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Toyota to slash global production capacity by 10 percent

08/25/2009, 5:20 PM

By Drew Johnson

In a bid to return to profitability by the 2010 fiscal year, Toyota will reportedly slash its global production capacity by 10 percent. Toyota will make the capacity cuts in the United State, United Kingdom and Japan, resulting in a 1 million unit capacity decrease.

Toyota currently has a global production capacity surplus, leading to several underutilized plants. Toyota’s factories typically need to operate at about 70 percent capacity in order to break even, meaning anything under that is actually losing the Japanese automaker money.

Toyota’s New United Motor Manufacturing Inc. factory – a former joint-venture plant with General Motors – will be the first plant to shut down under the plan, followed by facilities in the UK and Japan, according to Japan’s Nikkei business daily.

Earlier this year Toyota improved its yearly financial forecast and hopes to turn an operating profit by the 2010 fiscal year.

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08/25, 5:24 PM

posted by:

DrFill

The most efficient automaker will refine it’s craft this year
And reap the profits next year
DrFill

08/25, 5:41 PM

posted by:

A4

Thanks 1115.

08/25, 5:43 PM

posted by:

Genesis101

good bye toyota! turn your crown over to hyundai please :)

08/25, 5:53 PM

posted by:

carstuff

This is going to cost Toyota big time. They just spent many billions to build all this capacity up and now will spend billions to close it down.

08/25, 5:53 PM

posted by:

carstuff

Good news is that is sounds like US plants will not be the ones primarily cut.

08/25, 6:04 PM

posted by:

DrFill

Toyota will ramp these factories back up when normal buying levels return

Genesis
Hyundai will definitely need a lot of help getting any type of crown
They’ll need divine intervention
DrFill

08/25, 6:05 PM

posted by:

DrFill

A4
1115 was a good Apprentice
Tail doesn’t wag the dog
Had to send him away
DrFill

08/25, 6:14 PM

posted by:

beatusmongous

^ That was funny. ^

08/25, 6:35 PM

posted by:

Genesis101

toyota shall fail…….. hyundai shall succeed

08/25, 6:58 PM

posted by:

leftwingagenda

“Toyota will ramp these factories back up when normal buying levels return”

considering previous “normal” levels were based on a speculative investing/housing bubble that has since popped, we won’t see sales surpass 2005-2007 levels for many years…with various promotions from gm over the years the annualized rate of sales spiked at over 21 million vehicles per year…this year we’re lucky to pass 11 million or so…i’m guessing several years before that extra capacity is needed…

08/25, 7:05 PM

posted by:

Sector_15504

Same people going at it, different post…. sigh

Atleast toyota is starting to throttle back before they produce too many cars and cant sell them for whatever reason (bad economy, lump in sales, ect). Look at the big three…. they kept going and going and then when it was too late, realized they were producing too much…..

08/25, 8:07 PM

posted by:

CADDY-V

come on toyota 10% please. Give 100% and make eveyone happy.

08/25, 8:12 PM

posted by:

alsvw

THE TOWER IS FALLING, FASTER THEN WE THOUGHT.

cars that offer no fun, that are over priced will stop selling. toyota needs a make over in the next ten years. or they will be sinking fast. they already lost $8 billion this year. next year this will be even more of a loss. .

dr.filled in ass always talks about the 1990’s toyotas. they need to go back and make those types of cars. they will have to figure out a way to compete to make a profit against kia, hyundai, vw, and ford. they are blowing away toyota on making money and better products.

08/25, 8:49 PM

posted by:

carstuff

Lefty, when did the US ever get close to 21 million cars per year? Way off.

In ‘05, the peak, we almost hit 17 million, but not quite.

Once the economy starts to go we will see some large spikes to make up for all the non sales for 2 years. Probably hit 15 million. Will be a few years before we see 17 million again.

08/25, 8:55 PM

posted by:

DrFill

ALS
BTW, as our resident Hyundai expert…………..
Any reason why Hyundai sales continue to fall, year after year, if these cars are so incredibly great?
Any explanation?
DrFill

08/25, 8:55 PM

posted by:

carstuff

As a side note on Toyota dropping 10% of their capacity.

GM has taken 75% of the large SUV market this year. That has taken the sails out of Toyota’s foray into that segment. So that Texas Toyota plant is not being well utilized. GM has only one plant building the large SUVS (Arlington) and is ramping up production due to low stock levels.

Large SUVS sold over a million units in ‘04 and was half that in ‘08 and is at 233,000 this year so far. Seems to be a dieing segment (maybe 2 plants worth of total production).

08/25, 8:56 PM

posted by:

DrFill

Oops!
I think I just heard a toilet flush……….
DrFill

08/25, 9:09 PM

posted by:

alsvw

drfilled ass–

if you can manage to read something that actually has truth, try reading this article.
http://wot.motortrend.com/6544939/industry-news/hyundai-kia-passes-ford-as-worlds-fourth-largest-automaker/index.html

Toyota sales down %26 percent from last year. sorry, loser..

man, your like a child. very little thought involved in your posts. your actually getting boring repeating the same stuff over and over again. celica gt, supraghetto, blah blah blah. get up to date on some products.

