Like the Detroit 3, Toyota is also hurting from the slowing economy and record-high gas prices. The world’s second biggest automaker told reporters today the automaker will find it difficult to sell more than the 2.62 million vehicles it moved in 2007 this year. Late last year, the automaker announced it wants to sell about 20,000 more vehicles Stateside in 2008, and boost global sales by 5 percent.
A shareholder meeting today saw Executive VP Tokuichi Uranishi make the announcement, as per Automotive News. The projected 9.85 million vehicle sales target, representing a 5 percent jump over 2007 sales, is not likely to be met, despite a growing market in China and Russia, the VP said.
While the automaker will review the sales targets next month, it is already behind last year’s to-date numbers, selling 12.5 million vehicles in the U.S. compared to 16.3 in 2007. That number is the lowest it has been in decades, and Uranishi predicting the possibility of sales for the year falling to below 15 million.
The trend is industry-wide, with Ford recently announcing deep cuts to production, GM closing four truck plants and Chrysler announcing sales are down by 20 percent from last year’s levels.
06/24, 10:13 AM
posted by:
mayer_ray_nagin
I feel just as bad for Toyota as for the other makes.
BTW, if YTD sales numbers are running at 12.5M annualized and some stupid market analyst still thinks they are going to be near 15M for the year, that means in the second half they have to run at 17.5M to average out. 17.5M vehicles in a year is running very very hot, like in boom-economy hot, like in a 40%-increase-over-the-first-half hot, which will not even come close to happening. If they are at 12.5M annualized now, maybe you’ll get to 14.5M annualized in the second half given new models and some discounts, so the market will end up around 13.5M units moved in 2008. 13.8M tops, I’d say, given some unexpected good news, but unless they doctor figures it won’t break 14M at all. It’s simple math.
06/24, 10:15 AM
posted by:
corvette
heh.
06/24, 10:22 AM
posted by:
xyunya
I do not feel bad for Toyota. Last year was record year and not every company can execute record after record. They are still profitable and even if they loose some it is not dramatic in their case. Most of cars they sell they sell with profit. Last year they were extremely profitable, this year they will be either little profitable ot break even or even loose a little. Will cool them off and direct from expansion to repairing their quality image and products.
06/24, 10:42 AM
posted by:
shaver
Nearly every auto maker from VW to Hyundai to BMW announced big sales gains expectations in the last 18 months. They are all going to have to rethink their plans and expectations. All in all Toyota is in good position, marketing wise and flush with cash. I do think they have way to many models in the US then they need.
06/24, 11:48 AM
posted by:
400horseSS
Aint that a bitch, welcome to the club toyota.
06/24, 12:46 PM
posted by:
global_lightning
Toyota is paying the price for abandoning their core market: reliable, fuel-efficient vehicles. The Corolla is a POS compared to the competition, and the new Scions are trying to pass-off cheap lower-quality cars as ‘cool’. Toyota is the new GM.
06/24, 1:17 PM
posted by:
johnnycanuck
Taking
Out
Yankees
Our
True
Ambition
06/24, 3:27 PM
posted by:
howsmydriving
This story makes me weep. Perhaps if Toyota didn’t go out of its way to make its cars ugly, their sales would increase. Now, back to weeping….
06/24, 4:09 PM
posted by:
acura_el2000
HAHA this is what you get for trying to align your products with the big three’s
06/24, 10:09 PM
posted by:
gbb
If they planned on me ever buying one of those japcrappers, they are going to keep on missing their target.