NOVEMBER 1, 2004
Toyota is not short of cash
The Toyota Motor Corporation has reported a 11.4% increase in its earnings in the six months up to September 30. The company made profits of $5.5bn on sales of $85bn (an increase is sales of nearly 10%). The company reported that sales are growing in North America, Europe and Japan and this was quite enough to offset the effects of unfavourable exchange rates, which has damaged the results of some other Japanese companies. In the six month period Toyota sold 3.56m vehicles around the world, up 12% from the 2003 figures. Toyota also increased car sales in Africa and other Asian markets and says that it expects to have sold 7.22m cars by the end of its fiscal year in March next year.
In the circumstances an investment of $500m in the Formula 1 project (give or take the odd million) is not a huge risk.
The results will strike fear into the hearts of some of the world's less efficient car makers, notably the big US combines Ford and GM, which are struggling to hold on to their market share around the world.
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