Toyota in profit but in for a bumpy ride
TOYOTA’S surprise quarterly profit and halving of its annual loss forecast failed to convince investors the world’s biggest carmaker is back on track, as government subsidies peter out and a strong yen takes its toll.
Major Japanese automakers have raised their forecasts for the year to March 2010 as they squeeze out savings and government incentives prop demand.
But with stimulus programmes beginning to run out, Toyota is looking to cut spending further. It is exiting Formula One racing to put that annual budget of around $300m (£181m) to better use.
Toyota, whose quarterly net profit was 21.8bn yen (£145m) expects an 350bn yen operating loss this year, the biggest among its domestic peers.