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Toyota to pay $11 million after trial for fatal Camry crash

Years after Toyota's unintended acceleration fiasco, the company is still making headlines for cars with sticky gas pedals. A federal jury in Minnesota decided yesterday that Toyota should pay $11 million for its role in the crash of a 1996 Camry that resulted in three deaths and sent a man to jail. A stuck pedal caused the Camry of Koua Fong Lee to accelerate uncontrollably and impact an Oldsmobile Cutlass Ciera, killing its driver and his nine-year-old son, and paralyzing a six-year-old girl, who later died of her injuries. Two other passengers in the Olds were seriously injured. Lee spent nearly three years in prison on a charge of vehicular homicide, until the unintended acceleration recall erupted. He filed a motion for a new trial and won, and then joined the suit against Toyota filed by the victims and their families of the 2006 crash that left him imprisoned. The jury found Toyota 60 percent responsible for the accident, with the remaining 40 percent of blame going to Lee. Toyota has denied that the 1996 Camry, which wasn't included in the company's sweeping accelerator pedal recalls, was at fault. Toyota released a statement saying the company respects the jury's decision but believes the evidence clearly showed the vehicle wasn't the accident's cause. The company said it will study the record and consider its legal options. Under Minnesota law, the way the jury allocated fault means Toyota is responsible for paying all damages, minus 40 percent of the amount awarded to Lee, said Lee's attorney, Bob Hilliard. That brings Toyota's total liability to $10.94 million. Lee will receive $750,000 of that total. During the trial, Hilliard, told jurors there was a defect in the car's design. He said the Camry's auto-drive assembly could stick, and when tapped or pushed while stuck, it could stick again at a higher speed. He also accused Toyota of never conducting reliability tests on nylon resin pulleys that could be damaged under heat and cause the throttle to stick. "This is what makes the car go. This is what turns it into a torpedo, a missile, a deadly weapon," Hilliard said during his closing argument. Toyota said there was no defect in the design of the 1996 Camry. The company's attorney, David Graves, suggested that Lee was an inexperienced driver and mistook the gas pedal for the brake. Toyota also noted that Lee's car was never subject to the recalls of later-model Toyotas.

Toyota struggling in Latin American market, attempting recovery

With uncertainty in the US and Chinese markets, automakers are scrambling to rev up their efforts in what were traditionally secondary markets. Take Toyota's efforts in Latin America. A recent story from The Wall Street Journal highlights the Japanese brand's push in the southern hemisphere, particularly in Brazil, where it has expanded its operations and installed new executives with a greater range of powers, all in a bid to grab a bigger slice of the ever-growing South American pie.
South America is dominated by General Motors, Fiat and Volkswagen, which maintain a combined 60 percent of the market share - Toyota holds a mere 4.5 percent. The WSJ spoke with Steve St. Angelo, Toyota's boss in Latin America, who said, "We are playing catch up, but we're catching up fast. We now have the resources to give the region the attention it really needs and deserves."
That attention includes an all-new, locally produced small car called the Etios. As bewildering as it seems, Toyota wasn't competing in the low-cost economy car market in South America. With the Etios, which arrived in September of 2012, its sales in the first seven months of 2013 are up 75 percent.

Toyota projecting record profits, thanks in part to weak yen

Toyota retained its global sales crown in 2014 by selling 10.23 million cars in the calendar year. As the positive number might suggest, the Japanese automaker is doing extremely well financially, too. Although, some tougher times might be on the horizon. Toyota recently released its financial figures for the three fiscal quarters running from April 1 through the end of December 2014. Net profit jumped an impressive 13.2 percent to 1.727 trillion yen ($14.7 billion) for that period. It could be the Japanese automaker's most profitable time ever when the fiscal year ends in March, if things keep going this way, according to The New York Times. Toyota's own profit forecast for the 12-month period is also up by 130 billion yen ($1.1 billion) to 2.13 trillion yen ($18.1 billion). One key to the company's success is the low value of the Japanese yen, because it allows Toyota to make more money on each vehicle the company sells abroad. The currency is now worth relatively less than any time since the early '70s, according to The New York Times. Despite the rosy financial numbers, actual sales have started to fall, albeit a very slight amount. Through the three fiscal quarters, the company sold 6.73 million cars, a drop of just 45,365 vehicles. Toyota also reduced its forecast for the fiscal year to 9 million units, rather than the original estimate of 9.05 million. According to The New York Times, the shrinking Japanese auto market and difficulty in China might mean losing the global sales lead next year. For the US, sales jumped 145,411 units from April through December to a total 2.1 million vehicles. Operating income reached $4.27 billion, nearly 50 percent more than last year, according to The New York Times. Toyota Motor Corporation (TMC) Announces April – December 2014 Financial Results February 04, 2015 Toyota's global net income jumped 13.2 percent during the nine-month period (April 1– December 31, 2014) of the 2015 fiscal year. Global Financial Highlights: Global sales decreased by 45,365 vehicles to 6.73 million, with strong sales in North America and gains in Europe, offsetting decreases in Japan and other regions.