Toyota projects first operating loss since 1941

[KCALB SIRAY]

NAGOYA, Japan (AP) -- Toyota Motor Corp. projected its first-ever operating loss since it began such reports, acknowledging Monday that its nine-year stretch of global vehicle-sales growth had stalled.

Crashing auto demand, especially in its key U.S. market, and the profit erosion from a surging yen proved too much for Japan's top automaker, which had been booming on the success of its fuel-efficient models, incluading the Camry sedan and Prius gas-electric hybrid.

Gloom dominated the annual news conference by Toyota's president, who in recent years had outlined ambitious expansion plans. This year, Toyota President Katsuaki Watanabe even refused to give a worldwide vehicle sales goal for 2009.

"The tough times are hitting us far faster, wider and deeper than expected," he told reporters at Toyota's Nagoya office. "This is an unprecedented crisis requiring urgent action."

Watanabe also blamed the strong yen, which has risen to 13-year highs against the dollar to about 90 yen recently.

Toyota lowered its net profit forecast to just 50 billion yen ($555 million) for the year through March 2009 -- a tiny fraction of the 1.7 trillion yen it earned the previous fiscal year.

Toyota expects to lose money on an operating basis of 150 billion yen ($1.66 billion) for the fiscal year ending March 2009. Toyota has never reported an operating loss since it began giving such figures in 1941. The only such loss it has had is an internal calculation for the year ending March 1938, a year after the company was founded.

Full Story Here
http://biz.yahoo.com/ap/081222/as_japan_toyota.html

[auxmike]

I saw this this morn. I think we're ok. American makers are'nt though. Think, would you buy from a dying brand? How careful will the upset or angry assy line workers be in Detroit? Also,some dealerships are going bye bye. That means longer drives to find some place that will do warr. work.
Toyota dealers are quite abundant by me!:thumbup:

[KCALB SIRAY]

I think Toyota is doing very well with how they are handling this issue. Moving towards the smaller line and economy style vehicles is a great move. Granted, GM does very well overseas, they need to move in the same direction and I just don't see that direction from what I have read about their plans.

[ChinoCharles]

I'm starting to feel guilty for buying foreign.

[KCALB SIRAY]

I'm starting to feel guilty for buying foreign.

Noooooo, half the U.S. cars have foreign parts anyway, lol

[ChinoCharles]

Hahaha, I know I know... but still, my next car might have to be a Ford just because. -gulp- I hope they fix themselves before it comes to that! LOL

[KCALB SIRAY]

With the way Toyota is moving, I'd also expect an increase in price of about 2 to 5 percent over the next year or two. Expect to see more soy based products like the foam used in our cars seats and others in the near future as it will become more commonplace

[puetato89]

im kinda mad about the bail out..... american cars arent what they used to be... the new hummer for example... thats all im gonna say....

[ChinoCharles]

It had to be done.

[puetato89]

i guess.... but there are so many stores own around here that arent a franchise that arent getting any business and im pretty sure they will never get a bailout

[ChinoCharles]

Yeah, but they aren't part of a massive industrial pyramid scheme. Their loss.

... wait a second, haha.

[puetato89]

true... but that makes it even more of an unfair balance

[ChinoCharles]

I know, I'm kidding.

At this point I'm one bank collapse from being a commy.

[puetato89]

:-(.... that sux...btw (i want a bailout)

[ChinoCharles]

We got one. His name is Brian. :laugh:

[puetato89]

lol....

[TinyGiant]

the bailout shows how little faith the government has in the free market it supposedly supports...

[TinyGiant]

i thought that was pretty pathetic.. hmm.. less pay and keep your job?... or no job and no pay.. lol

[auxmike]

i thought that was pretty pathetic.. hmm.. less pay and keep your job?... or no job and no pay.. lol

Hey Tiny:
Any future plans to whip up some Yaris themed T's in the future?
Oh, and yeah, the unions can be stubborn indeed!:mad:

[TinyGiant]

maybe after the holidays i'll work on something different :)

[auxmike]

Cool man, thanks!:clap:

[Latka]

I'm starting to feel guilty for buying foreign.

When the US auto makers produce a car that isn't a turd with wheels I'll consider one. They are mis-managed, bloated companies.

This is a perfect time for me to get a Yaris. Soon...soon I shall have my little machine.

[Bob_VT]

Well...... Toyota does not need any bailout funds, has a surplus of money, this is a first in the terms of a loss, outsold GM worldwide....... I wish my personal finances were so poor!

[Shroomster]

I am a bit upset that, with all of the financial problem the US makers are having, and being denied a bailout, the unions refused to budge even one inch. Their workers may 5 times the average US salary with benefits from cradle to grave, yet even when their company is about to go broke, they refuse to budge one inch. Do they not realize that, if their company closes, they wil have *no* benefits?

not arguing with you but they have received a bailout actually only GM and MOPAR did to the tune of 13.4 FROM PRESIDENT BUSH's DESK

and Canada provided an extra 1 billion or so If I remember correctly...


and on top of all this the best thing about the BANK bailout now is that none of the banks want to disclose where the money is going.....

[eht13]

I am a bit upset that, with all of the financial problem the US makers are having, and being denied a bailout, the unions refused to budge even one inch. Their workers may 5 times the average US salary with benefits from cradle to grave, yet even when their company is about to go broke, they refuse to budge one inch. Do they not realize that, if their company closes, they wil have *no* benefits?

Apparently, the UAW union is run by selfish, unreasonable idiots.

A couple of other thoughts about all this. There is usually no such thing as a purely (insert nation) car these days... the cars are generally products of parts made in various countries, assembled by people in factories in other countries, managed by companies that may or may not be headquartered in the same country as that production or assembly, etc. Not all Fords, for example, are assembled in the US... not even the ones sold in the US. And of course, many Hondas and Toyotas are assembled in the US. So obviously, American workers (including those who are not union-members, by the way) are totally capable of making high-quality, reliable cars that people want to buy; it's the management and production design of those companies such as Toyota and Honda versus the management and production design of companies like GM that seems to make the difference.

[Forrest]

I read that Ford is not applying for any buy out money. Are they planning something different?

[yaris-me]

It's not a bail out, it's a bridge loan. They have to pay it back. The banks were bailed out.