Toyota trying to move beyond safety concern

• Source: CNTV.CN
• [16:19 February 10 2011]
• Comments

A US government probe has cleared Toyota's electronics of causing unintended acceleration. It's a big victory for the company, as it seeks to recover from the hit it took over runaway vehicle accidents.

Rival Toyota shares were the biggest gainers Wednesday though, touching 9-month highs. Investor cheered after the top carmaker's electronics was cleared by US Transport Secretary Ray Lahood of fault.

Ray Lahood, US Transportation Secretary said "So let's be clear. The jury is back. The verdict is in. There is no electronic-based cause for unintended high-speed acceleration in Toyotas. Period."

The vindication came less than 12 hours after Toyota reported a less-than-expected drop in Q3 profit and raised its full-year profit guidance by a staggering 45 percent.

Takahiko Ijichi, Toyota Senior Managing Director said "We have seen increases in the number of car orders from areas such as Japan, Asia and Russia. Additionally, our efforts in dealing with the Yen have paid off, and our efforts in reducing overhead have been more successful than our original goals. As such, we have revised up by 170 billion Yen our operating income to 550 billion yen."

With about 44 percent of its cars still made in Japan, compared to under 30 percent for Honda and Nissan, Toyota will continue to face pressure from a firm yen. But with the electronics issue now out of the way, Toyota will be hoping US consumers who held off buying their cars will return, and restore its market share.Toyota's US sales slipped last year, despite 11 percent growth in total auto sales.