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Toyota expects N.A. turnaround by next fiscal year

08/07/2009, 11:21 AM

By Drew Johnson

Despite four consecutive quarterly losses in the North American market, Toyota says it is poised for a return to profitability by 2010. The Japanese automaker posted a $38.7 million loss last quarter, but plans to be back in the black during the fiscal year 2010, beginning April 1.

Additionally, Toyota says it will reach its U.S. sales goal of 1.6 million units this year. Toyota’s U.S. sales have plummeted 34.2 percent this year, but the automaker’s sales were only down 11.4 percent last month – thanks in part to the cash for clunkers program.

Toyota’s newfound focus on cost cutting has also improved the company’s fiscal outlook, with full-year losses expected to total $7.85 billion. Previous estimates suggested Toyota would be $8.9 billion in the red by the end of the fiscal year.

Toyota has also managed to keep inventory levels in check, now tallying a 29-day supply of vehicles — the lowest level of any automaker in the U.S.

However, Yoshimi Inaba, Toyota’s North American chief, says that increased sales must accompany Toyota’s cost cutting measures if the automaker is to return to profitability. “My imminent task is to bring our North American business back in the black,” Inaba told Automotive News. “Cost cuts are important, but there is a limit to them. We need to sell large volume.”

Inaba expects total U.S. vehicle sales to top out at about 10 million units this year.

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08/07, 11:33 AM

posted by:

JakeK66

Even thought I hate to say this, a profitable Toyota is good for everyone. We need profitable companies and I’m happy that this is coming out, this means they see recovery.

08/07, 11:37 AM

posted by:

Bankruptcy2009

I think Toyota was Great for the Lazy asses we’ve had running Detroit and its not just The Execs at the Company’s its been the Unions which I am all for but not for the absolute Greed of HS educated but college paid workers

08/07, 11:40 AM

posted by:

Dante_JoseCuervo

Very nice, good to see Toyota doing something. Now if Gm would do that…. cause Ford is kicking butt too right now.

08/07, 11:44 AM

posted by:

Borat

I do think that Toyota has the best range of products. They have green mobiles for tree huggers and fuel burning monstrosities for anatomically challenged. Lexus still on top of luxury charts. Once economy picks up a little they will do well.

08/07, 12:41 PM

posted by:

johnnycanuck

Sure Borat, Toyota has the best range of products. It’s right up there with General Electric, Black & Decker and Maytag.

08/07, 12:57 PM

posted by:

Bankruptcy2009

lol @ Mr. Canunuck. How can we keep the Maytag repairman from getting bored those washers are built so well they never need a repair man!

08/08, 10:15 AM

posted by:

ahnuconun

When the dust settles after all this crap, you will see the Borg… uh, I mean Hyundai on top of the heap!

 
 
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