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Toyota Relies Heavily on US Sales


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The Toyota Motor Corporation has raised its targeted sales in the US market with the beginning of the third quarter upon the release of its global profits. The auto manufacturer which is one of the best selling brands worldwide has showed a slowing of profits in other countries which has forced the company to become more heavily reliant on its sales in the US. Toyota had earlier in the year, set its sights on Thailand as an emerging market as well as other developing countries to help surge profits, but has so far lacked any significant gains.

The World’s Best Selling Brandtoyota

Toyota for years has been the best selling brand globally according to industry analysts. Currently the strongest sales in used and refurbished Toyota Camry’s are the best selling overseas. The company has had strong sales both in the US and worldwide which could be for the first time be taken over by the company’s biggest competitor in global sales, Volkswagen. Many of the heavy weight car manufacturers have been looking at investing in new plants in China in order to maximize profits. Volkswagen has made it perfectly clear that the manufacturing will continue in all of their existing plants until the capacities are exhausted before the company will invest in newer plants. Currently Toyota hasn’t made much mention of newer investments to be made in the building of new plants any earlier than 2016. The company has not released any information other than the possibility of a new plant and hasn’t even picked a location. Between the two major brands produced by Toyota, annually 9.8 million vehicles are currently produced for Toyota and Lexus globally. While in a perfect world Toyota would entertain plant expansions, company spokesmen have stated that the company is currently comfortably producing vehicles at a rate that matched their current demands. Should demands increase, Toyota’s plants will be able to sustain before a new plant is needed to be built.

On Tuesday Toyota posted their second quarter profits that was between April and June. The company posted a revenue of 692.7 billion yen which in US dollars is worth about 6.76 billion dollars. The company is up 4.4 percent this year when compared to the sales numbers of this time last year. Toyota has attributed this jump in revenue to their ability to cut costs, push sales in the US higher than in recent years, and the fact that the US dollar is at a greater value than the Yen which is boosting monetary value.

Sights Set on the UStoyota 1

The Japanese auto maker has stated that they are looking to move an additional 50,000 vehicles out of their Japan based plants and reach about 2.3 million vehicles in the US for Toyota’s 2014 calendar year. The company has in the last year trimmed about 110,000 vehicles off of its annual yearly global delivery. In order to compensate for this overall trimming of vehicles to be delivered worldwide the company has gone and raised its targeted sales goals in the US where the company believes it has more of a chance in gaining more profit. These numbers the company has set for its US based business allows for the dealerships to achieve this overall number through March of next year. Industry analysts don’t see this refocusing of assets and redirection by Toyota as one that has been enacted by loss of business in Asia. In fact many industry experts agree that in Asia the competition for auto makers like Toyota, Honda, and Nissan are continually intensifying. Toyota hasn’t lost business in Asia and continues to provide for that market, but as many enthusiasts in the industry know new car sales tend to do better in the US and used sales better in the European and Asian markets. The stock value for Toyota’s shares have to date fallen about 6 percent for the year and only about 1 percent since the announcement of their second quarter earnings. However, the company remains one of the strongest auto manufacturers in the world and has currently been maintaining its place as the top selling global brand.

The US is currently the best chance for the continuous rise in profitable revenue. The company’s redirection and refocusing in on the US car sales market also has taken into consideration the ever slow but gradual rise in the US domestic economy. The company may be relying more heavily on the US sales market, but the goals of the company are not farfetched. The bulk of Toyota’s profits are being achieved within the US market with many of Toyota’s customers being repeat customers. Much of the Toyota’s on the road today were first bought new over twenty years ago and the quality hasn’t changed since then. The growth that Toyota is seeking in the US is easily achieved with a record like that!

 

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