Toyota’s profits, marred by a certification scandal

Toyota, Japan’s largest automobile manufacturerreduced its profits in the July-September period to less than half of those obtained in the same period of the previous year. The manufacturer of the Camry sedan and Lexus luxury models revealed that the cessation of production following a certification scandal and the withdrawal of models had reduced sales. Toyota apologized and suspended production of a series of models after acknowledging widespread fraudulent testing, including the use of inadequate or outdated crash test data, as well as incorrect airbag inflation testing.

Fraudulent evidence was also discovered at the group’s manufacturers Toyota, Hino Motors and Daihatsu Motor Company. Quarterly profits through September amounted to 573.7 billion yen (3.46 billion euros), down from almost 1.28 trillion yen (7.72 billion euros) in the same quarter of the previous year. Quarterly sales revenue rose slightly to 11.44 trillion yen (€69 billion) from 11.43 trillion. Last fiscal year, Toyota sold more than 11 million vehicles worldwide. Now, Toyota expects to sell 10.85 million vehicles this fiscal year through March. In the last quarter, Toyota sold 2.3 million vehicles worldwide, up from 2.4 million in 2023.

More investment in human resources

Those responsible for toyota have promised to improve by investing more in “human resources and growth areas,” while pursuing what the automaker calls “multitracks,” meaning will boost hybrids and fuel cellsas well as electric vehicles, depending on market tastes. This investment in human resources will extend to its subsidiaries and supply chains. Vehicle production will recover in the second half of the year, according to Toyota.

Production in Japan decreased in its first half due to “the need to address certification issues and to take time to reexamine our manufacturing environment and culture,” the company told reporters. Chief Financial Officer, Yoichi Miyazaki. Toyota production at its US plant in Indiana was temporarily halted due to the calls for reviewbut it has increased again since last month, he said. Toyota maintained its profit forecast for the full fiscal year at 3.57 trillion yen (21.1 billion euros), down from 4.94 trillion the previous year.