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Toyota profits up 23% on high US sales, despite mounting legal costs

Toyota earned $9.3 billion in net income in the financial year that ends next month. The number beats earlier forecasts and marks a five-year high for the automaker, with both operating income and revenue up by 9.5 percent and 2.5 percent, respectively. Toyota saw quarterly profit enjoy a year-on-year jump of 23.4 percent, with the manufacturer earning more than $1 billion between October and December 2012. The good news comes in spite of the fact that the Japanese automaker actually endured an operating loss in North America, due in part to legal fees.
Toyota is set to pay more than $1 billion to owners who claim their vehicles decreased in value as a result of the company's recent spate of recalls. Even so, all three of the automaker's brands enjoyed a 13.5 percent sales increase in the US in the last quarter, beating the industry average. Toyota faltered in Europe, however, where it earned $99 million in operating profit last year, compared to $111 million in 2011. You can take a closer look at the company's full press release below for more information.

2016 Scion iM Review [w/video]

Scion is all grown up. When the brand launched in 2003, it was as if Scion wanted to be the anti-Toyota. You could almost imagine it saying, "We aren't our parents, dude. We're different." Scion's decision to eschew mainstream vehicles was largely successful. The original xA, xB, and tC were affordable, economical, stylish, and – most importantly – different. But the brand's aging lineup couldn't keep the interest of the young, urban buyers it so coveted. Sales suffered severely after the 2009 industry collapse and have failed to return to their 2006 peak. So much like the bearded 20-something that's finally realized an artisanal headcheese startup isn't going to pay the bills, Scion has finally introduced its first truly mainstream model, the 2016 iM. You already know the basics on the iM, courtesy of Managing Editor Steven Ewing's testing in California in June. But since there's little substitute for more mileage and extra time with the car, we ventured out to Michigan's second largest city, Grand Rapids, for a second look. The iM is exactly the kind of vehicle Scion needs right now. Ewing spent most of his time on California's beautiful winding roads, but our second go in the iM was much more sedate, consisting largely of freeway cruising and some city driving. In short, these miles backed up our original assessment: the iM is exactly the kind of vehicle Scion needs right now. But that's not without a few problems. We spent almost all of our drive time behind the wheel of the continuously variable transmission model which, in many ways is better than the six-speed manual-equipped car we originally tested. Toyota's CVT works well; it's on par with the industry's best. The transmission keeps the revs low and responds quickly to throttle inputs, but at the same time, the tach needle is quick to retreat when acceleration isn't demanded. The stepped nature of the CVT is a bit off-putting at first – it feels a lot more sudden on the "upshifts" – but it's easy to ignore. Weirdly, there are no paddle shifters, but you can still pick your "gears" via the floor-mounted shifter. The iM doesn't hate a little bit of fun. We played with the CVT's sport setting, and while we wouldn't recommend using it on a regular basis, we liked the way it kicked up the revs upon corner entry. The engine never felt flat-footed midway through a turn, giving the impression that the iM doesn't hate a little bit of fun.

Incrementally better than ever | 2017 Toyota 86 First Drive

We'd love to tell you that the incremental upgrades bestowed upon Toyota's rear-wheel-drive coupe as it made its transition from Scion FR-S to Toyota 86 have transformed it into a perfect sportscar. If only a few more horsepower, shorter rear-end gearing, and tiny aero updates were enough to quell all the complaints that enthusiasts have leveled at the machine since the platform first hit the road in 2012, this review would have been so much more satisfying to write. Sadly, that's not the case. Don't get us wrong. The 86 is still extremely fun to toss around a twisty road. The chassis is impressively balanced, the steering is direct, and the shifter is sweet. Sorry to impart upon you this well-worn trope, but the old adage that it's more fun to drive a slow car fast than it is to drive a fast car slow is, in this case, completely accurate. The 2017 Toyota 86 is nothing if not entertaining. But it's not completely new. It hasn't been transformed. It is, in the end, the same as it ever was. It will take about three minutes of your time to watch the videos below, in which we cover pretty much everything that's new for the 2017 Toyota 86. Toyota 86s equipped with manual transmissions get a five-pony boost to 205 horsepower and 156 pound-feet of torque. Automatic models soldier forth with a carryover 2.0-liter four-cylinder that puts out 200 hp and 151 lb-ft. Apparently, more than half of Scion FR-S buyers chose the automatic. That's unfortunate, as it drains a good deal of the fun out of the 86 experience. Choose the manual and you'll be rewarded with an easy clutch and a rewarding short-throw shifter. And, as we said, five more ponies, courtesy of intake and exhaust tweaks and the polishing of some internal engine components. The only upside to the automatic is improved fuel economy of 24 miles per gallon in the city and 32 on the highway. Manual 86s are EPA-rated at 21/28. Along with the small bump in power, the 2017 86 gets a 4.3:1 rear-end gear ratio in lieu of the old 4.1:1 unit. That ought to translate into a small improvement in acceleration that really only matters on paper. In the real world, on actual roads, the difference is negligible. To eke the most out of the 86, you have to constantly work the shifter and keep the engine north of 5,000 rpm. It's still not particularly quick, but it's definitely fun. There's plenty of noise inside the 86, from the wind, the road, and the engine.