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

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 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