Despite Toyota Motor Corp.'s improved earnings forecast announced Tuesday for the current business year, the automaker still needs to overcome a major hurdle — the planned shutdown of a plant in California, the second largest in the U.S.
Analysts welcome the auto giant's plan to close New United Motor Manufacturing Inc., its joint car manufacturing venture with General Motors Corp., as a rational move.
Liquidation of the venture is expected to trigger a sizable one-time cost for Toyota, but the analysts say a quick pullout will benefit Toyota in the long run.