Recalls Be Damned! Toyota Annual Profits Up 48 Percent

Recalls Be Damned! Toyota Annual Profits Up 48 Percent

Despite record recalls and public humiliation over quality control scandals, Toyota announced that it expects to see a profit of $3.35 billion by the end of their fiscal year in March, a 48% increase.

Toyota sales rose 24 percent in April,  as strong incentives helped Toyota move cars like the Corolla and Prius. Despite the strong performance, Toyota Senior Managing Director Takahiko Ijichi said that the recall of 8 million vehicles for unintended acceleration issues cost the company 50,000 sales and $1.94 billion.

Despite the setbacks, analysts are optimistic about Toyota’s prospects, especially in the crucial North American market. “Based on the recent sales numbers, the recalls aren’t posing a problem,” said Gentoku Kiyokawa, a fund manager at Fortis Investments in Tokyo, in an interview with Automotive News.

Still, Toyota faces tough competition from renewed competitors like Hyundai and Ford. Hyundai in particular poses a threat to Toyota’s dominance, as the Sonata sedan has seen sales skyrocket by 57 percent in April, while the Camry has only increased by 10 percent.

[Source: Automotive News]

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