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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.

Toyota won't face recall for Corolla unintended acceleration

Toyota will not face a recall or further investigation into an alleged unintended acceleration problem in the 2006-2010 Corolla. Following months of analysis, the National Highway Traffic Safety Administration was unable to find a mechanical defect to cause the issue. If there had been a safety campaign to fix the vehicles, it could have affected 1.69 million cars, according to NHTSA. The incident that prompted the investigation occurred in June 2014 when a driver was pulling into a parking spot. The 2010 Corolla allegedly lurched forward under braking and hit an unoccupied Jeep, according to The Detroit News. No one was injured. The owners had the vehicle examined by a Toyota dealer, and it found no problems. They then filed a petition with NHTSA to open a deeper investigation. NHTSA took the family's Corolla and tested it for over 2,000 miles, according to The News. The agency couldn't replicate the problem and found the brakes were capable of keeping the vehicle from moving at full throttle. In their petition, the owners also submitted 143 other unique complaints of this issue in the Corolla, but the Feds found that most of these incidents were due to driver error where the gas or both pedals were accidentally pressed. After taking all of this into account, "NHTSA has concluded that further investigation of the issues raised by the petition is not warranted," the agency wrote in its report. You can read the entire, 23-page explanation for yourself in PDF format, here. INVESTIGATION Subject : Low-speed surging Date Investigation Opened: SEP 19, 2014 Date Investigation Closed: APR 29, 2015 NHTSA Action Number: DP14003 Component(s): VEHICLE SPEED CONTROL All Products Associated with this Investigation Vehicle Make Model Model Year(s) TOYOTA COROLLA 2006-2010 Details Manufacturer: Toyota Motor Corporation SUMMARY: The Agency received a petition on September 11, 2014 requesting an investigation into, "low-speed surging in the 2006-2010 Toyota Corolla [vehicles] with ETCS-i, in which the brakes fail to stop the vehicle in time to prevent a crash." NHTSA conducted a technical review of the material cited and provided by the petitioner, material Toyota submitted in response to a NHTSA formal request, interviews with complainants and manufacturer representatives, as well as the results of testing of the complaint vehicle.

Senator pushes for up to life sentence for auto execs found to delay recalls

Democratic Senator Claire McCaskill (shown above) has had it with automotive execs stalling when it comes to recalls. The Missiourian has proposed a new bill, the Motor Vehicle and Highway Safety Enhancement Act, which aims to improve the automotive safety following the high-profile fiascos involving General Motors and Toyota. Aside from a doubling of the budget for the National Highway Traffic Safety Administration over the next six years and the removal of the $35-million limit for fining automakers, the plan includes a provision that would punish auto executives if it's discovered they knowingly delayed recalls. How will it punish them, you ask? Oh, you know, just life in prison. The bill "gives federal prosecutors greater discretion to bring criminal prosecutions for auto safety violations and increases the possible penalties, including up to life in prison for violations that result in death," McCaskill's office told The Detroit News. If a delayed recall led to serious injuries, meanwhile, execs could still face a 15-year stint behind bars. As for that change in the fine structure for automakers, the removal of the limit is complemented by a hefty increase in the per-vehicle fine, from $5,000 to $25,000. With this change, GM could have been on the hook for $55 billion (with a "b") in fines for its bumbling of the ignition switch recall, rather than just $35 million. The News says, though, that NHTSA has "wide discretion" in handing out the fines. Considering a $55-billion fine is enough to sink any automaker, it is unlikely that such a monumental sum would be handed out. Still, the potential threat of such a death sentence should be enough for any automaker to sit up and take notice. "With millions of Americans behind the wheel every day, and more than 33,000 killed on our roads each year, we've got to do more to keep our cars and the roads we drive them on safe," McCaskill said, according to The News. "Painful recent examples at Toyota and GM have shown us we also must make it easier to hold accountable those who jeopardize consumers' safety. For too long, auto safety resources have remained virtually stagnant while cars and the safety challenges they present have become more complex." What do you think? Do you agree with McCaskill's proposed bill? Should the punishments for automakers and execs be more or less harsh? Have your say in Comments. News Source: The Detroit NewsImage Credit: J.