Toyota Europe’s auto unit to post first operating profit in five years

Article by Anita Panait, on December 28, 2012

Didier Leroy, chief executive of Toyota Europe, told Automotive News that its automotive operations will post a profit in the current fiscal year, which ends in March 2013, despite a difficult market in the region. Leroy forecasted that Toyota Europe would post a profit earlier this year, before economic conditions in Europe started to get worse.

Toyota attributed the financial turnaround of its European operations to a deep restructuring that commenced in mid-2010. The cost cuts made it viable for Toyota Europe to turn a profit at a volume of over 800,000 vehicles, the same figure that the carmaker expects to sell in the region in its fiscal year ending in March 2013. In the past, Toyota Europe’s automotive business posted losses despite selling more vehicles.

The carmaker’s automotive unit last posted a profit in 2007, when it sold a record of nearly 1.3 million vehicles in Europe. But the unit’s fortunes started to fall thereafter.

Toyota has been making up for the losses of its automotive unit through a strong performance by its financial services unit, allowing it to post a combined consolidated profit in Europe. Leroy is expected to make all divisions of Toyota Europe become successful, and there are indications that he’s making good progress.

In the first half ended Sept. 30, 2012, Toyota Europe posted a 14.1-percent increase in vehicle sales to 412,000 units and a JPY12 billion (EUR114 million) operating profit for the consolidated business.

In the first half ended Sept. 30, 2011, Toyota Europe’s combined operating losses were JPY1.9 billion yen. Toyota considers Europe as its fourth-largest market, after North America, Asia (excluding Japan) and Japan.

If you liked the article, share on:

Topics: toyota, europe, profit

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 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