The past few months have been raining ‘recalls’, out of which, Toyota had the largest ever global recall. What most of the common men must have thought is that Toyota is going to have a time of its life with a huge loss ever recorded owing to the massive recall. The firm had announced the recall due to a faulty gas pedal. However, in reality the story has proved to be something totally different. Toyota reported a profit of about $1.2 billion from January to March, this year which was the crucial time of its recall.
What amuses us most is the fact that the firm has managed the profit in spite of the expenditures incurred due to the recall which amounted to a little more than a billion dollars (100 billion Yen). To add to the pressure, Toyota also reported a fall in profits as compared to last year owing to the unprecedented spate of incentives to keep sales rolling.
The firm’s head Akio Toyoda, mentioned that they would continue to boost profits by offering high quality, reasonably priced vehicles. However, we hope the high quality part does not repeat with another world wide recall. The firm may not be this lucky next time.