Toyota, the Japanese automobile manufacturer, is all set to regain its position as the largest auto maker of the world. The sales of Toyota vehicles have largely increased this year and the company is expected to sell around 9.7 million vehicles in 2012, which would be more than 1 million higher than the total sales figure of General Motors, the second place holder. The 9.7 million sales figure would even set records for the annual auto sales by any company. Toyota's earning in the third quarter has tripled to $3.2 billion, with almost 20 per cent growth in sales as compared to the same period in 2011.
The company sold more than 1.7 million vehicles alone in the US in the 10 month period up to October this year. The sales figure achieved by the Japanese auto maker in the US in the first 10 months of 2012 is around 30 per cent higher than the same period in 2011. This growth figure is more than twice the growth rate of the automotive industry.
Toyota has brought 11 new or completely redesigned models in the United States in the last 12 months, which apart from new station wagon include commuter versions of its popular Prius hybrids, among others. The company launched its new-generation RAV4 sport utility vehicle. The outgoing model of the RAV4 is facing stiff competition from Ford Motor Co.'s Escape and Honda Motor Co.'s CR-V.
The Japanese automotive giant has also expanded its factories in the US with the opening of a Corolla plant in Mississippi and expanding pick-up truck manufacturing facility in Texas. The company now accounts for 14.4 per cent of the U.S auto market, which in the first 10 months of 2011 stood at 12.6 per cent. Toyota brand is the biggest in retail sector, which, however, excludes rental and fleet sales.
Toyota is increasing its factories in the US in order to manufacture vehicles in the country itself and maximise the profit which otherwise is reduced due to Japanese yen's strong exchange rate with the US dollar. The company has invested $1.4 billion into U.S factories and equipment in the previous one year. This has led to the creation of 2,700 new jobs which is in addition to 1,300 positions created in the country the previous year.
The companies expansion plans comes after it shut down the New United Motor Manufacturing Inc. plant in Fermont, California, which had left 5,000 workers unemployed in 2010. The company shut the manufacturing plant after GM pulled out of the two company’s joint venture there.
