While the American automakers have made drastic comebacks since the recession, no car company has had a bigger revival than Toyota. In spite of having huge recalls, a tsunami in Japan and a steep drop in sales, Toyota has hit the jackpot. The automaker says it’s on pace to earn its biggest-ever annual profit for the company in the fiscal year that ends this month. Toyota projected that it would earn net income of 1.9 trillion yen for the year (about $18.8 billion). That figure would surpass the profit of 1.7 trillion yen reported by Toyota six years ago, before the global financial crisis, and that’s most significant.
In a recent report, The New York Times said that Toyota’s annual profit will exceed the combined earnings in 2013 for General Motors (GM), Ford and the Chrysler division of Fiat Chrysler Automobiles. This is most interesting when one considers all of the safety problems and recalls Toyota has had in the past few years. As you will recall, millions of its cars were recalled for problems with unintended acceleration.
Last year, Toyota was the best-selling automaker in the world for a second consecutive year, beating out GM and Volkswagen of Germany. Toyota sold 9.98 million new vehicles in 2013. Toyota, if it meets its targets, could become the first automaker in 2014 to sell more than 10 million new cars, trucks and sport utility vehicles.
Net profit soared in Toyota’s most recent quarter that ended in December. For the period, the automaker earned 525.4 billion yen (about $5.2 billion), up from 99.9 billion yen for the similar period the previous year. Revenue for Toyota for the quarter climbed 24 percent to 6.59 trillion per year. Incidentally, the net worth of Toyota is about $900 billion. Hopefully, in addition to making lots of money, Toyota will make safety a top priority for a change.
Source: New York Times
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