The pandemic has shaken the world. Every person has felt the effects of COVID-19 in some way or another. As we strive for health and safety, economic concerns continue to grow. Some of us are working from home, some not at all. With the outbreak continuing to linger, we can’t help but wonder if there is any economic hope in sight. With the financial crisis still looming in our minds, the question is: are we headed for another Great Recession?
Financial experts have confirmed that America is experiencing a recession, although, quite different from the ones in the past. As of February, the worldwide economy has seen a downturn due to the rapid spread of the coronavirus. The automotive industry has taken one of the biggest hits, with renowned dealers like Toyota and General Motors putting a halt to production. Instead, taking the initiative to provide equipment and supplies to front line workers across the world. With social distancing in place and less people out buying cars, the leaders of the automotive industry must adjust to this new normal.
A short decade ago, Toyota was on the brink of failure. The Japanese automaker experienced its first loss in nearly seventy years and had to sever ties with loyal partnerships just to survive. Now, they are strategically using the lessons from the past to prepare for a challenging yet profitable road ahead. With the slow reopening of the U.S. economy and the expected decrease in sales, Toyota will weather the financial crisis just the same.
Making a loss in unacceptable
As one of the largest automotive producers in the world, Toyota has remained a trailblazer in innovation. From green design to a commitment of mobility, this manufacturer prevails over its competitors and delivers some of the most reliable cars on the market. Don’t expect the current economic downturn to hold this automaker back from achieving significant milestones. Akio Toyoda, CEO of Toyota, announced to shareholders this week that Toyota Motor Corporation will remain profitable despite the setbacks of 2020.
Toyoda reflected on the past economic crisis and his honorable promise that “making a loss is unacceptable.” He shared his strengthened optimism for the future of Toyota while revealing that the company has lowered their break-even point by two million units. This allowed for a profitable March 2020 during the pandemic. With a plan to keep annual output at 3 million cars, the company is prepared to make strident efforts to meet standard operations in the upcoming years.
Loyalty to customers
Toyota continues to humanize their brand by putting their customers first. In an effort to assist Toyota customers during COVID-19, the company has delayed auto loan payments and provided used car rentals. They know buying a new car might be the last thing on your mind. While understanding the economic stress of the current situation, Toyota is still attracting customers through these enticing offers:
Defer your first Toyota payment during the financial crisis
Qualified customers can opt to defer their first car payment for up to 90 days. This offer is eligible for both new and Certified Used Toyota vehicles. As an added bonus, every new Toyota comes with the ToyotaCare – a 2 year maintenance plan that provides 24-hour roadside assistance.
Like many automakers, Toyota is offering 0% APR for up to 60 months on select vehicles. These vehicles include the Camry Hybrid, Corolla Hatchback, Avalon, and RAV4 Hybrid. This tempting offer will likely attract car buyers in search of a good deal – and in return help Toyota clear out inventory.
Toyota is here to help
Whether the world is facing an economic recession or natural disaster, Toyota upholds a social and moral responsibility to their customers. Throughout the pandemic, they have donated thousands of gloves, safety equipment and other supplies to centers across America. Their dedicated commitment to helping individuals on the front lines is obvious.
Despite the economic plunder of COVID-19, the Japanese automaker has worked diligently to give back to the global community. By joining Giving Tuesday, Toyota donated over 2 million dollars to various organizations that are giving back during the coronavirus. The company promoted awareness about hunger and e-learning through #GivingTuesdayNow.
Search #GivingTuesdayNow for more information on how to give back during COVID-19.
With the rise of COVID-19, hunger continues to be a growing issue. Join us during #GivingTuesdayNow as we donate more than $2 million to support organizations on the front lines of providing food assistance and e-learning programs. Learn how you can help: https://t.co/5P53ywiFir pic.twitter.com/ar6EGQDKb6
— Toyota USA (@Toyota) May 5, 2020
Pledge to succeed
Toyota is a prominent leader of the automotive industry. They have a prudent responsibility to pave the way for a profitable future. All manufacturers will struggle through the financial crisis aftermath of COVID-19, but only the strategic will survive. Toyota’s decision to utilize the past economic hardship as a guide to the future will help them succeed. With well-positioned long term goals, this automaker will undoubtedly fare the economic crisis in the short-term.