fluctuation of TMC's market capitalization for FY2024 is evaluated with a reference value of 25.5 trillion yen for TMC and 1,990.68 for TOPIX[173] - The total shareholder return for FY2024 is evaluated with a reference value of 196.2% for TOPIX[173] - The return on equity for FY2024 is evaluated with a reference value of 8%[173] - The progress of efforts to resolve sustainability issues is evaluated based on six key issues (materiality)[173] - Performance-based remuneration for retired members of the Board of Directors is set based on consolidated operating income, market capitalization fluctuation, and individual performance, with potential income tax compensation for foreign members[181] - The maximum share compensation for TMC's Board of Directors is set at 4.0 billion yen per year, with a maximum of 4 million shares to be allotted annually[182][183] - The clawback rule introduced in November 2023 allows TMC to recover overpaid performance-based remuneration from Board members if financial statements are restated, covering the three fiscal years prior to the restatement[184] - Total compensation for members of the Board of Directors in FY2024 was 3,542 million yen, including 1,712 million yen in share compensation (518,000 shares)[185] - Total compensation paid to the Accounting Auditor (PricewaterhouseCoopers Japan LLC) for FY2024 was 868 million yen, with additional benefits totaling 2,077 million yen[190] Subsidiaries and Partnerships - Toyota Financial Services Corporation has a capital of 78,525 million yen and is fully owned by Toyota[153] - Hino Motors, Ltd. is 50.11% owned by Toyota with a capital of 72,717 million yen[153] - Daihatsu Motor Co., Ltd. is fully owned by Toyota with a capital of 28,404 million yen[153] - Toyota Motor Manufacturing, Kentucky, U.S.A. Inc. has a capital of USD 1,180,000 and is fully owned by Toyota[153] - Toyota Motor Europe NV/SA has a capital of EUR 3,504,469 thousand and is fully owned by Toyota[154] - Toyota Motor Manufacturing France has a capital of EUR 268,079 and is fully owned by Toyota[154] - Toyota Motor (China) Investment Co., Ltd. has a capital of USD 118,740 and is fully owned by Toyota[154] - Toyota Kirloskar Motor Private Ltd. is 89% owned by Toyota with a capital of INR 7,000,000[154] - P.T. Astra Daihatsu Motor is 61.75% owned by Toyota with a capital of IDR 894,370,000[154] - Toyota Motor Corporation has a total of 16,314,987,460 shares issued[155] - The company is collaborating with Mitsubishi Fuso Truck and Bus Corporation to rebuild Hino Motors through business integration[137] - The company is transferring the development and certification of automobile engines from Toyota Industries to Toyota to prevent recurrence of irregularities[137] Operational and Risk Management - The company is reducing daily production volume from 14,500 units to 14,000 units to create reserve capacity and improve workplace communication and safety[141] - Toyota is strengthening internal control and risk management in subsidiaries, including the establishment of a new Governance, Risk, and Compliance Management Division at Daihatsu[142] - The company is expanding its auditing of subsidiaries, focusing on corporate culture, workplace environment, and legal compliance, and using tools like governance inspection check sheets[144] - Toyota is increasing communication among top management through president and executive vice president meetings to build open relationships[140] - The company is working on recurrence prevention measures for certification irregularities, including outsourcing compact car development and certification to Toyota[136] - TMC's system to ensure business operation appropriateness includes compliance with the Toyota Philosophy, Guiding Principles, and Toyota Code of Conduct, with a focus on open workplace culture and continuous improvement[194][196]

Core Insights - The ninth-generation Camry has commenced production at Toyota's Kentucky plant, emphasizing the company's commitment to electrification and job stability in the U.S. [1][2] - Toyota has invested over $18.6 billion in U.S. manufacturing operations since 2021 to support electrification efforts, including a recent $1.3 billion investment in the Georgetown facility [3][2] - The Camry has been a significant product for Toyota, with over 11 million units assembled and the plant employing nearly 10,000 workers [1][3] Investment and Employment - Toyota's Kentucky plant has received more than $10 billion in investments and has been a key site for the assembly of popular models like the Camry, which has been America's best-selling passenger car for 22 consecutive years [1][3] - The company is committed to providing secure employment and has a history of reinvesting profits into the plant to prepare team members for future production opportunities [1][2] Electrification Strategy - The 2025 Camry is powered exclusively by the fifth-generation Toyota Hybrid System, aligning with Toyota's multi-pathway approach to electrification [1] - The new investment will also support the assembly of a new three-row battery electric SUV for the U.S. market, enhancing Toyota's range of electrified products [2][3] Company Overview - Toyota has been a significant player in North America for over 65 years, employing more than 63,000 people and contributing to the design, engineering, and assembly of nearly 47 million vehicles [4] - By 2025, Toyota plans to open its 13th plant in North Carolina, which will manufacture automotive batteries for electrified vehicles, further solidifying its commitment to sustainable mobility [4]

Toyota Motor Corporation (NYSE:TM) Q4 2024 Earnings Call Transcript May 8, 2024 1:00 AM ET Company Participants Ellie Gibbs - Public Affairs Yoichi Miyazaki - EVP and CFO Koji Sato - President and CEO Conference Call Participants Hans Greimel - Automotive News Mizuno Tetsuya - Yomiuri Tsuyoshi Inajima - Bloomberg Kana Inagaki - Financial Times Ellie Gibbs Ladies and gentlemen, thank you very much for joining us despite your occupied schedules. We would like to start the financial results announcement for th ...