Declining Passenger-Car Demand Driven by North America's Shift to SUVs
First written in FY2019-Q2. 5 of 5 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2020-Q3.
Kasai Kogyo moved to the "Worse" side of this theme in 2018.
0 other companies' latest entry also says "Materialised".
- FY2020-Q3MaterialisedAnnual report
「The substantial decline in passenger-car demand caused by the shift in demand toward SUVs in the U.S. market affected production of vehicle models ordered by the Company. In addition, application of ASC 606, “Revenue from Contracts with Customers,” from the first quarter of the fiscal year reduced revenue by ¥736.9 million. As a result, revenue was ¥6,283.5 million, a decrease of ¥1,137.8 million year on year (−15.3%), while segment profit, due to higher new-vehicle-related costs, was ¥73.9 million, a decrease of ¥56.4 million (−43.3%).」
The decline in passenger-car demand accompanying the shift toward SUVs in North America and continued production cuts for ordered vehicle models resulted in revenue down 15.3% and segment profit down 43.3%. - FY2020-Q2MaterialisedAnnual report
「Due to a substantial decline in passenger-car demand caused by the shift in demand toward SUVs in the U.S. market, production of vehicle models ordered by the Company was also reduced. As a result, revenue was ¥4,328.4 million, a decrease of ¥627.8 million year on year (−12.7%), while segment profit, also affected by higher new-vehicle-related costs, was ¥82.9 million, a decrease of ¥66.5 million (−44.5%).」
The continued shift in demand from passenger cars to SUVs in North America resulted in production cuts for ordered vehicle models and a 12.7% decline in revenue. - FY2020-Q1MaterialisedAnnual report
「In the automotive industry related to the Company's Group, U.S. new-vehicle sales declined overall, as robust sales of light trucks such as pickup trucks and SUVs were offset by continued weakness in passenger-car sales.」
The disclosure states that light-truck sales in the U.S. remained firm while passenger-car sales continued to be weak, indicating that the shift in demand among vehicle types is continuing. - FY2019-Q3MaterialisedAnnual report
「In the United States, despite a decline in demand for passenger cars, sales increased by ¥611 million, or 0.8%, year on year to ¥7,421.3 million, due to growing demand for SUVs and the effect of new vehicle launches. However, segment profit decreased by ¥919 million, or 41.3%, year on year to ¥1,304 million, due to labor market tightness, higher labor costs associated with securing trained personnel, new vehicle launch costs, and the impact of production stoppages at certain customers caused by natural disasters in Mexico.」
While passenger-car demand continued to decline, revenue increased due to expanding SUV demand and the impact of new-vehicle launches, but profit declined as other cost factors also contributed. - FY2019-Q2MaterialisedAnnual report
「In the U.S. market, the shift in demand toward SUVs caused a substantial decline in passenger-car demand. As a result, production of vehicle models ordered by the Company was reduced, and revenue was ¥4,956.3 million, a decrease of ¥219.5 million year on year (−4.2%),」
The shift in demand toward SUVs in the North American market caused passenger-car demand to decline, resulting in production cuts for ordered vehicle models and a 4.2% decline in revenue.