Boston, MA 02/13/2014 (wallstreetpr) – Toyota Motor Corp (ADR) (NYSE:TM) has indicated that it sold more than 10 million cars all over the world in 2013. By doing this, the company has become the most profitable automaker in the world. After evaluating the company’s performance for a 9-month period that ended in December 31, 2013 it became evident that Toyota Motor Corp made $15 billion in profits. The company has indicated that when it announces it 2013 fiscal year financial results, it will have posted profits of more than $20 billion, and that by doing this, it will be the world’s most profitable carmaker.
Toyota Motor Corp (ADR) (NYSE:TM) has cited many reasons for its emergence as the most profitable automaker in the world. First, it says that it has been one of the biggest beneficiaries of a strong Japanese Yen. The company also says that although Japan is generally a weak market for carmakers, it oversaw a period of sustained growth in sales over the last one year. Furthermore, Toyota Motor Corp is not doing so badly in the US, where it currently trails Ford Motor Co, but only by a very small margin. If the company continues with the current levels of performance, then it may overtake Ford and lie second only to General Motors in the US market.
Toyota Motor Corp (ADR) (NYSE:TM) has also seen a not-so-pleasant performance in Europe. Generally, Europe has not filled many carmakers with the best of news in the recent past. Car sales in Europe are not at their best levels. However, TM managed to do much better compared to its peers in Europe. If Toyota manages to increase its market share in China, it will have prepared a solid foundation upon which it can look forward to better results going forward. Currently, Toyota suffers in China due to poor political relationship between Japan and China. It is commendable that Toyota has not used the political tension between the two nations to get out of China.
No other automaker in the world has produced more than 10 million cars in a single year. Toyota became the first carmaker to achieve such a feat in 2013. In terms of profitability, Toyota’s $15 billion compares favorably with the $4.9 billion posted by General Motors. Volkswagen is expected to post $15 billion in profits when it releases its financial results for the 2013 fiscal year. However, Volkswagen will see its profits affected by huge taxes that it must pay, thereby relegating it to the third position or in between Toyota and General Motors. Hyundai and Ford are the other two major automakers that fall within the list of the 5 most profitable.
In summary, Toyota Motor Corp (ADR) (NYSE:TM) has now emerged as the most profitable automaker globally. This makes it worthwhile to investors across the board. As the global economy picks up in the world, and the middle class keep increasing, thus boosting the demand for cars around the world, Toyota is in a prime position to do better in 2014 than it did in 2013.
