Toyota has raised its full-year financial outlook, despite the recall

Article by Christian Andrei, on August 25, 2010

Even with the massive recalls, Toyota has raised its full-year financial outlook. Because of a better-than-expected third quarter, Toyota had bumped its annual forecast ending in March. Initially, Toyota had called for a $3.85 billion operating loss for the fiscal year ending March 31. Since then, it has reduced this figure to $220 million.

It's notable that most analysts had pegged Toyota to lose $418 million on the year. Toyota's latest forecast actually does take into account the latest rash of recalls.

Toyota set aside about $1.1 billion in recall costs and expects the recall to decrease sales by about 100,000 vehicles, equivalent to losing $880 million.

Despite appearances that Toyota's yearly forecast is looking up, it has yet to be seen how Toyota does after its largest recall gets resolved. Toyota's next fiscal year begins on April 1.

In an interview with Reuters, Toyota Senior Managing Director Takahiko Ijichi said that it is currently difficult to measure the impact on sales for the next financial year.

He said that Toyota will do what it can to regain consumers' trust. Toyota's sales dropped 16% in the U.S., Toyota's largest market, in January as a result of the recalls.

Topics: toyota, recall, profit

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
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