Report: Toyota could lose more that $1b during second half of fiscal year
12/16/2008, 5:31 PM
By Drew Johnson
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.
Toyota announced in November that it expects operating profits for the current fiscal year to decrease by 74 percent, totaling 600 billion yen. That updated prediction was off 63 percent from the automaker’s original forecast from earlier in the year.



12/16, 5:36 PM
posted by:
DB9
When all is said and done it will be a lot more then that. Fasten your seat belts, stage II of global economic meltdown is on the way.
Sorry Virginia, Santa isn’t coming this year.
DB9
12/16, 5:37 PM
posted by:
schumann
Ford is gonna be #1 again. FORD RULES!
12/16, 5:47 PM
posted by:
wbent
I will bet you the Japanese goverment won’t dress them down publically like our politicians do. I am sickened by politicians blantant power grab and the media turning a blind eye to actually events. Little things like Yahoo having a picture of a Ford sign, American flag and the headline of “Bail out fails” when Ford has said no thanks. Not a bail out and Ford is not a part. Toyota has been lobbing for the same things in Europe and the rest of the world without the media even acknowledging it till now. Kudos Leftlane!
12/16, 6:05 PM
posted by:
Lionwithoutpride
Uh-oh . . . I hope tripleonefive is sitting down when he reads this. Dangit, looks like Fiat’s exec might have been right about that whole consolidation thing and us ending up with just 6 int’l auto companies.
12/16, 6:05 PM
posted by:
mayer_ray_nagin
See! The Japanese are copying us again!
12/16, 6:11 PM
posted by:
bolex
lol mayer!
12/16, 6:25 PM
posted by:
andy
haha mayer_ray…
Wbent is right, its such BS that the media is all over the big 3, namely GM about getting a loan, when toyota asked the euro governments for 100% more than what the big 3 were gunning for from the US…. and correct me if im wrong, but they got it?
12/16, 6:57 PM
posted by:
gbb
I hope Yota folds and Tata buys them.
12/16, 7:01 PM
posted by:
Ed103
It seems that the point is that even Toyota is hurting right now. While this should be acknowledged, one must also acknowledge that Toyota is hurting despite the fact that for the past 20 years, it has run itself so that they don’t have huge overhead costs, produce a wide range of cars that include small, fuel efficient models and has tried to stay at the forefront of technology and quality. These are all things that the American car makers have failed to do. Perhaps that would be why governments would be more inclined to giving them support. Hmmm?
12/16, 7:37 PM
posted by:
CanGo87
I’d rather loose a Billion in a half a fiscal year then a few billion a month… im investing in bikes
12/16, 7:45 PM
posted by:
wbent
Really Ed103…..Show me the proof. What about the class action suits on Tundra and Camry, theres your quality. Take any measure Ed, Safety, Quality, Things gone wrong index, fuel efficiency any Ed and I will put Ford up against them. Think the San Antonio or Indiana plants were wise investments, might of been but they were bought and paid for buy the tax payers through huge tax breaks “our goverment” gave them for locating in the south. Then Mr Shelby has the nerve to talk about competiveness. Mistakes have been made but funny thing is the top selling vehicle in the world is …..what Ed…c’mon say it with me F-series. It seems to me just a few years ago Toyota was criticized for not having a true full size truck. So they devoloped the biggest piece of smoke and mirror crap on the planet. Go to U-tube and check the Toyota on silver creek. Toyota quality is a myth, through up any other but don’t talk to me about Toyota and quality. Toyota was called before their own goverment over the disgrace of the quality of their products and at that time it was Sienna and Camry issues 2 years ago. But the Myth goes on.
12/16, 7:48 PM
posted by:
jonmiles
I second DB9’s post
12/16, 8:02 PM
posted by:
DrFill
wbent
It seems to me just a few years ago Toyota was criticized for not having a true full size truck. So they devoloped the biggest piece of smoke and mirror crap on the planet.
By smoke and mirror, you mean Tundra smoked F-150’s heated mirrors with a REAL engine, and REAL 10k towing, not the couple of days it take the $1.50 to move two loads (Itself and the trailer). Check engine light comes on when it sees a 2% grade, UNLOADED!
And let me know when the $1.50 can take the IIHS crash test without exploding on impact
ONCE!
DrFill
12/16, 8:13 PM
posted by:
DrFill
And congrats to Ford for FINALLY making the $1.50 safe after over 50 years of monkey crap!
