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Toyota could lose more that $1b during second half of fiscal year


Cougarpower

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When the Big Three CEOs appeared before a Congressional board earlier this month, many of the government representatives implied that if Ford, Chrysler and General Motors simply ran their businesses like Toyota, there would be no need for a government bailout. However, a new report indicates that Toyota could be in some hot water of its own, with plenty of red ink staring the Japanese automaker in the face.

 

According to a report first published by Asahi, Toyota – the poster child for profits within the automotive industry – could lose $1.1 billion during the second half of its fiscal year. In all, the losses from October to March could reduce Toyota’s full-year profits by more than 80 percent.

 

In addition to collapsing sales – Toyota’s U.S. sales were down 34 percent last month – the company is also fighting the strong value of the yen. During 2008 the yen gained 23 percent against the dollar and 34 percent against the euro, according to Bloomberg. Because of the strong value of the yen, sales in other regions are shriveling up by the time they return home to Japan.

 

 

 

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I've been telling you that they're human. And that the yen isn't being kept artificially low. It reached the highest value I've ever seen it earlier this week.

 

The yen HAD been kept artificially low. For some time, the Japanese government has been trying to get away from that practice. Things like this are the result of that.

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NPR reported this morning that Honda is looking at a 60% dip in profits. It isn't just the Big 3. The imports are still parking cars all over southern California and thier US plants build for a shrinking US market. I predict that Mercedes and BMW's SUV production will take a big hit as will Toyota's truck plants. There is no where to send these products. I guess we will see what kind of bang for the buck the southern states get for their subsidies when production stops for vehicles "nobody wants to buy".

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NPR reported this morning that Honda is looking at a 60% dip in profits. It isn't just the Big 3. The imports are still parking cars all over southern California and thier US plants build for a shrinking US market. I predict that Mercedes and BMW's SUV production will take a big hit as will Toyota's truck plants. There is no where to send these products. I guess we will see what kind of bang for the buck the southern states get for their subsidies when production stops for vehicles "nobody wants to buy".

 

Perhaps they will Follow Ford decision to close their "southern" factory in Atlanta, move production of midsize cars to Mexico.

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Yeah, I don't pitty Toyota... I rented from Hertz the other week (Mazda3) and the lot was over 1/4 Toyota. Then, upon returning my car, a guy drives up behind me with a Corolla that keeps stalling that he just took out of the lot. As he walked away... "that's Toyota quality?"

 

Priceless. Eventually, reality catches up.

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Yeah, I don't pitty Toyota... I rented from Hertz the other week (Mazda3) and the lot was over 1/4 Toyota. Then, upon returning my car, a guy drives up behind me with a Corolla that keeps stalling that he just took out of the lot. As he walked away... "that's Toyota quality?"

 

Priceless. Eventually, reality catches up.

 

Perhaps this will motivate Toyota to leave than NUMMI plant and abandon the UAW labor that puts those Corollas together.

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