Toyota Sees Operating Profit Of $12 Billion In 2-3 Years
TOKYO - Toyota Motor Corp will forecast a near doubling of operating profit to a minimum of 1 trillion yen ($12.1 billion) in two to three years as part of its business roadmap to be unveiled on Wednesday, a source said.
Toyota will also seek to boost its operating profit margin to at least 5 percent in the same time frame, up from an estimated 2.9 percent in the current financial year ending this month, the source said, confirming figures reported earlier by the Nikkei newspaper, reported Automotive News.
The figures are not strict financial targets but an estimate of what the company should be capable of as it reduces costs and strengthens its operations, even at a dollar rate of 85 yen, the source said, declining to be identified because the information is not public yet.
The operating profit forecast is roughly in line with market expectations, with 15 analysts putting the profit at 1.14 trillion yen for the year ending March 31, 2013, according to poll by Thomson Reuters I/B/E/S.
President Akio Toyoda is due to announce a new "global vision" for the next 10 years for the world's biggest automaker at 4 p.m. local time (2 a.m. EST). Among other measures likely to be outlined is the reduction of Toyota's directors to 11 from 27.
Among the board members shedding their seats will be Yoshimi Inaba, head of Toyota's North American unit, a person familiar with the plan said this week. Inaba, 65, is president and COO of Toyota Motor North America Inc. and chairman of Toyota Motor Sales U.S.A. Inc.
Since taking up his post in June 2009 in the aftermath of the global financial crisis, Toyoda, grandson of the company's founder, has often spoken of the need to go back to the basics of "making better cars and contributing to society."
That vision became a directive as a recall of millions of cars, mainly for complaints of unintended acceleration, damaged its once-impeccable quality image, especially in the United States. Toyota has recalled nearly 20 million vehicles worldwide since late 2009.
Last month, the U.S. government said Toyota's electronics were not the cause of vehicles found to have accelerated unintentionally.
Toyota's Global Vision for 2020 is expected to map out where Toyoda wants to take the company without being caught up with short-term financial goals. Toyoda outlined some of those initiatives in 2009, including developing cars suited to each market rather than selling the same vehicle around the world.
Toyota has forecast a group operating profit of 550 billion yen in the current business year ending this month, based on the assumed dollar rate of 86 yen.
More Industry

Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →