Toronto, Ontario — This week, we look at the rise and fall of automakers and the economic market as Toyota posts a record global output for the first fiscal half; Fisker’s stock falls following the announcement of reduced prices; and Mitsubishi makes plans to expand its Parts and Distribution services.
Going for growth
On Monday, Toyota posted record global production and sales figures for the fiscal half in the April to September period.
The automaker announced 5.06 million vehicles built worldwide, up 12.8 percent from the same period last year.
This increase marks record production levels for the automaker for the first time in four years. It is also the first time that Toyota has seen its production and sales both top the 5 million mark in a fiscal first half.
In particular, Toyota’s sales grew for electric vehicles, with sales jumping to 58,984 units sold globally—an increase of 38.1 percent.
Monthly output also grew 1.5 percent from the previous year to 900,919 units sold globally.
Investor irritation
Following the announcement of a price cut for its premium electric vehicles, Fisker’s stock began to fall with a price decrease of 3 percent on October 23 and then a 7 percent decrease following October 26.
Fisker specifically announced that it was reducing the price of its Ocean Extreme model by $7,500 to a total price of $61,499. This price change will go into effect immediately.
Chief Executive Henrik Fisker commented that while the price reduction is a benefit for consumers, investors don’t like price cuts. “It can signal less demand or more competition. Both are likely true,” he said.
Building benefits
Earlier this month, Mitsubishi opened an expanded Parts Distribution Centre (PDC) in Mississauga.
The centre was first opened in 2011 and featured 97,000 square feet of space allowing it to support what was, at the time, a network of around 80 dealers across Canada.
With the number of dealers now expanded to 96, the original PDC space was overflowing.
President and CEO Kenji Harada officially cut the ribbon on the adjacent 67,000-square-foot warehouse unit which is connected to the original space through large openings in the walls.
In addition to allowing all of the off-site storage to be brought to the expanded space, it will also allow the MMSCAN to reintroduce a number of dealer support programs that had been put on hold.
Notably, the Dealer Obsolescence Program will resume in November allowing dealers to send back unsold parts for a credit.
