Toyota Motor Corp. Sponsored ADR (TM.US) expands stock buyback size to 1.2 trillion yen.

As demand for Toyota Motor Corp. Sponsored ADR (TM.US) remains strong in key markets such as Japan, Europe, and North America, the world's largest car manufacturer has increased its stock buyback program to 1.2 trillion Japanese yen (83 billion US dollars). According to a filing submitted to the exchange on Tuesday, the Japanese automaker has added an additional 200 billion yen to the 1 trillion yen share buyback plan announced in May. This means that the company may repurchase up to 3.93% of its shares. The decision is said to be based on "recent share price levels." Currently, Toyota's stock price is basically flat compared to January, with just a 1% increase so far this year, while the Nikkei 225 index has risen by 13.4% overall. At the same time, Toyota is delivering strong financial performance. For the three months ending on June 30th, the car manufacturer's operating profit reached 1.31 trillion yen, a 17% year-on-year increase. The sale of its hybrid models in the North American market has been strong, and a weaker yen has helped to boost Toyota's revenue in its home currency. Toyota stated in a release that the stock buyback plan announced in May will continue until April 2025. Increasing buyback efforts also align with broader efforts by the Japanese government to unwind cross-shareholdings that have been formed over decades to strengthen business relationships. As part of a broader effort to unwind strategic stakes in financial partners, Toyota announced in July that it will repurchase 806.8 billion yen of shares from major Japanese banks and insurance companies. Reports have indicated that Mitsubishi UFJ Financial Group (MUFG.US) and Sumitomo Mitsui Financial Group (SMFG.US) are set to begin divesting strategic shares in Toyota worth 1.32 trillion yen.