A report published in the Detroit News yesterday from the CEO of Toyota Motor Sales USA, Yoshimi Inaba, has revealed that the company’s operations in North America are “no longer profitable”.
Mr Inaba cites current market forces and “boring” cars as some of the reasons behind the brand’s downfall.
Following Toyota’s runaway success in the region over recent years the news comes after the announcement three months back of the company’s first-ever full year operating loss.
It seems that despite the Japanese manufacturer’s drastic cost cutting measures US sales were down 38 per cent for the first half of 2009, outpacing the overall market decline of 35 per cent.
Mr Inaba says that although the downtrodden economy is undoubtedly behind some of Toyota’s sales decline, he also blames the company’s current model lineup.
“Toyota is a good car but not exciting. Those are the comments we usually (or) always get,” said Mr Inaba.
Mr Inaba went on to say that Toyota’s future vehicles will be “more exciting and more nimble” when the company’s North American operations do return to profitability next fiscal year