Toyota president Akio Toyoda has said he feels a “strong sense of crisis” about the firm’s car making process after the Japanese company's profits fell last year.
The Toyota Motor Corporation’s net income fell to ¥1.83 trillion (£12.4 billion) for the fiscal year ending in March 2017, down from ¥2.3tn (£15.5bn) in the previous 12 months. It is the first time in five years that Toyota's profits have fallen.
Toyota actually sold more cars in the last fiscal year – 8,970,860, a rise of 289,532 from the previous period – and cited the strength of the Japanese yen as a major factor behind the fall in profits. Toyota warned it expected profits to drop to ¥1.5tn (£10.1bn) for the 2018 financial year as a result.
While citing the impact of currency markets on Toyota’s profits, Toyoda promised that the results would prompt the firm to “take a critical look at our true selves and strive to improve our competitiveness”.
Toyota was recently overtaken by the Volkswagen Group as the largest producer of cars in the world.