According to Didier Leroy, who leads Toyota Europe, the division is now back in the white book thanks to increased hybrid models sales and the fact that across the region’s operations were taken aggressive measures to lower costs.
Leroy added that while between 2008 and 2011 the company had no solution and lost money on the back of the Europe’s slump in demand from the recent recession, the company was also slated to continue the downfall for the next four years – through 2015 – as it battled the huge 2010 worldwide recall and then the 2011 Japanese earthquake and tsunami.
“Our first focus was to return to profitability as soon as possible,” he contends. “One of the key success factors was our focus on hybrids. Today nearly 20 percent of our sales are hybrids and 70 percent of those are made in Europe.”
The Japanese automaker also continuously reworked its factory operations, cutting excess production lines across many plants and focusing back on the centralization of model production in the region. With all the cost cutting measures and the rising hybrid sales, the European division went back to being profitable since 2012 and in the last financial year the profit grew 75%, while revenue went up 5%.
Via Automotive News Europe