Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Toyota to delay US EV production to 2026 amid slowing sales, Nikkei reports

Published 10/02/2024, 06:45 PM
Updated 10/03/2024, 06:35 AM
© Reuters. FILE PHOTO: Toyota's logo is seen in their exhibition stall at Bharat Mobility Global Expo organised by India's commerce ministry at Pragati Maidan in New Delhi, India, February 1, 2024. REUTERS/Anushree Fadnavis/File Photo
TM
-

(Reuters) -Toyota Motor will postpone the start of electric-vehicle production in North America to the first half of 2026 due to design adjustment and slowing EV sales, the Nikkei business daily reported on Thursday.

The Japanese automaker recently told suppliers the start date for production of its first battery EV model at its factory in the U.S. state of Kentucky - a three-row SUV - will be delayed by several months, the Nikkei said.

Production is now likely to begin in early 2026 rather than late next year, Toyota (NYSE:TM) spokesperson Scott Vazin said.

"We've always said it would be late 2025 and it could creep into 2026 and it does look like it's going to creep into 2026," Vazin said.

He said Toyota planned to introduce five to seven battery electric vehicle models in the U.S. over the next two years.

Supply disruption and governance issues had prompted Toyota to delay the start of U.S. EV production by six months to around June 2026, sources previously told Reuters.

© Reuters. FILE PHOTO: Toyota's logo is seen in their exhibition stall at Bharat Mobility Global Expo organised by India's commerce ministry at Pragati Maidan in New Delhi, India, February 1, 2024. REUTERS/Anushree Fadnavis/File Photo

The automaker aimed to manufacture electric SUVs under its luxury Lexus brand in North America by 2030 but has scrapped that plan in favour of shipping completed vehicles to the U.S. from Japan, the Nikkei also reported on Thursday.

Toyota in February invested $1.3 billion in its Kentucky facility for its electrification effort.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.