Toyota Profits Boosted by Weaker Yen, Abenomics

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Nov. 6 (Bloomberg) -- Paul Newton, automotive analyst at IHS, examines results from Toyota, the impact of a weaker Yen on profits and how the automaker fared against its competition. He speaks on Bloomberg Television’s “The Pulse.”

The yen is now 25% the valued.

-- devalued.

When you export them, it will have a massive impact.

They have also invested in electric vehicles, which have not yet taken off.

A are involved in certain markets that are not performing quite as well.

How much longer can this carry on for?

You have the yen coming down.

Is there an expectation that it will continue to be as profitable as it is?

There are some interesting contingencies.

There was an announcement that slipped under the radar about their parts-sourcing modules and making their vehicles more dynamic.

They are looking for lower central of cavity -- center of rabbit he.

They are also looking for dynamics.

You look at the styling direction that the corolla has taken combined with attempts to make their vehicles more appealing and more emotional to drive.

They are clearly aware of where they are and they have done well to come through a dreadful couple of years.

They are changing the dynamic as a company.

Who will be most affected by that in terms of the competition?

Everybody would.

They are the largest manufacturer on the planet by numbers.

They are looking at using these new dynamics for the company, this new brand statement, to really attack the more desirable brands.

Toyota has been seen as something of a -- utility, cars as white goods.

They are successful at it.

You also see a limited scope for improvement.

That is slightly under pressure because it will always be seen as utilitarian.

More dynamic cars, more dynamic styling, they are clearly looking to move up the value chain.

Fuel cells are a big part of the company's future, according to management.

Others have slightly overdone the comments, slightly more skeptical about what the technology will deliver.

When you buy a car company, are you making a bet on that kind of technology, that kind of future?

Are you want to be more careful as you look around, who is doing what?


The ev conversation is separate from hydrogen.

Hydrogen faces enormous hurdle in terms of distribution.

The technology is reliant on fuel cells.

It is likely to only ever be in each player -- a niche player.

If they can use that as their halo product, the rest of the brand, the rest of the company benefits from that.

This is him talking about his share price.

The stock price that we have is more than we have any right to deserve.

It is not as though -- i am not going to say we deserve every penny of that.

It is more than we have to deserve.

Stocks are down premarket as we head into the u.s. trading session.

As an automotive analyst, how do you view tesla in the world of carmakers?

Incredible share price and incredible multiples.

Supply limited, cannot get enough batteries to sell these things.

How do you think about tesla in the universe of car companies?

It is something of an anomaly.

It has come from a completely -- there is no history with the brand.

The person driving it is extremely vocal, media savvy.

The company is producing what very few companies do, which is a successful and premium electric water which sells at quite a price.

The multiples, from our perspective, in terms of volumes , sales, customer base, do not stack up.

Take the valuation out.

What role does it play?

Does it act as a catalyst?

Bmw yesterday was talking about the fact that they were the peak investment into this card technology.

They are spending an awful lot of money.

Would we be as far along if tesla had not done what it has done?

They are certainly an element to that.

Bmw started a long time ago though.

They have been investing 5-7 years.

The interesting way this is developing is if you look at nissan, who are not doing terribly well, you look at tesla and bmw and the i3 is being sold out everywhere.

It is amazing.

They are bringing out i8. again, huge interest.

It seems that currently, electric cars are more for the premium buyer then the people who have a lot of disposable income to spend on an electric car that does not fulfill the traditional role of a motor vehicle in terms of personal transport.

It is interesting.

A little bit of a rethink required.

Great to see you.

Thank you for your time.

Francine, over to you.

Let's have a look at some corporate news.

Apple has released a report on the u.s. government request for information on customer accounts and devices.

The company received more than 5,500 requests this year already.

Fiorelli has cut its profit

This text has been automatically generated. It may not be 100% accurate.


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