Toyota's European Auto Business Swings to a Profit

Toyota Motor Co. will turn its first European automotive operating profit in five years in the fiscal period ending March 31, according to Didier Leroy, the company's chief for the region.

Leroy tells reporters on the eve of the Geneva auto show that the unit posted a €209 million operating profit in Europe in the April-December period of 2012, excluding results from its finance arm.

Toyota's auto business lost about €1 billion ($1.3 billion) in Europe from 2007 through 2010. Thanks to its lending unit, the company recorded modest earnings there last year. Toyota's 41-country European unit includes Russia, central Europe and Turkey.

Leroy confirms that the company still aims to sell 1 million Toyota and Lexus vehicles in that region by 2015 compared with 838,000 units last year. The unit expects to boost its sales to 850,000 vehicles this year despite a 5%-10% drop in industry volume, The Financial Times reports.

Leroy says Toyota will overcome Europe's slump because of strong hybrid vehicle offerings and new model launches. He also tells the FT that the company seeks to increase its European market share by 0.3 points to 4.8% this year and to at least 5% by 2015.

Toyota is currently reassigning vehicles among its factories in the region. When that is complete, the unit will use about 80% of its annual capacity of 600,000 units, Leroy predicts.