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Risks
1. Political Risk: Political instability or unfavorable policies in key markets, particularly emerging markets, could harm Toyota's sales and profitability.
2. Economic Risk: Fluctuating currency exchange rates, increased competition, higher interest rates, and economic recession can make it difficult for Toyota to generate profits.
3. Social Risk: Changes in customer preferences or public opinion can affect Toyota's ability to attract customers and maintain its image as an environmentally-responsible car maker.
4. Technical Risk: Investing in new technology or production processes may involve significant upfront costs, and could have a potentially large downside if the new technology does not perform as expected.
5. Natural Disaster Risk: Natural disasters such as typhoons, floods, and earthquakes can cause significant disruption to Toyota's production facilities and supply chain networks.