Toyota (NYSE: TM) predicts an unhopeful outlook for their biggest North American sales market due to a drop in quarterly sales marking it the lowest in almost 3 years. However, the company increased their full year operating profit forecast by 8% anticipating that Japan will enhance sales.
Toyota has been struggling to sell more vehicles in the U.S. where automakers are competing for customers by promoting heavy discounts mostly on sedans as driver preferences shift to bigger SUVs and pick up trucks. Following this, Toyota as well as other automakers has raised marketing costs.
North American market growth is important for Toyota’s sales as it helps sustain big investments in order to make fast growing new technologies including automated driving functions and artificial intelligence.
The company announced that full year operating profit is predicted to reach $17.54 billion which is up from a previous expectation of 1.85 trillion yen. Toyota is fighting to stay competitive in the North American market and has increased production of their Tundra and Tacoma pick up trucks as well as their RAV4 SUV crossover in order to capitalize on strong demands for larger vehicles.