Toyota Motor Corporation (TMC) is estimating its global recall of more than eight million vehicles has cost it around JPY170bn (US$1.83bn) to JPY180bn.
The Japanese automaker suffered a series of high-profile recalls following concerns with its accelerator systems that also saw it slapped with a US$16.4m fine – the largest ever for a carmaker in the US.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
TMC announced significantly improved results today (11 May) that saw it turn around its huge loss of JPY461bn for fiscal year 08/09 to an operating profit of JPY147.5bn to 31 March 2010.
“The impact of the worldwide recall was JPY170bn to JPY180bn,” a TMC spokeswoman told just-auto from Tokyo, although she was unable to elaborate on what the coming fiscal year’s effect might be.
However, she cited the massive effect of “our cost reduction effort” that had yielded JPY520bn, including a JPY470bn fall in fixed costs.
Addressing the recall issue, the TMC spokeswoman insisted build quality had been addressed as well as internal staff communication concerning quality improvement.
“We are confident but we are making every effort to what we can do to improve the quality of the cars of course,” she said.
“We are also making very tight communications inside the company and also outside to customers. We realised again the importance of the customer from the recall issue.
TMC forecasts consolidated net revenue of JPY19.2tn, operating income of JPY280bn and net income of JPY310bn for fiscal year ending March 2011.