DrFill
12/16, 8:18 PM
posted by:
miket
1B writedown in a year? Im sure Toyota has that in their “war chest” Every business hits hard times…thats why you do something called “planning” which keeps you out of the bailout line in DC.
wbent-
The only “Myth” out there is that domestic brands have the same poor quality they had in the 80’s. Too bad they burned a lot of bridges with customers….maybe some will come back.
PS – try not to reference Youtube for your evidence. Makes the “myth” you have no idea what your rambling on about….it tends to make that a fact.
12/16, 9:20 PM
posted by:
Kaizen
Toyota has about $16 billion in cash on hand.
12/16, 10:26 PM
posted by:
olds307
miket— poor quality in the 80s? My 1981 Olds has been more reliable than some of my customers’ 90s Hondas!
12/16, 10:29 PM
posted by:
olds307
oh yeah, and Dr. Fill once again proves he doesn’t know $SH.IT about cars.
12/16, 10:38 PM
posted by:
moparsalesman
You know i get a kick out of all you people with nothing good to say about domestic vehicles. Then when
a foreign company gets in trouble you make up all kinds of excuses of how its not their fault and they will get through it. The hippocrits in this forum are astounding and if toyota and honda are so good why are they not selling as many vehicles in their country as we do? I am a sales consultant for a chrysler dodge jeep and suzuki dealership. We are a well established dealership and have been there for 15 years. We have so mmany repeat customers for all of chryslers brands. Most of these customers you could not get them into something else. The auto industry collectively is in trouble because of an economic meltdown in large part due to oil prices this last year and the damn sub prime mortgage crisis. The big 3 cannot be allowed to fail we will have a much worse situation on our hands.
12/17, 12:17 AM
posted by:
FairlightRacing
Why am I not surprised to see tripleonefluffer avoiding this thread? At one point in time, Toyota used to make quality vehicles. They even had a few exciting ones in the MR2 and the Supra. Now they are total **** and are passing GM on the stairs going in a burning building as GM heads toward safer ground.
I only hope Congress pulls its head out of its ass and supports the heart of our industrial might through this transtition. America will not prosper in the long-run with a service-based economy.
12/17, 8:47 AM
posted by:
Tritonpower5.4
The Japanese automakers arent this all conquering juggernaut that everybody seems to think they are. This is simple, Toyota is on its way down and Ford is on its way up. Oh and byt hte way the Tundra is all smoke in mirrors. Yeah its big and has a big engine. Thats it. Go to http://www.pickuptruck.com to see how it really fares in truck duty.
12/17, 12:06 PM
posted by:
sj79
will this news make the NYT? what is Tom Friedman going to say about all this? The “experts” have said that any company that makes hybrids and shuns trucks will make billions easily.
12/17, 1:26 PM
posted by:
jackjimturkey
Anybody still doubting that times are hard?
schumann: “Ford is gonna be #1 again.” I assume you mean ford will return to the sales peak. Not likely.
mayer_ray_nagin: “See! The Japanese are copying us again!” Good one.
gbb: “I hope Yota folds and Tata buys them.” be funny if tata buys GM Toyota and VW in one fell swoop.
wbent: i’m not going to get into toyota quality, other than to say i’m from a family of five former toyota owners. The construction workers at the San Antonio plant drove Ford trucks.
jonmiles
DrFill “$1.50″ is a good one, but the F-150 is the second best truck (the GM trucks are marginally better).
miket: “The only ‘Myth’ out there is that domestic brands have the same poor quality they had in the 80’s. Too bad they burned a lot of bridges with customers….maybe some will come back.” Problem with that is, that some people bought and liked imports, and could now give a damn about domestic quality. First step will be getting people out of what they like.
olds307: My ‘83 Cavalier, supposedly the biggest dung-heap ever, got wrecked at 190K. Or 15,000 miles past where my toyota and honda died combined.
moparsalesman: I think it is the domestics’ fault people bought imports. Not really their fault the economy tanked, though.
“We have so mmany repeat customers for all of chryslers brands.” maybe it has more to do with customer service than product quality.
“The auto industry collectively is in trouble because of an economic meltdown in large part due to oil prices this last year and the damn sub prime mortgage crisis.” yep. And, that’s exacerbated by labor costs the Big Three can’t afford to pay.
