Toyota Officially Wants To Make More Than 10 Million Units This Year - Very Carefully
By now, most of you who care about these things are aware that Toyota today announced an annual net profit of $9.73 billion for the fiscal that ended on March 31, more than three times of what the company made in the year before. By now you probably heard that the “weaker yen” is the reason. Not really, says Toyota, claiming that “effects of FOREX rates” added only $1.5 billion to the bottom line. There is another number you may not have heard.
Buried in the supplemental materials, handed out at 3pm in the packed basement conference room at Toyota’s Tokyo HQ, is the news that for the first time, Toyota budgets to cross the 10 million unit mark this fiscal. According to its plans, Toyota wants to sell 10.1 million units this year, including Lexus, Daihatsu and Hino, and, often a source of confusion in the past, but no longer this time, including China. China is looking a bit better after emotions over the islands have cooled down a bit. April sales in China were at 93 percent of their previous year levels, I hear today, and with a few new and sorely needed products, Toyota wants to sell more than 900,000 units this fiscal in the Middle Kingdom.
A few weeks ago, we predicted 10.06 million units for Toyota’s calendar year.
If Toyota delivers this plan (and they usually budget like a porcupine having sex – very carefully) it would be the first auto manufacturer in the world to cross the magical 10 million unit line.
Toyota is even more careful when it comes to bricks and mortar. Other than some OEMs who build new factories faster than cars, overcapacities elsewhere be damned, Toyota wants to use what it has. It will stick with building planned factories such as in Thailand and Indonesia. It may add a little capacity here and there, but otherwise: “No new factories,” its CEO Akio Toyoda says today.
Whenever we talk about production volumes and new records, there are the usual comments that what counts is profits, not volume. Toyoda agrees. “Growth is not the same as the expansion of sales volume,” says Toyota’s CEO today. “Some may think that now is the time to get aggressive. However I think that we are just about to start our sustainable growth.”
Like no other carmaker, Toyota went through a series of gruesome catastrophes that would have brought many others to their knees. What did not kill it, made Toyota stronger. It also taught it to plan for other catastrophes.
Big 3 ComparisonNet Profit (billion)Operating profit (billion)Units CY 2012Toyota$9.73$13.369,909,440GM$4.86$7.869,489,000Volkswagen$28.45$15.089,070,000Financial data: GM, VW: Year ending 12/31/2012Toyota: Fiscal ending 3/31/2013For those who advocate that profits are more important than volume, here is a handy table with volumes for the last calendar year and profits for last year’s reporting period. In case you wonder about Volkswagen, refresh your memory here.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
More by Bertel Schmitt
Latest Car Reviews
Read moreLatest Product Reviews
Read moreRecent Comments
- Kwik_Shift_Pro4X As much problems as I had with my '96 Chevy Impala SS.....I would love to try one again. I've seen a Dark Cherry Metallic one today and it looked great.
- Susan O’Neil There is a good reason to keep the Chevrolet Malibu and other 4 door family sedans! You can transport your parents and other somewhat handicapped people comfortably and safety! If someone can stand and pivot you can put them in your car. An armrest in the back seat is appreciated and a handle above the door! Oh…and leather seats so your passenger can slide across the seat! 😊Plus, you can place a full sized wheelchair or walker in the trunk! The car sits a little lower…so it’s doable! I currently have a Ford Fusion and we have a Honda Accord. Our previous cars were Mercury Sables-excellent for transporting handicapped people and equipment! As the population ages-sedans are a very practical choice! POV from a retired handicapped advocate and daughter! 😊
- Freddie Remember those ads that say "Call your doctor if you still have...after four hours"?You don't need to call your doctor, just get behind the wheel of a CUV. In fact, just look at one.I'm a car guy with finite resources; I can't afford a practical car during the week plus a fun car on the weekend. My solution is my Honda Civic Si 4 door sedan. Maybe yours is a Dodge Charger (a lot of new Chargers are still on dealer lots).
- Daniel J Interesting in that we have several weeks where the temperature stays below 45 but all weather tires can't be found in a shop anywhere. I guess all seasons are "good enough".
- Steve Biro For all the talk about sedans vs CUVs and SUVs, I simply can’t bring myself to buy any modern vehicle. And I know it’s only going to get worse.
Comments
Join the conversation
How come VW's net profit is bigger than its operational profit?
Great title: "Toyota Officially Wants To Make More Than 10 Million Units This Year – Very Carefully" Carefully enough, one hopes, to correct the rather egregiously poor fit and finish of the current Camry's dashboard. You know, using only the production facilities they already have.