Nobody Is Safe - Toyota's Operating Loss Swells to 5 Billion

Discussion in 'OT Driven' started by TriShield, Feb 6, 2009.

  1. TriShield

    TriShield Super Moderator® Super Moderator

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    Toyota sees wider losses as sales slide

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    By Jonathan Soble in Tokyo

    Published: February 6 2009 07:27 | Last updated: February 6 2009 08:16

    Toyota Motor warned on Friday that its expected loss for the financial year to March would be three times larger than it had previously forecast.

    The Japanese carmaker, which like its rivals around the world has been battered by the worst industry slump in decades, promised further cost-cutting measures in response, though it ruled out permanent factory closures or “involuntary” job cuts for full-time staff.

    Toyota now projects an operating loss of Y450bn ($5bn), against an earlier forecast issued in December of Y150bn. As recently as November it had expected to earn a Y600bn profit – a reflection of the swift collapse of global demand in recent months.

    Toyota warned for the first time that it would fall into a loss at the net level as well, projecting a deficit of Y350bn. A surge in the value of the yen has also hurt its business, although Friday’s revision was due almost entirely declines in sales.

    Toyota has slashed production, shrunk its contract workforce and cut management pay. It reduced its forecast for vehicle sales this year by a further 220,000 units on Friday to 7.32m and said it was aiming to cut fixed costs by 10 per cent.

    Toyota last month chose Akio Toyoda, grandson of its founder and a current deputy president, to take over as chief executive in June. Mitsuo Kinoshia, another Toyota deputy president, said on Friday: “We are working to make sure that the last quarter and this quarter are the bottom, so that we can start to rebound next year.”

    In a sign of the deep uncertainty surrounding the industry, however, Toyota continued to withhold forecasts for sales and production next year.

    Moody’s has cut its triple-A rating on Toyota’s debt, reducing it to Aa1, and warned that further downgrades could follow. Toyota had been one of the few large companies to hold a top-notch credit rating from all of the three big agencies until Fitch cut its assessment in November.

    Toyota’s sales fell 4 per cent worldwide in 2008, led by a 15 per cent slide in the US, its biggest market. Conditions have worsened since the financial crisis accelerated in September: Toyota’s US sales have fallen by more than one-third in each of the last three months.

    Last year the company – which has overtaken an even harder-hit General Motors to become the world’s largest vehicle producer – earned a record operating profit of Y2,700bn.

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  2. 2DR Vette

    2DR Vette We don't freestyle the Eyes of Texas, Big Boy.

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    It's all GMs fault.
     
  3. nicklol

    nicklol Nu OT Supporter

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    :werd:
     
  4. Bona Fide

    Bona Fide Guest

    Nissan might be asking Japan for a loan soon.
     
  5. H Dog 14

    H Dog 14 New Member

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    I love toyota though.
     
  6. TriShield

    TriShield Super Moderator® Super Moderator

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    Our government's bailout frenzy is triggering a similar phenomenon across the globe of automakers approaching their governments, hats in hand, for money as well.
     
  7. borborygmus

    borborygmus Guest

    yeah, the auto industry is kind of fucked right now.
     
  8. BLoG

    BLoG Scented Meat

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    it's all the RIAA's fault
     
  9. WildBull

    WildBull Guest

    eventually we'll have a demand for vehicles over time when companies aren't producing as much.
     
  10. nicklol

    nicklol Nu OT Supporter

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    are they gonna ask the Frecnh government too?
     
  11. garagegenius

    garagegenius New Member

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    Wirelessly posted via wap.offtopic.com (Get money. Fuck bitches.: SonyEricssonW580i/R8BE Browser/NetFront/3.3 Profile/MIDP-2.0 Configuration/CLDC-1.1 UP.Link/6.3.1.20.0)

    Meh. They're still not hurting as bad as the american companies.
     
  12. hondaluva

    hondaluva likes free hugs...

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    The cool thing is that none of the Japanese makes would go anywhere.... Mitsubishi would purchase them at a moment's notice. :o
     
  13. dmora

    dmora Guest

    at least they're sitting on billions in the bank.
     
  14. hondaluva

    hondaluva likes free hugs...

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    I beg to differ.

    It was just posted above that nissan is asking for a loan...

    And Honda's bread and butter was selling cars in north america.

    Subaru and Suzuki are doing well in comparison.
     
  15. guest

    guest 

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    plus cars made in the last 7 years are more reliable than ever so people don't need to replace their cars as much, not like the crap boxes made in the 80's or 90's
     
  16. nuclear

    nuclear OT Supporter

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    Rise of the Yen is one of the biggest factors.
     
  17. ls1norcal

    ls1norcal New Member

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    What the fuck is point of the picture of the wrecked Tacoma?
     
  18. Vex

    Vex Huge Member OT Supporter

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    Toyota has the same problem as GM, they make too many different vehicles some of which compete with each other.
     
  19. you know me

    you know me OT where the douchbags play

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    thats what happens when you produce decade after decade of ugly boring cars
     
  20. jonik

    jonik Active Member

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    are you talking about GM? Because I hope you aren't talking about Toyota :rofl:
     
  21. gaara46

    gaara46 OT Supporter

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    new prius will make them so much money they will buy GM, the honda f1 team, and kawasaki's defunct motogp project and turn that into a race winning bike only using one wheel
     
  22. you know me

    you know me OT where the douchbags play

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    yeah becaue toyota is known for their great looking fun to drive cars....
     
  23. uf20wop

    uf20wop OT Supporter

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    maybe they should stop making faggot cars and go back to what they used to do
     
  24. jonik

    jonik Active Member

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    who the fuck cares what kind of cars they make, the important thing is that they fucking sell, that is what all American companies have not yet realized. Oh and a good 2/3 of their cars on the Lexus line is better than any American shit out there.
     
  25. you know me

    you know me OT where the douchbags play

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    dude you can't make fun of toyota
     

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