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Toyota profits slide 19%, tariff costs overwhelm gains
Surging vehicle deliveries in Japan and North America couldn't shield Toyota from a US$6.1 billion tariff hit in the first half, dragging operating income down 19% year-on-year to ¥2 trillion (US$13.7 billion) despite hitting 105% of prior year sales volumes. The automaker's full-year operating profit forecast of ¥3.4 trillion (US$23.3 billion) represents a 29% decline from fiscal 2025, with U.S. import duties alone slashing ¥1.45 trillion (US$9.9 billion) off the bottom line. Net income for the six months to September fell 7% to ¥1.77 trillion (US$12.1 billion), while consolidated vehicle sales reached 4.78 million units - up from 4.56 million a year earlier as product competitiveness offset macro headwinds. Electrified vehicles now comprise 46.9% of Toyota's mix - up from 44.4%, driven by hybrid sales in North America and China.Profit collapseThe tariff blowout compounds a turbulent two years for Toyota, marked by certification scandals that forced production halts and triggered government correction orders. Between June 2024 and August 2024, Japanese authorities uncovered improper testing on seven models, including the RAV4 and Camry, with issues ranging from falsified pedestrian protection data to modified steering
Motoring
US EV sales collapse after federal tax credits expire
All-electric vehicle sales in the United States collapsed in October following the expiration of up to US$7,500 in federal purchase incentives. Multiple carmakers reported double-digit declines as consumers pulled forward purchases before the Trump administration eliminated the credits. Ford Motor, which held third position in U.S. EV sales through Q3, logged a 25% year-over-year drop in October all-electric deliveries. The company's Mustang Mach-E slumped 12% whilst the F-150 Lightning slid 17% as buyers who rushed to secure credits in September left dealer inventory depleted.Credit: Ford Toyota reported 18 units sold of its sole battery-electric model, the BZ, down from 1,401 units in October 2024 and 61 vehicles the prior month. Hyundai Motor and Kia posted their top EV models dropping between 52% and 71% year-over-year, with month-over-month comparisons revealing steeper contractions as September marked a record quarter of 438,487 EV units sold ahead of the credits ending. The South Korean marque's Ioniq 5 plunged 80% from September to October, whilst the Ioniq 9 tumbled 71%, according to reported volumes. "Whilst the expiration of the federal tax credit impacted EV sales in the month of October, we still saw
Motoring
Tesla board warns Musk could walk away if not compensated
The Tesla board has warned that CEO Elon Musk will quit if shareholders don’t pass his US$1 trillion pay package. In a letter to shareholders, chairperson of the Tesla board Robyn Denholm said the company was at a “critical inflection point” and added that losing Musk could lead to the carmaker losing “significant value”. “Do you want to retain Elon as Tesla’s CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions and the most valuable company in the world?” Denholm wrote in the letter. “When negotiating this performance award, we necessarily considered what Tesla’s future without Elon would look like, and we did not believe it was the future that our shareholders deserve.” The proposed compensation plan that shareholders will vote on could net Musk as much as US$1 trillion if he can hit a series of milestones, including taking Tesla to a US$8.5 trillion market cap by 2035. The pay package is also contingent upon Tesla delivering a cumulative total of 20 million cars and one million Optimus robots over the next decade. Other milestones Musk would need to reach include putting one million robotaxis on the road, boosting the number of subscribers to the company’s Tesla Full Self-
Motoring
Toyota production surges, US demand up despite tariffs
Toyota’s worldwide production grew by 11.1% year-over-year in September, with strong demand in the United States despite tariffs. Global Toyota and Lexus production was 918,146 vehicles. Sales were up 3.1% to 879,314. U.S. Toyota and Lexus sales were up 14.2% to 185,748, which Toyota credited to “recovery from last year’s production stoppage caused by recalls of the TX and Grand Highlander as well as strong performance of hybrid vehicles”. The U.S.’ US$7,500 tax incentive for electric and plug-in hybrid vehicle purchases ended on 30 September, with EV brands like Tesla also reporting a large spike in sales ahead of its expiry. Sales in Japan were down 5.2% to 128,162. Production in the U.S. was up 28.5% to 123,649, while production in Japan rose by 8.5% to 301,626. Toyota’s Daihatsu and Hino subsidiaries both reported a decline in production last month. Daihatsu production was down 1.1% to 109,361, while Hino production fell by 30.9% to 8,599. Toyota and Lexus exported 194,643 vehicles from Japan in September, a 27.9% increase. The U.S. lowered tariffs on imported Japanese vehicles from 27.5% to 15% in September. The company had previously forecast a JP¥1.4 trillion hit from the U.S.’ tariffs during its last e
Motoring
GM revs up market with profit upgrade
