Toyota will hold off on EV investment decisions until ‘the very last moment’ as profits slip
Toyota is tightening the reins after seeing its first quarterly profit drop in two years. To maintain profits, Toyota plans to “hold off on investment decisions until the very last moment,” including EV and hybrid investments.
Toyota announced that its operating income in the first half of fiscal 2025 fell to around $16 billion (2.64 trillion yen).
In the second quarter, operating profit slipped 20% to about $7.55 billion (1.16 trillion yen), Toyota’s first quarterly profit loss in two years.
The lower profits are due to fewer car sales caused by certification issues that caused Toyota to pause production of its popular Yariss Cross and Corolla Fielder in Japan. A Prius recall in the US also led to fewer cars being sold globally.
As a result, Toyota’s global output fell for the first time in four years in the first half of fiscal 2025. Toyota built 4.71 million vehicles, down 7% from its record 5.06 million vehicles produced last year.
Toyota’s domestic output fell 9.4%, while overseas production dropped 6%. The company was hit especially hard in China, where domestic automakers like BYD continue squeezing foreign automakers out of the market with competitive, low-cost EVs.
Toyota to hold off on EV investments until last moment
Although Toyota said production is expected to recover in the second half of the fiscal year, the full-year total is expected to be 9.4 million, which is 100,000 vehicles less than last year.
Toyota’s vice president, Yoichi Miyazaki, outlined how Toyota plans to maintain operating income while still investing in the company’s future.
With EV and other next-gen tech investments dragging down profits, Toyota will “hold off on HEV, PHEV, BEV, or FCEV” investment decisions until “the very last moment,” Miyazaki said. The company plans to closely monitor the market before making a decision.
Meanwhile, the company is still advancing new tech, including advanced EV batteries. Toyota’s vice president confirmed the company is developing three types of EV batteries in-house: Ternary, LFP, and all-solid-state.
In March, Toyota’s battery unit (Toyota Battery) became a wholly owned subsidiary. The company said the move helps “optimize timing” and is crucial for mass-producing different types of batteries.
“There are two main things we want to accomplish,” Miyazaki explained. The first “is to increase how quickly we can respond to environmental changes in an age in which it is hard to predict the future.” Secondly, it is “to improve the fundamental capabilities that will enable us to carry on into the future.”
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Leading yard operation 3PL YMX Logistics has announced plans to deploy fully twenty (20) of Orange EV’s fully electric Class 8 terminal trucks at a number of distribution and manufacturing sites across North America.
As the shipping and logistics industries increasingly move to embrace electrification, yard operations have proven to be an almost ideal use case for EVs, enabling companies like Orange EV, which specialize in yard hostlers or terminal tractors, to drive real, impactful change. To that end, companies like YMX are partnering with Orange EV.
“This relationship between YMX and Orange EV is a significant step forward in transforming yard operations across North America,” said Matt Yearling, CEO of YMX Logistics. “Besides the initial benefits of reduction in emissions and carbon footprint, our customers are also seeing improvements in the overall operational efficiency and seeking to expand. Our team members have also been sharing positive feedback about their new equipment and highlighting the positive impact on their health and day-to-day activities.”
This Orange looks good in blue
One of the most interesting aspects of this story – beyond the Orange EV HUSK-e XP’s almost unbelievable 180,000 lb. GCWR spec. – is that this isn’t a story about California’s ports, which mandate EVs. Instead, YMX is truly deploying these trucks throughout the country, with at least four currently in Chicago (and more on the way).
“Our collaboration with YMX Logistics represents a powerful stride in delivering sustainable yard solutions at scale for enterprise customers,” explains Wayne Mathisen, CEO of Orange EV. “With rising demand for electric yard trucks, our joint efforts ensure that more companies can access the environmental, financial, and operational benefits of electrification … this is a win for the planet, the workforce, and the bottom line of these organizations.”
We interviewed Orange EV founder Kurt Neutgens on The Heavy Equipment Podcast a few months back, but if you’re not familiar with these purpose-built trucks, it’s worth a listen.
HEP-isode 26
SOURCE | IMAGES: YMX Logistics.
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On today’s thrilling episode of Quick Charge, we’ve got the all-new Hyundai IONIQ 9 and its “a “rolling living room” pivoting captain’s chairs, Kia gets a go-fast 7 passenger SUV and an updated EV6, while Honda announces plans to start producing solid-state batteries at its new facility in just a few weeks.
We’ve also got big news for American workers – a Minnesota power company is ditching coal for solar while ExxonMobil and LG Chem get to work extracting thousands of tons of lithium out of Tennessee’s soil.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations sitewide. Learn more by clicking here.
You can watch the episode, below.
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Read more: Farm-fegnugen? Volkswagen rolls out an electric tractor.
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Arevon Energy has kicked off operations at Vikings Solar-plus-Storage – one of the US’s first utility-scale solar peaker plants.
The $529 million project in Imperial County, California, near Holtville, features 157 megawatts of solar power paired with 150 megawatts/600 megawatt hours of battery storage.
Vikings Solar-plus-Storage is designed to take cheap daytime solar power and store it for use during more expensive peak demand times, like late afternoons and evenings. The battery storage system can quickly respond to changes in demand, helping tackle critical grid needs.
Vikings leverages provisions in the Inflation Reduction Act that support affordable clean energy, strengthen grid resilience, boost US manufacturing, and create good jobs.
The Vikings project has already brought significant benefits to the local area. It employed over 170 people during construction, many local workers, and boosted nearby businesses like restaurants, hotels, and stores. On top of that, Vikings will pay out more than $17 million to local governments over its lifespan.
“Vikings’ advanced design sets the standard for safe and reliable solar-plus-storage configurations,” said Arevon CEO Kevin Smith. “The project incorporates solar panels, trackers, and batteries that showcase the growing strength of US renewable energy manufacturing.”
The project includes Tesla Megapack battery systems made in California, First Solar’s thin-film solar panels, and smart solar trackers from Nextracker. San Diego-based SOLV Energy handled the engineering, procurement, and construction work.
San Diego Community Power (SDCP) will buy the energy from the Vikings project under a long-term deal, helping power nearly 1 million customer accounts. SDCP and Arevon have also signed an agreement for the 200 MW Avocet Energy Storage Project in Carson, California, which will start construction in early 2025.
Vikings is named after the Holtville High School mascot, and Arevon is giving back to the local community by funding scholarships for deserving Holtville High students.
Arevon is a major renewable energy developer across the US and a key player in California, with nearly 2,500 MW in operation and more than 1,250 MW under construction.
Read more: Minnesota’s largest coal plant goes solar: Sherco Solar comes online
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