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Toyota raises Japanese base wages for first time since 2008

Toyota is on track for record profits, and in return, its Japanese workers are receiving their first increase in base wages since 2008, plus higher pay based on seniority and a larger bonus for 2014. The Japanese automaker predicts the average laborer will net a 2.9 percent income gain.
The average Toyota employee will earn 2,700 yen ($26.28) more each month, a 0.8 percent increase from last year. Workers will also receive about 7,300 yen ($71.09) more monthly based on seniority and promotions. Finally, the company's union pushed through a median bonus of 2.44 million yen ($23,768) for 2014, the highest in 6 years.
The pay boost comes as Toyota forecasts a record 1.9-trillion yen ($18.5 billion) profit for the fiscal year ending on March 31, according to Bloomberg. It has been helped by the Japanese government's efforts to weaken the yen on international markets and expand inflation. Prime Minister Shinzo Abe has been asking businesses to increase compensation to end years of deflation and offset upcoming higher sales taxes. Honda and Nissan have also raised their wages there in recent months.

Toyota plans biggest stock buyback in over a decade

At the end of December, 2013 Toyota had a cash stockpile of 1.8 trillion yen ($17.5B US). As of March 31, at the end of its current financial year, company coffers are expected to swallow another 1.9 trillion yen ($18.4B US) in net profit - said to be a record sum for the Japanese automaker. In a gesture signaling a turnaround from the horrors of the global recession, Bloomberg reports that Toyota will buy back 60 million shares of its stock, as much as 1.89 percent of the company, for something like 360 billion yen ($3.5B US). It's the first buyback since 2009 and the largest buyback since 2003, when it spent roughly 390 billion yen ($3.8B US) repurchasing shares.
Company president Akio Toyoda founded the Toyota Mobility Foundation (TMF), a non-profit that will support international groups working on transportation issues in emerging markets. Half of the stock that Toyota buys, 30 million shares, will be sold to the foundation via the Japanese Trustee Services Bank for one yen per share, the dividend providing the foundation's initial funding. The other 30 million shares will be canceled, a company spokesman telling Reuters that the company wants to reward shareholders.
Industry analysts have been asking Toyota to either return money to shareholders or invest in new factories, but Toyota has ruled out the latter. After getting burned with excess capacity when the financial crisis came, the company is focused on extracting efficiencies from the plants it already has. Toyota has said it plans to complete the buyback by June of this year.

Toyota takes i-Road tests to the streets of Tokyo

OK, here's where we think those road tests will start to get a little scary. Those super-narrow all-electric three-wheeled Toyota i-Road vehicles may have looked great sashaying through the towns of the French Riviera. But now? They're being tested in Tokyo. Hoo boy. The Japanese automaker says it'll start testing the i-Roads in the country's largest city on March 24 and will do so through early June. And while there will be some industry experts among the 20 participants, there will also be some regular folks who we hope won't find out the hard way how well those 660-pound, one-yard-wide vehicles perform in crash tests. In the meantime, we'll cross our fingers. The cool thing is that the i-Road now comes in five colors: blue, green, white, yellow and what looks like a magenta-fuchsia-type hue. Earlier this month, Toyota said it started testing the vehicles in Toyota City, Japan, as part of a broader program called "Ha:mo" where people link shared vehicles with public transportation systems (it stands for "Harmonious Mobility Network"). The three-wheeler was unveiled at the Geneva Motor Show early last year before getting the star treatment in a French Riviera-locale video. Check out Toyota's press release below and read our impressions of driving the i-Road here.