Consolidated vehicle sales for the quarter were 1.82 million, an increase of 419,000 units compared to the same period last fiscal year. It is a remarkable performance in light of the quality issues that the company has faced since the beginning of 2010. The most impressive figure in the Toyota financial statement was the improvement in operating income in North America where sales have been hurt by the negative publicity over the recalls.
The earnings show that the damage to the Toyota brand has not been great enough to drive the company into financial trouble. It is also testimony to Toyota’s ability to keep operating costs low–a habit that served it well through the global recession.
Toyota faces challenges now from a resurgent GM and Ford, and global powerhouse VW. Toyota’s presence in China is not as strong as some of its rivals, and the company must do well in what has become the world’s largest car market.
Toyota’s recall problems seem to be largely behind it. Its brand power is nearly untarnished, and that means it may be able to recover its reputation as the leader in producing quality, affordable cars. The firm has turned a corner, the quarterly results seem to show and can move ahead aggressively again.
Douglas A. McIntyre
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