12/17, 3:18 PM
posted by:
miket
Olds307-
Congrats on having your car for so long….here’s my experience with domestics that I have owned and worked on– 82 Malibu – nothing but trouble…90 T-bird V6 – head gasket around 70k (warped a head due to overheating as well – happened on the highway) tranny @ 90K. Everyone I know that had a tbird or cougar of that vintage had the exact same problems at the same rough mileage. 88 bronco II, head problems, 4WD issues @ 60k lifters rattled like a machine gun, even after replacement and adjustments (I know they were hydraulic, but some small adjustments can be made). 97 Jeep TJ, cat converter @ 30K (dealer replaced after lots of arguments) cam position sensor went 40K. Broke down on highway due to bad sensor on a holiday weekend. Cost me a fortune to repair at a really shady dealership. Loved my Jeep–but left a bad taste in my mouth.
Here’s my experience with Domestics 90’s corolla – alternator @ 130k. Sold it at 197k. 03 Civic Si 45k, no issues (beat the hell outta it too, autocross occasionally). 07 Honda Pilot 20k and no issues.
My lease runs out next year and for the first time in a while, I am considering a domestic…..Please don’t peg me as a hater….just an opinion based on experience.
12/17, 3:19 PM
posted by:
miket
Correction – Corola’s, civics, and pilots are not domestics…….but you all already knew that!
12/17, 4:03 PM
posted by:
yarddog82abn
THIS IS SOME FUNNY AS SH!T…
LOOK, I SELL COMMERCIAL VEHICLES, ALL BRANDS, AND THE NUMBERS SPEAK FOR THEM SELF’S THERE ARE WAY MORE 2007-2008 “GAS POWERED” AMERICAN BAND TRUCKS USED BY THE COMMERCIAL INDUSTRY THEN ALL OTHERS, SO IF TOYOTA TRUCKS ARE SO GREAT, THEN WHY DON’T BUSINESS OWNER’S, CONSTRUCTION CORP.’S, UTILITY COMPANY’S, HECK EVEN CITY’S, DO NOT WANT TO BUY OUR TOYOTA TRUCK’S, WHY DO THEY LAUGH AND SAY “THAT’S NOT A WORK TRUCK” SO AS DECEMBER 1st. WE GOT RID OF THEM, WE TOOK OFF THE TOOL BOXES, THE RACK’S, THE CARGO BEDS, LOADED THEM ALL ON RIGS AND SAID “SAYANARA”…
SO TOYOTA… YOU WANTED TO BE “No. 1 IN THE WORLD” SO DEAL WITH IT, BE CARE FULL OF WHAT YOU ASK FOR YOU JUST MIGHT GET IT…
12/17, 4:13 PM
posted by:
shaver
Do we really need to revisit the import vs domestic issue. Everyone here has made up their mind and will never change it. People like 1115/olds307 would defend their brands to the end even after the entire board of Toyota/GM raped their sister and mother. Their that delusional. Its business, nothing more.
12/17, 6:46 PM
posted by:
wbent
Hey Dr fill pop the hood on your Tundra and that “awesome” 5.7L and look there at the exhaust……WTF what are those little tubes going into the exhaust? Could it be ……. holy crap it is. Its a air pump system so they don’t plug up their catalytic. Gee whiz didn’t Gm axe that a few years ago….like 10. Why on earth would they need that, could it be that there engine is so ineffieceint that it has the lowest burn rate in the industry. I am super impressed with 1500 rpm torque rate too, hell I have Rangers that produce more than 185lbs@1500. Lets see…..camshafts, tailgates, suspension bounce. Go to NHTSA under customer complaints and let the light shine Fill. Let it shine.
Hey Fill guess what Ford does and can build a 500hp 5.4L V8 that will meet the 150,000 mile durability tests, doesn’t mean its right application for a truck.
Shaver you are right and I will give kudos to any manufacturer that does a good job, however when Toyogasmatics try and defend the most dishonest manufacturer on the planet I have a real problem. The purposeful manipulation of the recall process, untruth in advertising and very little thought to “moral content” gets me and the sheep follow beacause they owned a 1979 Camry and it went for 150,000 miles.
Silvercreek is Fords proving ground test. Take a look at all F150 competitors and tell me which one does the worst. It is also on Yahoo’s front page from time to time with Mike Rowe.
Hey Fill F150 iand Silverado’s still outsell the Tundra by how much Fill?