08/25, 9:15 PM

posted by:

DrFill

I have facts
You avoid and deflect

So sales here (In the U.S.) are PLUMMETING
Selling LESS cars than you were selling here 5 years ago!
And you have no answer
Defeated already?
DrFill

08/25, 9:20 PM

posted by:

DrFill

Only a child would pound their chest over being in 4th place!
You can sell in the minor leagues, in the bush, where Toyota doesn’t fight for third world sales

But here, in the big leagues, against the world’s best, you struggle, and beg, and give away gas, and give away fleet sales, and STILL lose sales

I know why
Do you?
DrFill

08/25, 9:34 PM

posted by:

alsvw

you can’t admit to anything. even with actually numbers in your face. toyota thinks they were to big to fall. as did gm.

quality does not qualtity. toyota has been selling fleet cars for over 20 years. and they are cutting production by 10% now. or do you not believe what the company is telling you. gm, ford, hyundai, and kia are upping their production. because, they have some products that are made for segments other then 55 years and old. and toyota products are for older people. they are slow, soft, and boring. very very boring products.

08/25, 9:55 PM

posted by:

psiclone

Fill, you’re dodging the question whereas alsvw has provided information to support his position.

08/25, 10:43 PM

posted by:

fishsticks

@Carstuff

“Lefty, when did the US ever get close to 21 million cars per year? Way off” and backing up Leftwingagenda.

LWA was correct, we got to 21.7 million units (annualized) around Oct ‘01 after (nudging from Bush Administration) the 0% financing promotion by many automakers. Sales, in fact, skyrocketed from about a 16.1M unit pace to 21.7M unit pace (Sept 01′ to Oct ‘01) and everyone, including the official arbitrators of a recession, the National Bueareau of Economic Research declared the recession over Nov ‘01. Though the stock market and most of the general public saw Nov ‘01 until late ‘03 as really a jobless recovery. Auto sales in the subsequent 3 months actually dropped below trend to 16.0M units.

The C4C basically spikes demand by delay purchases this spring and pulls forward demand from this fall and will result in a return of sales to trend, especially averaging in the months on either side of C4C.

C4C, to me, was a failure in so many ways and benefited so few. Before you skewer me look at the unintended consequences of C4C, not the easily visible sales.

08/25, 11:09 PM

posted by:

The Stig

WTF, do they huddle every 15 minutes, break then issue a press release?

08/25, 11:21 PM

posted by:

DrFill

Psiclone
I remember asking him a question first, which he avoided
Beg to differ?

I remember congratulating him on being a distant fourth place
I’d give him a medal, if they gave medals for 4TH PLACE!

He should answer my question

I know what the answer is
I just want to here him say it
DrFill

08/25, 11:33 PM

posted by:

johnnycanuck

C’mon Doc, just admit it. Toyota makes their vehicles so damn well nobody has cause to replace them. That’s why they’re reducing capacity. I wonder what would happen if they let their quality slip just a little?

Oh, never mind. You and I both know that’s about as likely as dog dish hubcaps on the LF-A.

08/26, 12:09 AM

posted by:

DrFill

I miss your lame attempts at sarcasm, Johnny
I’d take it over petulance anyday
DrFill

08/26, 12:26 AM

posted by:

mayer_ray_nagin

Hyundai grows, Toyoturd declines. Such is life!

08/26, 12:47 AM

posted by:

johnnycanuck

Yeah, you’re right Doc. It just goes to prove anyone can be off their game from time to time.

08/26, 1:02 AM

posted by:

Sector_15504

same ****, different day!

Where has NMOFGM gone? Its been too quiet since he’s left.

08/26, 4:01 AM

posted by:

F50

If Toyota falls, I think Ford will be at the top. Thats just my opinion, well once they fix their lineup properly(Kill the Crown Vic’s, etc.). or Honda.

08/26, 8:42 AM

posted by:

carstuff

Can you guys post the 2001 numbers link? I am not getting those kind of results.

“The year 2001 was a fantastic year for car sales in the U.S. Manufacturers had their second best year ever in terms of how many vehicles were sold – over 17 million vehicles total.

At the same time, carmakers lost millions, even billions of dollars. ”

Maybe you are talking about a one month time period?

08/26, 9:23 AM

posted by:

sj79

“Toyota will ramp these factories back up when normal buying levels return”

No, they are CLOSING factories. NOt IDLING factories. You understand the difference?

Hyundai’s US sales are going up to record levels. Toyota peaked in 2007 in the US and wont get back to those sales anytime soon. Hyundai has outsold Nissan a few times this year which has never happened before.

08/26, 11:23 AM

posted by:

bdizzlefizzle

carstuff, it wasn’t that 2001 hit 21.7m vehicles, it was that it touched an annualized rate of 21.7 in October.

You guys are such children. You’re all arguing off no factrs of misinterpretation. When someone rare soul provides reality, you either ignore them or flame them rather than actually addressing the facts. Too funny.

Love whoever said Hyundai sales are down year after year. That’s not only untrue, but basically the inverse or reality. In the US, The Hyundai Kia Group was the only one to post a gain YTD. Subie is close behind.

