Toyota, Honda and Mazda to maintain massive spending on advanced technologies

The controlled approach contrasts with the surgical cuts seen elsewhere in the industry.

Ford Motor Co postponed its commercial services to its standalone vehicle until 2022, for example, and General Motors closed its Maven car sharing service. Some suppliers also swing in projects as they move into a survival mode. It remains to be seen what other Japanese automakers will take. For example, Nissan and Mitsubishi warned of all-year losses.

Currently, Toyota and Honda can withstand their long-term view thanks to the relatively strong financial resources, despite the sudden blow of lower sales and production suspensions.

Toyota is more prepared to deflate today than it was during the 2009 financial crisis. At that time, it had about $ 27.8 billion in cash reserves. Today, thanks to the robust cost control of Toyoda and contingency planning, it has about $ 74.2 billion.

Honda said it is not facing any cash crisis at the moment and has enough lines of credit as a backup.

Canada’s chief financial officer, Kenta Kunn, said the company would delay some plans for the new model due to the slowing epidemic, but said the overall impact would be minimal.

In fact, Toyoda said the company will remain steady with significant investment in research and development, such as the “city of tomorrow” that it is building on the foothills of Mount Fuji.

Despite sales falling in the current fiscal year, Toyota will keep spending on research and development at 1.1 trillion yen ($ 10.2 billion). As a percentage of revenue, research and development expenditures will increase to 4.6 percent, from 3.7 percent.

“We recently planted the seeds for a new Toyota,” Toyoda said. “For this type of new project, we will continue to drive the throttle.”

Honda did not provide R&D expenditures in the current fiscal year. But it spends a greater portion of its revenue on R&D from Toyota, despite being smaller. In the fiscal year that ended March 31, it directed 5.5 percent of its streak towards future technologies.

Mazda, which sold just 1.42 million cars in the past fiscal year, compared to 10.46 million Toyota, spent 135.0 billion yen ($ 1.25 billion) on research and development, or 3.9 percent of its revenue.

Toyota and Honda were both optimistic about the recovery in the United States, which is a major market for each.

Honda executives have warned that the second or third wave of coronavirus outbreaks, which some health officials expect will arrive this fall, pose a threat to stable market stability. But Honda began the gradual restart of its US factories this month, and opened showrooms.

“The merchants started their operations gradually,” said Hachigo. “Nationally, it may be summer as soon as sales activities are back to normal.”

Naoto Okamura contributed to this report.

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