Toyota, the world’s largest car maker is working hard to reinstate the reliability and dependability of its brand name. Back in the year 2010, Toyota’s Chief Executive Officer Akio Toyoda had to go through the humiliation of making global recalls of millions of the company’s vehicles over the grave issue of sudden acceleration. Toyota has still not recovered from the humiliation completely as every now and then even in the current year the company has to recall its vehicles over safety feature issues. This long line of global recalls is tainting the company’s reputation for superior quality, and it is becoming a heavy burden on Akio Toyoda, who is striving hard to reinvigorate the reputation of the company that his grandfather had founded.
To fix the particular issue of the year 2010, which was most crucial in nature cost the Japanese car major a whopping amount of over 1 billion dollars, and it still remains as a disturbing memory for Toyoda, although the problem is now sorted out.
Nevertheless, these issues are affecting the company’s profits and on the last quarter, Toyota’s profit in North America, which is its largest car market, was below the analysts’ forecasts. Toyota’s car sales in the month of April declined for the first time in one and half year, however the company recovered in May. Toyota’s total sales rose by 2.5 percent at the sales of 207,952 units owing to the increased sales of the Prius, Avalon and Rav 4 vehicles. The investors are hoping for the progress to continue.
Toyota is really working hard to impress its customers and the industry experts and the possibility of the company’s increased success is expected even more as the company unveiled its next generation Corolla sedan. Toyota revealed the next-gen Corolla that had been waiting for long for an overall redesign, and the evolved design language of the 2014 model has really impressed the industry experts. The world’s media is also all praises for the new avatar of the Corolla that has really transformed its appearance as compared against its previous model. The new Corolla should also impress the investors of Toyota.
The U.S. shares of Toyota have jumped by around 25% in 2013, outshining the company’s prominent Japanese rival Honda and U.S rivals like General Motors and Ford. The weak valuation of yen had supported the Japanese car maker in the U.S, and the company forecasted that its revenue as well as profit will jump up to their peak levels in more than six years in the financial year of 2013-14.
The Japanese auto maker’s shares are cheap and the company also pays a dividend, which should draw more investors.
In the near future, if yen’s valuation continues to be weak and if the consumers show positive interest in Toyota cars, then the company would continue to progress and forget its previous woes. Meanwhile, Toyota works harder to ensure that all its cars provide the superb quality and efficiency that the global consumers expect the company to offer.
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I am into the auto blogs field for quite a long time. Living my passion of reviewing cars.
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