The Clap
Toyota (NYSE: TM) saw its production rebound by 30%, but supply chain shortages are set to offset the benefits of the rebound.
The Deets
The company is expected to record profits for Q3 as auto chip shortages gradually improve, showing promise for H2 2022.
The company did not provide a new forecast and it expects to miss the 9.7 million target it set for production.
So What
Rebounding production, in addition to a weakening Yen, may drive Toyota to its first profit in three quarters.
Now What
In addition to supply chain disruptions, Toyota faces long-term challenges with regard to its push into the EV industry.