• Feb 4, 2010
Despite internal predictions that its current throttle-related recall costs may dent company coffers by up to $2 billion this quarter, Toyota has raised its projections for the fiscal year ending in March. That's according to Reuters, who note that the increase comes after the automaker beat its third quarter estimates.
Toyota had previously stated that it expected to incur a 350 billion yen loss (around $3.86 billion USD), and now it says it only expects to lose 20 billion yen ($220 million). Toyota's previous forecast was considered "excessive conservative," with outside brokerage houses predicting a loss of around 38 billion yen.

According to the news agency, Toyota says the updated forecast includes around 100 billion yen for recall costs (about $1.1 billion), and another 70-80 billion yen for lost sales (around $830 million), yet at the same time, Toyota says it expects to save some 1.59 trillion yen ($17.5 billion) via "emergency profit measures, an increase over earlier estimates.

Toyota stock has taken a drubbing over the two weeks since this wave of recalls began, with shares having been down as much as 23 percent – some $30 billion.

[Source: Reuters via Automotive News - subs. req.]



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  • 33 Comments
      • 4 Years Ago
      Toyota just released 3rd Quarter net profit results of $1.68 Billion USD. So in three months they made enough profit to cover this entire fiasco. Regarding their stock price, it's been lower just within the last 12 months.

      I'm sure a few years from now, the public will hardly remember it. Hey, I'm not excusing their poor engineering and alleged cover-ups, Toyota should still deal with that and pay the consequences.
        • 4 Years Ago
        "If Ford can recover from the Pinto, Explorer fiasco, and GM can recover from their cars built in the 90's, anything is possible."
        Umm...how exactly did GM recover again? Are they now a greatly profitable automobile company?
        This isn't GM haterade or anything, but while they have a chance at recovering they certainly have not recovered, because having to file for bankruptcy then continuing to bleed market share is not recovering.
      • 4 Years Ago
      Short Toyota
      • 4 Years Ago
      Sounds like they want their sales to accelerate, just like their pedals.
      • 4 Years Ago
      Your idea is flawed...
      So because GM and Ford did it in the past. It is ok that Toyota can do this without any problems? Unfortunately, I am not 50 years old. Sorry for being so young, but I am older than 27. I don't care where the cars manufactured. we are not talking about profits. We are talking about safety. Why don't you read first?
      • 4 Years Ago
      They better watch out for Hyundai.
      • 4 Years Ago
      These two issues (the accelerator recall and the Prius braking issue) both call into question the whole idea of "continuous improvement." If a manufacturer finds even the slightest issue and fixes it on the fly, during production, it raises the question of why they aren't recalling the ones they just built.

      So does that mean the manufacturer must recall everything, every time they make an on-the-fly improvement--or only when it's a safety improvement? And is this Prius thing a safety improvement or a drivability improvement? Sounds like safety to me. But then again, so is a window switch. You see what I mean?


        • 4 Years Ago
        The only way a window switch can be a safety issue is if you live in a hostile environment and drive an armored car (bullet-proof windows)... otherwise, driving with the windows down FTW!
      • 4 Years Ago
      That's hubris with a capital "H".
      • 4 Years Ago
      ...yet at the same time, Toyota says it expects to save some 1.59 trillion yen ($17.5 billion) via "emergency profit measures"...

      Either they plan on selling major assets or they're selling their souls to the devil.
      • 4 Years Ago
      Someone mentioned the Stages of Grief before. Well they must be out of order, because this is definitely the denial stage.
        • 4 Years Ago
        The stages of grief actually HAVE NO ORDER! That's just a dumb TV/move thing like when cops tell people to "enhance" the image and magically turn some blur into a crisp picture of the suspect. *sigh*
      • 4 Years Ago
      Lunch time for Hyundai!
      • 4 Years Ago
      TOYOTA: Saving the Earth, by taking care of the real "problem"...
      • 4 Years Ago
      This is more about perception than reality. Toyota isn't going to meet those sales goals. Not when the American public doesn't trust them.
        • 4 Years Ago
        $140 million. Can you tell me if i'm going to win the lottery tonight?
        • 4 Years Ago
        @mact

        That is easy, you wont win : )
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