RE: Toyota 'to Make First Loss Since 1930s'
Monday 22nd December 2008
Toyota could be heading for its first annual loss in 71 years because of falling sales. In perhaps the strongest indication yet that the automotive industry is in serious trouble, Toyota said it expected a loss of 150bn yen (£1.1bm) in yearly operating profits – from its core operations.
Toyota 'to Make First Loss Since 1930s'
Japanese carmaker has been forced to slash its net forecast
The carmaker’s plight has not been helped by the rising yen, which has seen export levels down 26.7% from the previous year. It has been forced to slash its net forecast by 90% to 50bn yen, meaning it will barely break even.
In a bid to battle the global economic crisis the manufacturer has now had to cut production, slashed earnings forecasts and layed off temporary and part-time workers.
‘The change that has hit the world economy is of a critical scale that comes once in a hundred years,’ Toyota's president, Katsuaki Watanabe, told reporters at the company's headquarters in Nagoya.
The economics minister, Kaoru Yosano, said he found it ‘difficult to imagine’ that Japan would see an improvement in the near future given the desperate state of the global economy.
When asked whether there was likely to be any improvement, he replied: ‘God only knows. Now is not the time to talk about a bright tomorrow. For now we are focused on how to present a bleak tomorrow.’
Discussion
cvegas said:
They have had 66 years of profit so I'm sure there is plenty of yen in their piggy bank.
The problem is even the biggest players are forced to reinvest virtually all profits back into model development to try to stay ahead of the game anad legislation. It's a battle of attrition and most car companies are cash poor as a result, therefore very exposed to downturns in the economy as we are seeing.Or is the truth that, they are, like many banks who have been telling porkies about the fantastic state of their books, they are using the present global downturn to come clean. That the fantastic published profits of years gone by, were maybe a little Hans Christian Anderson and now is the time to get the bad news out along with everyone else. Yes I know it's a cynical view. But if you really did have an unbroken line of yearly profit, why would your top man be shouting PANIC! in the way he is.
Edited by DWP on Monday 22 December 18:04
urban_alchemist said:
philis said:
If theyve been making profit on that scale since the 30's then whats all the fuss about.
Surely then can afford to just cover the costs for a year or too.
I think the point is: if Toyota's losing money, everyone else is fSurely then can afford to just cover the costs for a year or too.
ked...As quoted the worry is that as the US and to some extent 'rest of the world' look to the japanese as at least having the best business process and leanest production then everyone including Toyota is looking for a new way of doing business!
The only way to sell cars may possibly be to sell a car that people, and lots of them, will pay a premium to drive - Honda are possibly on the right track with hydrogen technology. At the other end the rest of us will drive coal fired chinese made QQ cars
Toyota's cash may see them through - but not many others will make it to the other side.
ceriw said:
and don't forget that the Japanese are known for their restraint when it comes to presenting bad news... loss of face in Japan is a huge deal to them.
Therefore it's safe to assume the situation is pretty grim, and for a company that hasn't posted a loss since the 30's....
I think that loss of face perception is largely outdated these days and has become just an interesting western view of asian culture. Therefore it's safe to assume the situation is pretty grim, and for a company that hasn't posted a loss since the 30's....
But the situation is pretty grim and todays press conference with Toyota's top brass represents a sea change from the optimism of only a few weeks ago.
As far as i know Toyota is the richest automotive company in the world and has not been frivilous with their cash over the years, instead building massive reserves which i think will safely see them through the current problems.
Lets see whay happens but i'm sure that they will cut back on some models in the coming months.
"Lets see what happens but i'm sure that they will cut back on some models in the coming months."
Sweet Jesus let it be their 'halo' model; the (loss leading?) enviro., 'A' lister must-have CO2 myth perpetuating ballsack of a dogwipe The Prius!
Sweet Jesus let it be their 'halo' model; the (loss leading?) enviro., 'A' lister must-have CO2 myth perpetuating ballsack of a dogwipe The Prius!
Edited by ebo on Monday 22 December 18:27
I know the prius is not everyones favorit car on here but everyone seems to slate it, the idea which has been around now for last 8 years is that toyota designed a decent sized family car that will use half as much fuel as a car of its same size.
when will people realise that these cars will save are oil and petrol stocks so that we can keep are normal cars on the road, the future will be these types of vehicle or hydrogen power,
that way in the future you can keep your sports car in the garage and use the electric/hydrogen power for every day stuff what would you rather have people carry on using petrol and when stocks get to low the price of it goes through the roof.
I know these cars are not briliant but once they iron out the problems they will be good investment.
when will people realise that these cars will save are oil and petrol stocks so that we can keep are normal cars on the road, the future will be these types of vehicle or hydrogen power,
that way in the future you can keep your sports car in the garage and use the electric/hydrogen power for every day stuff what would you rather have people carry on using petrol and when stocks get to low the price of it goes through the roof.
I know these cars are not briliant but once they iron out the problems they will be good investment.
skid-mark said:
I know the prius is not everyones favorit car on here but everyone seems to slate it, the idea which has been around now for last 8 years is that toyota designed a decent sized family car that will use half as much fuel as a car of its same size.
when will people realise that these cars will save are oil and petrol stocks so that we can keep are normal cars on the road, the future will be these types of vehicle or hydrogen power,
that way in the future you can keep your sports car in the garage and use the electric/hydrogen power for every day stuff what would you rather have people carry on using petrol and when stocks get to low the price of it goes through the roof.
I know these cars are not briliant but once they iron out the problems they will be good investment.
so a vw bluemotion polo it is thenwhen will people realise that these cars will save are oil and petrol stocks so that we can keep are normal cars on the road, the future will be these types of vehicle or hydrogen power,
that way in the future you can keep your sports car in the garage and use the electric/hydrogen power for every day stuff what would you rather have people carry on using petrol and when stocks get to low the price of it goes through the roof.
I know these cars are not briliant but once they iron out the problems they will be good investment.
Gassing Station | Motoring News | Top of Page | What's New | My Stuff