Japan’s seemingly infallible Toyota Motor Corporation is expected to report it first-ever yearly operating loss, according to media reports released early Friday. For the fiscal year between March 2008 and March 2009, the automaker will likely post a small loss, caused by slumping sales in the latter half of the year.
The news comes from Japan’s Tokyo Shimbun newspaper, which says the automaker will hold a news conference on Monday to downgrade its financial outlook. In November, Toyota revised its profit forecast to to 550 billion yen in the current year, down from the 1.25 trillion yen projected previously. If these reports are accurate, Toyota will likely use the press conference to slash its outlook further, possibly into negative territory.
Perhaps most alarming fact is that Toyota reported a profit of 582.0 billion yen for the first half of 2008. That means the company would have to lose more than that amount in the second half of 2008 to result in a full-year loss. That could be particularly bad news for 2009’s outlook.
The news is further evidence that even the world’s strongest automakers are not immune to the potential damage of the global financial crisis. On Wednesday, Honda downgraded its projected operating profits for the second half of 2008 from 180 billion yen to 550 billion yen. The company also said it was forced to cancel its NSX program, and shelve the launch of Acura in Japan.
12/19, 3:27 AM
posted by:
WEKS
I guess it’s not THAT surprising, they have been investing heavily around the world.
12/19, 6:22 AM
posted by:
acura_el2000
Toyota deserves it for not producing a car with soul for the last 14 years
12/19, 7:12 AM
posted by:
DrFill
Acura
If Honda was capable enough to make a truck, they’d have the same issues
I wouldn’t pound my chest
Acura is marching to the nearest gravesite with their recent design philosophy
Everybody’s having trouble
There are no Prince Charmings right now
DrFill
12/19, 8:33 AM
posted by:
BradYourCarGuy
Maybe this will help the American public realize that the problems being faced by the automotive industry are bigger than just poor business practices by the US manufacturers. This is about a worldwide economic downturn and money tightening up. All the blame for lack of being competetive that has been heaped on the American makers lately can not explain the problems being faced by every maker worldwide.
12/19, 10:14 AM
posted by:
johnnycanuck
That’s OK. Toyota signed Robby Gordon the other day. Even if their cars aren’t exciting now they have a driver who is. I may have to go find a beater Camry and slap a number 7 on the side. I’ve already got the Jim Beam part covered.
12/19, 11:50 AM
posted by:
Gundy
Could this be due to the fact that they spent a billion or two on the new Tundra, a white elephant, literally, when it came out? Talk about a money-loser coming in at the wrong time. I guess nobody knew that the world would fall apart when they started redesigning that though.
12/19, 11:51 AM
posted by:
howsmydriving
Toyota should use this down time to revamp its approach to making ugly cars.
12/19, 12:31 PM
posted by:
shaver
This the only good news in weeks. My fears that Toyota would start buying everything in its wake are unwarranted. This next 2 years is going to see a lot of crazy unexpected teaming up and some old traditional names disappear or remarketed.
12/19, 12:40 PM
posted by:
yarddog82abn
What the BIGGEST AUTOMAKER IN THE …..WORLD….
Reporting a lost, Naaa…. LLN… you so funny…
And hay NO-ONE! and I mean NO-ONE! put a gun to Toyota’s Exec’s heads and told them to make the Tundra, the Tacoma was good enough, If Toyota groupie’s want to blame the Tundra that’s on them, if your to mush of a woos to play the game, well don’t play and stop your crying, because no one gives a damn if your but hurts, and as for Ridgeline, it’s not a truck it’s a Honda…
12/19, 2:58 PM
posted by:
Tripleoneflipper
1115 says, the Ridgeline is the best truck money can buy. It’s certainly better then anything from the Big 3. I mean at it, those gorgeous lines, fuel economy that matches the body on frame trucks. I can’t wait to see the front wheel drive minivan chassis Ridgeline Dually one day. Honda’s rule.
12/19, 6:48 PM
posted by:
wbent
You funny guy…….Honda truck very funny
12/19, 7:09 PM
posted by:
tripleonefive
thats 14 now wow you are a loser Keep going
12/19, 8:03 PM
posted by:
HalGameGuru
im confused, how did honda’s go down from 180 to 550?
I find it interesting they single out toyota as a “strong” manufacturer. GM’s losses aren’t as egregious?
Toyota sales have been riding on rebates and discounts for a while now, it was only a matter of time before it bit them like it did GM.
12/19, 8:21 PM
posted by:
jackjimturkey
Times are hard
12/19, 8:46 PM
posted by:
Kaizen
Yeah, the only difference is is that GM was hemorrhaging losses like this every month at a 16.5 SAAR before the housing bubble burst and the financiapoclypse. In comparison, Toyota lost this money in a bad economy with little access to consumer credit. Therefore, that’s why Toyota has been financing everything it’s able to. Toyota is cash rich. Tens of billions in cash.
For example, tell me why GM has 7 corporate jets in the US and Toyota has 1? Why does the UAW worker make twice as much as a Toyota line worker? Why does GM need 7 brands and 4000 dealers to sell the same volume that Toyota does with 3 brands and 1500 dealers? Mucht he same can be said for Honda.
Toyota has their faults like committing to build 2 suv and truck plants during the rise of oil prices. Or like developing a brand to sell to young people only to not update the product line. I can go on.
The point is that GM is being singled out for good reason. They’ve F-ed up. And Toyota is the example of what GM could be and should be doing right now. Selling at a 17% industry share, having made enough profits for the past 30 years to ride out the Great Depression II without firing any permanent staff, and developing a reputation for being a smart purchase.
Stop complaining.
12/19, 9:41 PM
posted by:
DrFill
Yarddog
Tundra is a big can o’ whuppass
Someday Ford will make a truck that can keep up with it
The Ford sells, but it’s lost 400k sales in the last 7 years
Nothing to be proud of over thur
DrFill
12/19, 11:15 PM
posted by:
moparsalesman
with all this in the media people are scared to death to buy ANYTHING. something has got to give. my point all along is that no manufacturer is immune to what is happening right now. i know things need a lot of improving with the d3 but this goes to show you that this is happening everywhere. same thing is happening in the uk right now. stay tuned one crappy year comin up