Toyota confident that Lexus brand will be profitable in Europe

Article by Christian A., on September 28, 2012

Toyota is confident that its Lexus brand will be profitable in Europe even with a difficult, highly competitive environment and a not so ideal yen/euro exchange rate. At the Paris Auto Show, Didier Leroy, the CEO of Toyota Motor Europe, said in an interview that Lexus could report profits within two to three years even if production stays in Japan.

Leroy declined to divulge specific loss figures of Lexus in Europe. In an interview with Automotive News Europe, a Lexus spokesman said that the brand's profits in Europe depend on its hybrid lineup, which makes up about 85% of its sales in western Europe and 60% of its sales in Russia.

Lexus is getting ready to launch a new hybrid model based on the Lexus LF-CC hybrid coupe concept it debuted at the show. Leroy added that its Lexus sales volumes in Europe were not currently high enough for the car to be produced locally in the region but he didn’t discount the possibility of future production in the region.

Leroy predicts that Lexus will be able to sell 46,000 units in Europe, including Russia, compared with 44,000 units sold in 2011. In its last fiscal year, Toyota Motors Europe (which includes Toyota and Lexus) was profitable due to its financial services division.

However, its automotive unit reported losses. Leroy is anticipating that Toyota Europe's automotive business and its financial services division in Europe would record profits for the fiscal year that ends on March 31, 2013.

Topics: toyota, europe, profit

If you liked the article, share on:

Comments

Recommended

Is there anything more exciting than a spoiler? Well, for those who didn't know, there are those who have already seen the Mercedes-AMG Project One (in the flesh) way before...
by - April 25, 2017
Does the Honda Passport ring a bell to you? This was the first ever SUV that was sold by the Japanese automaker, but it was not that successful compared with...
by - April 25, 2017
Wagon buyers who prefer their vehicle to be luxurious, you will have an entirely brand new selection at the latter part of this year. Porsche will start rolling out 4...
by - April 25, 2017
McLaren rejects the idea of creating anything other than a sports car. That means that vehicles that would be ideal for families such as an SUV or a crossover are...
by - April 25, 2017
The new and improved Opel Grandland X is out, and this large SUV is something the European market did not know they would need. Now measuring at 14.7 feet (4.48...
by - April 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries