Toyota expects sales and profit to reach the highest level in the past six years, thanks to the weakening yen which gives advantage over GM and VW.
The world’s biggest automaker sees net income increase 42% to 1.37 trillion yen ($14 billion) during the financial year ending March 2014, relying on the weakening yen. Thanks to Prime Minister Shinzo Abe’s strategy of reversing the appreciation of the yen, $97 billion were added to the nation’s market value.
“With the weaker yen, this should be a good year for Toyota,” said Edwin Merner, president of Atlantis Investment Research Corp. In Japan, “the mood is good, it’s getting better, and you can expect for people to buy more,” he said.
The weaker yen made the net income during the first quarter double to 314 billion yen, an increase of 22% than the analysts’ estimates. During the same period GM’s profit dropped 11% to $1.18 billion and VW fell 35% to 2.03 billion euro. In the Q1 Japan’s profit was twice that from Europe, North America and the rest of Asia combined.
Last month, Toyota’s sales in the States dropped for the first time in the past 18 month, with the Prius down 21% and the Camry loosing for the second month the place as the best-selling car in the US since 2022.