Toyota has posted a 28 per cent fall in profits for the first quarter of 2008 and expects its annual figures will also show a fall.

Income dropped to £1.6 billion as the company posted a 28 per cent drop in profits on the back of falling demand in the US as the credit crunch continues to have an effect.

Surging metal costs as well as the price of the Japanese yen have caused the company to post a fall in profit despite the popularity of some of its fuel efficient vehicles.

Cars such as the Yaris and the new hybrid Prius have been popular worldwide and impacted on sales between January and March which increased.

Despite the disappointing profits, Toyota's Prius was named as the highest ranking model in the JD Power and Associates/What car? 2008 UK Car Consumer Index Study.

It achieved a scored of 901 with owners pleased with the reliability of the model.

Source:

US slowdown puts brakes on Toyota, 08/05/08
http://news.bbc.co.uk/1/hi/business/7389324.stm

Toyota Prius Ranks Highest in Satisfying Customers in the UK for a Second Consecutive Year, 08/05/08
http://www.jdpower.com/corporate/news/releases/pressrelease.aspx?ID=2008047