What everyone is missing is that this is a GLOBAL issue, not about the US market. You’ll all arguing about the US, but that’s not the only car market. Toyota is big in China, Japan, and many other markets. The US is important, but this is a global issue.

Also, has no one noticed that 10% cuts = 1m units means they make 10m cars a year? Declining or not, that’s a profound amount of production of very expensive items. If you think you could run a business that big with no hiccups in a horrible financial environment across the world, then you should start a car company.

08/26, 1:26 PM

posted by:

cshannon53

This is the third or fourth comment section that has been destroyed by endless bickering. I actually signed up so that I can tell all parties that they are being absolutely ridiculous. Not only does it detract from the overall appeal of the site, but it makes you look like retarded. For the most part, your (collective) argument skills are abismal. Each post attacks the previous post with needless repotition. Most of the time, there isnt even a need for arguement due to most of the information provided is opinion-based. Then you compound things even more by attacking the commenter more than the statements provided. You throw in endless amounts of needling (which is just a way to make the other person angrier – thus muting their point because they speak in frustration rather than logics). You end your statements with rhetorical questions, or open ended questions – which in argument standpoints is lame (example “When will we give our senior citizens the respect they desrve?” clearly the only way to answer that is NOW). There are multiple cases of failure to state – which is constant attacking so that you never really have to answer anything. You make arguments over future events that nobody has control over. And half the time you talk so much gibberish, it hurts my head.

I dont think I need to mention WHO is partaking in these activities, but next time there is a giant arguement oveer Hyundai vs Toyota or if a car looks good or bad. Just state what you think and be done with it. The nonsense really detracts from the community aspect of this site.

08/26, 3:11 PM

posted by:

2WheeledSpeed

cshannon53 you think this is bad? The arguments on this thread are tame by LLN standards. I guess you weren’t on this site when 1115 was around, the arguments could go on for hundreds of posts and could get pretty nasty.

Bickering, opinions presented as fact, endless logical fallacies, insults, it’s all standard LLN material. Sorry… All you can do is just try to ignore the flamers and fanboys and get along as best you can if you like this site.

08/26, 3:33 PM

posted by:

beatusmongous

^ Some of those guys are sadly funny, too. ^

08/26, 3:43 PM

posted by:

2WheeledSpeed

Oh I started to look forward to reading 1115 beatus! He was a riot, I kinda miss his particular brand of crazy.

08/26, 7:37 PM

posted by:

DrFill

Hyundai brand sales are falling
That’s all that matters
14% last year
Another 5 % this year
They haven’t sold this few Hyundais since 2004
And the have 3 more models than they did in ‘04

I don’t see anything to thump your chest about
Looks like Kia got all the brains of the outfit
Hyundai got the biscuit pants!
DrFill

08/26, 9:13 PM

posted by:

alsvw

dr.filled ass

your like fox news, after stating something over and over again you start to believe your own eyes.

http://wot.motortrend.com/6544939/industry-news/hyundai-kia-passes-ford-as-worlds-fourth-largest-automaker/index.html

08/26, 9:21 PM

posted by:

DrFill

Didn’t I congratulate you yesterday for being 4th-rate?
DrFill

08/26, 9:34 PM

posted by:

asb81689

I just had a horrible day, I got into a car accident, but the only good part was I hit a new Corolla, that made me happy.
(Just kidding)

Honestly, I believe both companies produce great cars, I would prefer a new Hyundai over a Toyota, or even say a Kia over a Scion. I’ve own a Ford, Hyundai, Toyota, and two Mazdas, the best car out of all of them would be the Hyundai as far as reliability (04 Sonata) it’s too early to tell with one of the Mazdas. I bought the Sonata new, and it has had no problems compared to the Ford and Toyota. I can’t get rid of the Hyundai because it is a great car, even at 194K miles.

After owning a Hyundai and having this kind of experience I would not give it a second thought about buying another, there just isn’t anything that fits me needs from them atm.

I’ve bought/owned a
2001 Ford Taurus
2000 Mazda Miata
2004 Hyundai Sonata
2010 Mazdaspeed3

08/26, 9:36 PM

posted by:

asb81689

^ Forgot about the Toyota 1998

08/26, 10:34 PM

posted by:

DrFill

Asb
So your the one!
I’ve heard about people like you
Just never actually seen them in the light of day

Now can you tell me where the Lock Ness monster is?
DrFill

08/26, 11:17 PM

posted by:

NickelDime

Toyota … let’s see … corolla = alive because of clunkers. Camry … dated and resting on its laurels. Venza … narrow market, lots of other options. Highlander & Prius = bright spots, tho Prius success tied to gas prices. Yaris = dud.

@leftwingagenda

great post and excellent point.

08/27, 12:23 AM

posted by:

beatusmongous

“So you’re the one!” is the punch line to the joke question: “What’s the difference between toilet paper and a shower curtain?”

08/27, 2:13 AM

posted by:

asb81689

DrFill

Some sources say it’s located in the Scottish Highlands

http://en.wikipedia.org/wiki/Loch_ness

08/29, 12:21 PM

posted by:

psiclone

alsvw, I think you mean MSNBC.

 
 
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