Toyota Projects Higher Profits Despite Recalls

VOA Breaking News
Voice of America
February 8, 2011 at 10:25 am

Toyota Motor Company is projecting sharply increased profits in spite of setbacks caused by an embarrassing wave of recalls and the rising Japanese yen.

A U.S. government report on unintended acceleration problems in Toyotas — the cause of some of the recalls — was due to be released later Tuesday.

In Japan, Toyota officials said profits had fallen by 39 percent in the three-month period ending in December compared to the same period a year ago, mainly because of the high yen and the end of some Japanese government subsidies. But the company said profits for the latest nine-month period were up sharply, and it forecast earnings for the full fiscal year of about $6 billion — up from earlier projections of $4.3 billion.

The company said booming sales in Asia, Africa and Latin America more than made up for a slump in the United States, where quality concerns are cutting into its market share.

Toyota, which surpassed General Motors to become the world’s largest automaker in 2008, has had to recall more than 12 million vehicles worldwide since late 2009. But Senior Managing Director Takahiko Ijichi told reporters in Tokyo Tuesday that the company is slowly winning back the trust of consumers.

He said he believes “the wound is now half healed.”