Toyota lifts profit forecast despite recall

JAPANESE car maker Toyota upgraded its full-year profit forecast yesterday even as it emerged it would suffer $2bn (£1.3bn) in extra costs as a result of recalling millions of cars around the world.

The automobile manufacturer lifted its 2009 forecast from a loss to a £550m profit, defying bad news over faulty accelerator pedals.

For the third quarter, the firm reported a net profit of £188m and said it expected to shift 7.18m vehicles in the 12-month period, an improvement on previous estimates even with the recall factored in.

Shares in Toyota continued to slide yesterday, however. The firm has lost nearly a quarter – $30bn – of its market value on the Tokyo exchange since the latest recall was announced on 21 January.

In the UK, Toyota owners will be forced to wait a week until repairs begin. Cars affected include the popular Aygo, Yaris, Auris and Avensis models. Toyota said it had identified the affected vehicles and was working with the Driver and Vehicle Licensing Agency to contact owners.

Technicians will begin carrying out the 30-minute repair operation from 10 February.