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Unintended acceleration settlement hits Toyota's Q4 bottom line

Depending on how you want to look at things, the US Attorney's Office $1.2-billion dollar settlement with Toyota in March over its unintended acceleration recall was either a big blow to the company or completely inconsequential. From January to March, net income fell five percent to 297 billion yen ($2.89 billion), compared to 313.9 billion yen ($3.05 billion) a year ago. However, the automaker still posted record full-year profits worldwide.
Operating profit also fell in the US by 9 percent to $498.1 million for the quarter, but sales were up by 6 percent to 581,261 vehicles. According to Automotive News, global revenue was still up from January to March by about 13 percent and vehicle sales were up 6 percent to 2.58 million units.
However, the payment to the feds did little to hold the company back last year. For the fiscal year ending March 31, 2014, Toyota had net income of 1.82 trillion yen ($17.7 billion), compared to 962.1 billion yen ($9.5 billion) in the last fiscal year. Total vehicle sales were also up.

GM might lose 90-year U.S. sales crown over chip shortage

Automotive News editor Nick Bunkley tweeted on October 1 that according to AutoNews data, General Motors "has been the largest seller of vehicles in the U.S. every year since passing Ford in 1931." With automakers having turned in light car and truck sales data for the first three quarters of 2021, GM's 90-year-run might not reach 91. According to AN figures, Toyota was 80,401 vehicles ahead when the October workday started. Worse, GM is so far behind its historic pace that it might only sell enough light vehicles in the U.S. to match its numbers from 1958.  Meanwhile, the New York Times put a few more salient numbers to the pain GM and Toyota are enduring alongside the the rest of the industry. GM sold 33% fewer cars in Q3 2021 than it did in Q3 2019 during the dark days of the pandemic, 446,997 units this year as opposed to 665,192 last year. GM's Q3 2020 was only down 13% on Q3 2019. Over at Toyota, the bottom line showed a 1% gain in Q3 2021 compared to 2020, with 566,005 units moved off dealer lots. The finer numbers show two steps forward and one step back, though; Toyota's September sales were down 22% compared to last year.  GM remains optimistic about what's ahead, GM's president of North American operations telling the NYT, "We look forward to a more stable operating environment through the fall." We'd like to see that happen, but we don't know how it happens. The chip shortage said to have been the inciting incident for the current woes isn't over, and not only can no one agree when it will be over, the automakers, chip producers, and U.S. government still can't get on the same page about who needs what and when. Looking away from that for a second shows articles about "No End In Sight" for supply chain disruptions in early September, before China had to start working through power supply constraints, global supply chain workers started warning of a "system collapse," and roughly 500,000 containers sat waiting to be unloaded at Southern California ports — a record number seemingly broken every week. And back to chips, we're told just a few days ago the chip shortage is "worse than we thought."   For now, the NYT wrote that GM dealer inventory is down 40% from June to roughly 129,000 vehicles, and down 84% from the days when dealers would cumulatively keep about 800,000 light vehicles in stock. However, GM just announced it would have almost all of its U.S. facilities back online next week, although some would run at partial capacity.

Toyota recalls 112,500 models for steering, transmission issues

Toyota has announced a voluntary recall of a variety of vehicles built between model years 2012 and 2015. Roughly 110,000 of the 112,500 vehicles being recalled consist of the gas and hybrid variants of the 2015 Camry and Highlander, as well as the 2014 and 2015 RAV4. The problem, this time around, is down to a circuit board that may have been damaged during manufacturing of the electric power steering system. According to Toyota, the bad circuit board can lead to a loss of power steering. Owners would still have manual steering control, although they'll have a warning lamp glaring at them from the instrument cluster the entire time. As for the remaining 2,500 vehicles, they're limited to the RAV4 EV, built between 2012 and 2014. A software issue in the electric vehicle traction motor assembly could cause the EV to shift into neutral. As with the issue affecting the Camry, Highlander and gas-powered RAV4, vehicles with this problem will produce a warning lamp in the instrument cluster, as well as a "Check EV" message. Toyota will be notifying owners of the affected vehicles via snail mail, and asking them to report in for free repairs at their local dealership. Check out the whole press release on the issue, available below. TORRANCE, Calif., March 11, 2015 – Toyota Motor Sales, U.S.A., Inc., today announced it will conduct safety recalls of approximately 2,500 Model Year 2012 – 2014 RAV4 EV vehicles; and approximately 110,000 Model Year 2015 Camry, Camry Hybrid, Highlander, Highlander Hybrid, and 2014-2015 Model Year RAV4 vehicles. In the involved RAV4 EV, components in the Electric Vehicle Traction Motor Assembly, which is part of the propulsion system, may cause the vehicle to shift to "neutral" due to a software issue. This condition will also trigger a "Check EV System" warning message on the instrument panel and turn on a malfunction indicator lamp. If the vehicle shifts to "neutral", this will result in a complete loss of drive power, which can increase the risk of a crash. Owners of the involved vehicles will receive a notification by first class mail. Toyota dealers will repair the electric vehicle traction motor assembly. In the involved Camry, Camry Hybrid, Highlander, Highlander Hybrid and RAV 4 vehicles, a circuit board for the electric power steering (EPS) may have been damaged during its manufacturing process. This can result in the loss of power steering assist; an instrument panel warning lamp will also come on.