Toyota posts big Q1 profit

If you counted them out – the joke’s on you.  Toyota Motor Corp., despite their rocky existence since early last September when the problems with unintended acceleration hit the ground running, Toyota seems to have finally moved past their nightmare. The First Quarter profits are in, and they are big – about $1.1 billion big.  In essence, this can only be explained by one fact – Toyota is selling cars.

In fact, in the three months leading up to June, Toyota sold between 1.8 and 1.9 million cars.  Even for a car junkie, that stat is unbelievable.  I think Toyota itself was even a bit surprised since this number is 30% higher than Toyota’s numbers last year at this time.

However, the big profits still don’t completely offset the loss Toyota endured last year at this time.  Therefore, at this point in time Toyota has left its annual profit forecast unchanged.  In part, this is believed to be a cause from uncertainty in the still shaky European and U.S. economies.

Toyota does, however, see emerging power markets in areas such as the Middle East, where resources like oil are spreading wealth.  In addition, there has been a recent surge in the purchases of Pruis vehicles in Japan.  However, the desire for the king eco-friendly car may be an explanation of the Japanese government’s subsidies for purchasing eco-friendly cars, which ends this September.

North America is also seeing an increase in Toyota vehicles sold.  Locally, Karl Malone Toyota has noticed an increase in the number of Salt Lake City Toyota Rav4 drivers.  Likely in part due to the unprecedented incentives Toyota offered as a reaction to the massive recalls, drivers switched to Toyotas all over the country.   However, Salt Lake City and Toyota Rav4 vehicles go together like salt and pepper.  The vehicle is a perfect size and offers great stability for off-roading fun and harsh winter climates.

And local dealers like Karl Malone Toyota are confident that they will find this switch to be permanent.  A good majority now of Salt Lake City used cars sold are Toyotas.  The incentive programs may have first lured customers who needed a reason to try a Toyota, but now they will no doubt be kept by the quality these vehicles offer.  After all, to be the world’s biggest automaker – you must be doing something right.