Europe: Toyota’s chief handing over healthy division image

Toyota’s European business leader, chief executive officer Didier Leroy, is getting ready to hand over the position as he prepares this summer to assume new, global responsibilities – becoming the Japanese automaker’s first non-national executive vice president.

The European unit of the carmaker, unlike others belonging to the US automakers General Motors and Ford, for example, is in a healthy position today – with Leroy managing a turnaround since July 2010 when the unit had incurred years of losses. He even managed the swing around one year ahead of the proposed target, securing the unit’s first profit in 2012-2013. Besides that, the prospects are even better now, with the Toyota Europe division announcing it had an operating profit of 66.4 billion yen (519 million euros) for the first nine months of the 2015-2015 fiscal year – jumping 54 percent over the same period for the year ago period. “We’ve had quite a big improvement in terms of return on sales and our profitability,” commented Leroy on the sidelines of the recently closed Geneva International Motor Show in Switzerland. That compares to the rivaling divisions of GM and Ford, which had each losses of more than one billion dollars in the region last year.

The manager’s credo revolved around “sustainable growth” – having Toyota chase market share only after profit was secured, and the executive forecasts the unit will have another positive year for the 2015-2016 fiscal period, even asking the Russian managers to find a way to avoid losses in a market that is predicted to fall 28 percent.

Via Automotive News Europe