Despite a terrible public relations year for Toyota, the company still raced to a large profit, and a massive improvement over the previous year. Find out more inside.
Toyota posted a surprisingly large 209.4 billion yen ($2.2 billion) profit for their fiscal year, which concluded on March 31. The amount was a massive improvement over their previous annual net total, a 437 billion yen loss.
Despite the profit, vehicle sales fell by 4.36% to 7.24 million. Even though the company sold 330,000 less units, company officials still expect the next fiscal year's income to improve by 48%, totaling 310 billion yen.
The profit is nothing short of a triumph for Toyota, dogged by the aftermath of several recall scandals that affected at least nine million vehicles worldwide. Toyota is under fire in the U.S. where government agencies are investigating how the automaker announces recalls, and the timeliness of their actions. U.S. law stipulates that automakers must make notifications of safety problems in their vehicles within five days of discovering the issue.
Many of Toyota's most popular vehicles have been the center of attention due to accusations of malfunctioning acceleration, braking, and steering mechanisms. Several lawsuits have already been filed against the company by consumers and shareholders, while the automaker has had to pay a $16.4 million fine levied by the U.S. government.