Toyota's net profit drops 25%

Toyota car
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Toyota has posted a sharp fall in annual net income despite a rise in total vehicle sales.

Net income fell nearly 25% to 1.8828 trillion yen ($17bn; £13bn) in the year to March 31, the firm said in a statement.

Toyota said the drop was due to investment losses, and that earnings in the previous year had been boosted by US tax reform.

Vehicle sales rose by 12,401 units to 8,976,795 units compared to the previous fiscal year.

Japan's largest automaker forecasts profit will rise to 2.55 trillion yen for the year to March 2020, just below estimates for 2.61 trillion yen forecast by analysts polled by Refinitiv.

Hunt in Japan

White car

Talking of Japan, foreign secretary Jeremy Hunt is there today meeting Japanese Prime Minister Shinzo Abe and Toyota representatives.

He said before the talks began: “The UK has always been an outward-looking, global power. That cannot change after Brexit. I look forward to our relationship with Japan getting even closer in the years after we leave the EU".

He will reassure Toyota that the UK government is focused on avoiding a no-deal Brexit and on agreeing a deal which that will ensure tariff-free frictionless trade between the EU and the UK.

Toyota to build new Suzuki car at Burnaston factory

Toyota's hybrid version of its Corolla model
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Toyota will start manufacturing hybrid cars for Suzuki at one of its UK factories, it has been confirmed.

The plant in Burnaston, Derbyshire, is part of a global deal to share resources, which was announced by the car makers.

Based on the Corolla, the new car will have engines made in Wales and electrical components from Japan.

It will not lead to extra jobs or investment but will make the factory more efficient, the firm said.

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