Toyota joins Volvo, Daimler in H2 push

Toyota Motor reported global sales and production declines for August, with sales falling 6.4% to 790,743 vehicles and production dropping 5.9% to 700,860 vehicles. Decreases were driven by declines in China, the US, and the Middle East, with China's sales down 22.8% for the seventh consecutive month. US sales fell 4.4%, while production was impacted by an 11.3% drop in China and a 6.6% decline in the US, partly due to earthquake-related suspensions in Japan.

The U.S. Transportation Department finalized a rule reducing fuel economy standards for automakers, cutting $60.6B in tech costs through 2031. The rule sets a 34.9 mpg fleet average by 2031, down from 50.4 mpg under Biden's rule. The Alliance for Automotive Innovation, including GM, Toyota, and Ford, supports the decision. The rule also eliminates a credit trading program and phases out certain efficiency credits. Stellantis faced $775M in fines for noncompliance.

Toyota (NYSE:TM) plans to invest up to $6.4B annually from 2028 in factory automation, including 400,000 robots, to address aging infrastructure and labor shortages. The move aims to improve productivity and margins, but execution risks and competitive pressures remain. Operating margin fell to 7.4% in FY2026 from 10.0% in FY2025.

Toyota estimates it may spend up to 1 trillion yen ($6.4 billion) annually from 2028 to automate factories, including its own, group companies, and major suppliers, according to CNBC. The plan involves deploying around 400,000 robots, both humanoid and non-humanoid, but the company has not committed to the investment or specified its duration.

Ford is recalling several vehicle models, including the Explorer, Mustang Mach-E, Bronco, and F-150, due to various safety issues. Jeep is recalling certain models for a tire pressure monitoring system error. Toyota is recalling the C-HR EV for a software bug. Tesla's driverless Cybercab is under federal investigation for certification compliance. Owners are advised to check their VIN for recall eligibility.

Toyota Motor Corp (TM) plans to invest $6.4B to automate factories by 2028, deploying 400,000 robots. Its P/S ratio is 0.75, below historical median, and GF Value™ suggests 7.9% undervaluation. TM has a GF Score™ of 71, with strengths in valuation and profitability but weak momentum. Institutional investors are adding positions, while insiders show neutral activity.