Shares in General Motors (GM) surged after it upgraded its full year profit forecast despite announcing a 56.6% plunge in net income for the third quarter of the 2025 (Q3 FY25) financial year. The automotive manufacturer said net income was US$1.327 billion (A$2.044 billion) in the three months ended 30 September 2025 compared with $3.056 billion in the previous corresponding period. Earnings before interest and tax (EBIT) fell 18% to $3.4 billion, diluted earnings per share (EPS) dived 49.6% to $1.35 and revenue was little changed at $48.591 billion.Source: General MotorsGM updated FY25 guidance for EBIT to between $12 billion and $13 billion from $10 billion to $12.5 billion and diluted EPS to $8.30-$9.05 ($8.22-$9.97) but downgraded the forecasts for net income to $7.7 billion-$8.3 billion ($7.7 billion-$9.5 billion). The company also revised down the gross impact of United States tariffs to between $3.5 billion and $4.5 billion in FY25 from $4 billion to $5 billion, assuming they stayed at current levels. The shares (NYSE: GM) closed $8.62 (14.86%) higher at $66.62 on Tuesday (Wednesday AEDT), capitalising the company at $63.43 billion, after earlier reaching an intra-day peak $67.55, the highest for at least 10 ye

Motoring
Michelin lowers guidance amid lower North American sales
Tire manufacturing company, Michelin, has lowered its guidance for 2025 following a sharp decline in sales in North America, compounded by a decline in the dollar. The company now expects operating income between 2.6 billion euros and 3.0 billion euros, which is down from the previous guidance of 3.4 billion euros. This comes as the tyre manufacturer posted sales volume growth in every region except North America for the third quarter sales. In North America, sales volumes fell almost 10%, with “plummeting demand for truck and agriculture segments, a weak sell-out market in truck replacement tyres that reflected the soft economy, and headwinds in sales to consumers. "On the margin front, group competitiveness has been impacted by tariffs," Michelin said in a statement. North America is the company’s largest market, and despite manufacturing locally to avoid tariffs, Michelin is seeing a knock-on impact from weaker car sales after manufacturers were forced to hike prices and customers became more cautious. Michelin also lowered its expected free cash flow before M&A to between 1.5 billion euros and 1.8 billion euros, down from more than 1.7 billion euros, due to the weaker dollar.
Motoring
US new car prices top $50k as EV sales soar
The average price United States buyers paid for a new vehicle was over US$50,000 (A$76,822) for the first time last month, due to rising electric vehicle and luxury sales. The average transaction price for new vehicles was $50,080 in September, up 2.1% from August and rising 3.6% year-over-year, according to Cox Automotive. Electric vehicles’ U.S. market share reached a record 11.6%. “While there are many affordable options out there, many price-conscious buyers are choosing to stay on the sidelines or cruising in the used-vehicle market. Today’s auto market is being driven by wealthier households who have access to capital, good loan rates and are propping up the higher end of the market,” wrote Cox Automotive executive analyst Erin Keating. “Tariffs have introduced new cost pressure to the business, but the pricing story in September was mostly driven by the healthy mix of EVs and higher-end vehicles pushing the new-vehicle ATP into uncharted territory.” Electric vehicle sales reached a record 437,487 across the third quarter. The U.S.’ $7,500 tax incentive for EV purchases expired on 30 September, sending sales up almost 30% as consumers rushed to buy. Tata Motors, which owns Jaguar Land Rover, had the highest av
Motoring
Ferrari shares crash after shaving EV targets by 50%
Ferrari's share price took a 16% haircut on Wall Street after the Italian luxury carmaker drove in guidance on Thursday that failed to set pulses racing. The Maranello-based manufacturer upgraded its 2025 net revenue guidance to at least €7.1 billion (A$12.5 billion), up from a previous forecast of more than €7 billion (A$12.4 billion). For 2030, Ferrari is targeting net revenues of around €9 billion (A$15.9 billion) with earnings before interest, tax, interest, depreciation and amortisation (EBITDA) of at least €3.6 billion (A$6.4 billion). On paper, the numbers look solid. Ferrari is exceeding its 2026 profitability targets a full year ahead of schedule, planning to increase dividend payouts from 35% to 40% of adjusted net profit. It is also launching a €3.5 billion (A$6.2 billion) share buyback program from 2026 through to the end of the decade. But the market was looking for something higher octane. Analysts at Citi noted that Ferrari's guidance fell below their lower growth case estimates and reflects what they see as conservatism from management. Concerns were not just about the numbers but what they signal about operating leverage through the coming cycle, with potential risks to both consensus earnings
Motoring
Transurban sticks by payout as traffic increases
Transurban has reaffirmed its distribution guidance after reporting a 2.7% increase in average daily traffic (ADT) for the three months ended 30 September 2025. The toll roads operator said ADT averaged 2.6 million trips per day as it increased 1.7% in Sydney, 3.2% in Melbourne, 2.6% in Brisbane and 6.8% in North America in the September quarter. Chair Craig Drummond said the Board was excited about the project milestones on the horizon and the pipeline of opportunities being evaluated, which would continue to drive long-term value and distributions for security holders. He said the company would open three major projects in the next year, and beyond that, it was actively exploring another $10 billion pipeline of potential opportunities. The Board also reaffirmed its 2026 financial year (FY26) distribution guidance on the back of good traffic results for the September quarter. “Transurban reaffirms that the FY26 distribution is expected to be 69.0 cps, representing approximately 6% growth on FY25,” Drummond said in an address to the annual general meeting. Sydney ADT was supported by growth on WestConnex (+8.2%), NorthConnex (+2.8%) and M5 West (+0.8%) despite three-times higher rainfall than a year ago and CBD a