Toyota Motor, the world's second-largest and Japan's top carmaker, said today that it posted record annual sales and profits, in marked contrast to its faltering US peers, General Motors and Ford.
It said its year to March net profit rose 0.8% to 1.17 trillion yen ($11.15 billion), with operating profit up 0.3% to 1.67 trillion yen on sales of 18.55 trillion yen, up 7.3%.
Improved marketing added 230 billion yen to operating profit and cost reductions another 160 billion yen, which together offset the negative impact of exchange rates and higher research and development and other costs.
In the year to March 2005, Toyota said its global sales hit a record 7.41 million vehicles, up 10.3%, and projected it would rise further to 7.85 million.
In Japan, sales rose 3.4% to 2.38 million vehicles 'thanks to the introduction of new models in tune with customer needs and the sales efforts of our national network,' Toyota said.
Sales in the key North American market rose 8% to 2.27 million vehicles, led by the Scion series and the environmentally friendly Prius gasoline-electric hybrid car. In Europe, sales rose 9% to 979,000, thanks to continued strong demand for local production models such as the Avensis, Corolla and Yaris.
Sales in other regions including Asia, the Middle East and Oceania climbed 25.5% to 1.78 million vehicles.
The fortunes of Toyota stand in stark contrast to US car giants General Motors and Ford to the point where many expect the Japanese company to dislodge GM from the world number one slot, having already overtaken Ford for second, sooner rather than later.
International credit agency Standard and Poor's cut GM and Ford ratings to junk bond status only last week, noting that both are suffering from mounting competition in the key North American market and have been badly hit by slowing sales of their ageing sports-utility vehicle (SUV) product lines.
GM last month reported a massive first quarter net loss of $1.1 billion and warned of a deteriorating outlook to be followed by Ford which issued a similar downbeat message as its earnings tumbled some 38%.
