Aside from holding onto its global sales crown for another year, Toyota is also doing well at the bank thanks to a weaker yen.
The New York Times reports in Q3 2014, the automaker earned a net profit of ¥1.73 trillion ($14.7 billion USD), besting its earnings in Q3 2013 by 13.2 percent. In turn, the final net profit for FY 2014 has been raised from a projected ¥2 trillion ($16.8 billion) to ¥2.13 trillion ($17.9 billion).
Part of the cause for celebration is due to a weaker yen, the result of Japan’s central bank doing all it can to fight deflation and stimulate the economy to stave off another lost decade. Toyota’s global profits — especially in the United States, where the yen is the cheapest it’s ever been since the 1970s — outpace those in the local market once the other currencies are converted into yen.
However, the celebration won’t last forever. Toyota’s home market is shrinking, and it’s not doing so well in China compared to other automakers like Volkswagen, who will likely take the production crown from the automaker down the road. It also is among those affected by Takata’s airbag recall crisis, though not as greatly as others due to having less of the supplier’s products in its vehicles and larger size.
The post Toyota’s FY 2014 Profits Rise As Yen Weakens appeared first on The Truth About Cars.
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