Toyota Motor Corporation
) Camry will stop being assembled at
Fuji Heavy Industries Ltd.
) Lafayette, Indiana plant from 2017. Fuji will use the resultant
free capacity at its plant to increase the production of its
Subaru vehicles. The company wants to expand the production
capacity of the plant to 300,000 Subaru vehicles per annum.
The Indiana plant produces 100,000 Camry and 170,000 Subaru
vehicles annually. Camry production was started in the plant in
Camry is also produced in Toyota's plant in Georgetown, Kentucky.
Toyota, one of the top share holders of Fuji Heavy Industries,
commands a 16.5% stake in the company.
Fuji intends to build Impreza models in the Lafayette facility.
This additional product will prevent the loss of employment of
workers involved in Camry production. The company expects sales
of the Subaru Forester to increase by 25% to 420,000 vehicles
Toyota posted earnings per share of ¥138.26 ($1.40) in
second-quarter fiscal 2014 (ending Sep 30, 2013), reflecting a
strong 69.8% year-over-year rise. The company gained heavily from
higher revenues, favorable currency translation and strong
Consolidated revenues in the quarter climbed 16.2% year over year
to ¥6,282.2 billion ($63.5 billion) despite a 0.5% year-over-year
drop in the Automotive unit sales.
Toyota plays a pivotal role in shaping the global automobile
industry. The automaker dominates the hybrid market with its
Toyota and Lexus offerings as well as the Prius hybrids.
Moreover, it is the leading automobile company in terms of global
sales, beating another automobile giant
General Motors Company
However, Toyota faces challenges from safety recalls and adverse
macroeconomic factors that are detrimental to its brand image and
Ford Motor Co.
) carrying a Zacks Rank #1 (Strong Buy) is worth considering in
the same industry where Toyota operates.
FORD MOTOR CO (F): Free Stock Analysis Report
FUJI HEAVY ADR (FUJHY): Get Free Report
GENERAL MOTORS (GM): Free Stock Analysis
To read this article on Zacks.com click here.