Toyota suffers biggest loss in 72 years

[Coventina]

Source: The Telegraph

Toyota, the world’s largest car manufacturer, has announced the biggest loss in its 72-year history as the economic downturn continues to take its toll on the automotive industry.

The manufacturer, which has plants in 27 countries and regions around the world, revealed a net loss of 437bn yen (£3bn) for the financial year ending 2009. Last year the company generated a net income of 1.72 trillion yen.

Total sales for the period came to 7.57m units, a drop of 1.34m units on last year. The company estimates sales will fall by another 1.06m units in 2010.

The dismal results echo the troubles being felt in the auto manufacturing industry worldwide, while the company also blamed the rising value of the yen in relation to other currencies.



Read more: http://www.telegraph.co.uk/finance/newsbysector/transport/5296863/Toyota-suffers-biggest-loss-in-72-years.html

[diane in sf]

1. I'm still waiting for my plug-in Prius, or plug-in anything...

[all.of.me]

6. Unless that plug-in is fueled by solar, it's fueled by coal. nt

[Dont_Bogart_the_Pretzel]

15. Same here

IF we do upgrade our 2008 Prius to 2010, it will cost a lot for an solar system. I'm looking been thinking about going solar for a while but it takes a lot of money

[diane in sf]

26. It is still cleaner for the environment if it is charged by coal, but we don't generate

too much power with coal here in northern California.

[cambie]

32. Wait no longer

Several companies are making plug-in kits for Prius, typically a 5kWh Lithium battery that goes in place of the spare tire. That takes advantage of electrical power when you have it and gives you a fully capable car with good mileage when you don't. What is there not to like?

[Lorien]

45. Yep. Even without the plug in feature, Prius sales must be keeping

Toyota going. I'm absolutely amazed at the increasing number that I see on the roads down here in Florida (which is an ideal environment for a hybrid).Just three years ago a Prius was a rare sight, but now they are nearly as ubiquitous as the Camry. I certainly plan on purchasing one as my next vehicle! :bounce:

[PassingFair]

2. The UNIONS must have bled them dry...

:sarcasm:

[mbperrin]

5. Yes, and their pension holders! AND they must not know how to

design or build a quality vehicle, either!

Waiting for the Japan, Inc, supporters and Detroit bashers now.

How about now?










How about now?

[PassingFair]

8. If you fear for your job, or you don't HAVE a job....

you can't/won't buy a car.

The only businesses doing well
here in Michigan are the auto PARTS
stores.

The dealerships are going broke
while new repair shops are springing
up all over.

Mechanics are in demand.

:hi:

[jody]

3. If 1945 was better, then Toyota really had a bad, bad year. n/t

[HopeHoops]

4. Japan made the original biofuel cars...

RICE BURNERS!

It is a late 70's bumper sticker: "Out of work? Hungry? Eat your RICE BURNER!"

Buy American!

With cars, that's a bit of a challenge these days, but it wasn't in the late 70's. You have to research the vehicle now, but Ford products are mostly US components. They have a few noted exceptions (the 91 Capri only had 9% domestic content). The so called "US Made" Japanese cars are questionable when they ship in fully assembled engines and transmissions to be installed in US plants.

If you walk into a WalMart for any reason other than to take a piss or a dump, you're probably hurting the US economy. Think about it next time.

[fujiyama]

7. Been a tough year to sell cars

It's hard to sell a car to people that don't have jobs and can't afford it.

Plus, I've noticed Toyota's cars are sort of overpriced anyways. Regardless I wouldn't worry about them going bankrupt anytime soon so for whatever financial difficulties they have, they're not in the same situation as GM and Chrysler. They have a lot more cash on hand and not nearly the amount of debt. So you can't compare them to the others.

[FarCenter]

9. Yen strength against the dollar accounts for more than the amount they lost

Over the last year, the yen strengthened against the dollar. So they have had to contend with both falling sales and for the fact that cars sold for dollars generate less income in yen. The decrease in sales by itself would not have pushed them into the red.

They have a nice clean balance sheet -- no big lump sum payments to anyone or significant refunding of near-term debt.

They can stand this rate of cash burn for years if they have to. Their forward 12 month predictions are for about a 15% reduction in sales compared with the last 12 months. It doesn't sound like they are planning on the US market recovering.

[Romulox]

24. What a lame excuse!

:hi:

[fujiyama]

34. It's not really an excuse

It's the truth, more or less.

Now, Toyota made some critical mistakes over the last several years which have cost them considerably - mainly launching several SUVs and a full size Tundra pick-up truck just as gas prices were rising.

But the rising yen and a collapsing North American market has of course hurt Toyota. However, their debt levels are much lower than US automakers so don't expect them going bankrupt in the near future.

[michreject]

10. Yea!!!

:applause: :applause:

[Renew Deal]

11. WTF is your problem?

You like watching people suffer? I have a feeling you are reaping what you sow.

[michreject]

13. I support UNION made products

[JonLP24]

16. I like Toyota because they have more fuel efficient cars

They are doing more then GM or Ford to help save the environment. I do have no problem with the workers that produce the cars but some people are unfortanate enough to work for a non-union company like me so any layoffs is bad for people that have to support their families.

[michreject]

17. Well so much for that

http://www.chevrolet.com/fuelefficiency/

Making a difference in our environment is as simple as driving a more fuel-efficient vehicle. That's why Chevy offers more models than Toyota or Honda with an EPA estimated 30 MPG highway or better. Select models of Aveo Sedan, Aveo5, Cobalt, HHR and Malibu all fall into the 30 MPG highway or better club.

[LeftyMom]

18. They're counting the Aveo as two models there. And it's Korean,

and only added to their fleet to meet fuel economy requirements. :shrug:

If you have to throw in one Kia and call it two to say Ford's fleet has good fuel economy, maybe they don't have good fuel economy? :shrug:

[michreject]

19. I never mentioned the Aveo

I was more drawn to this.

Cobalt XFE offers best-in-class standard highway fuel economy with an EPA estimated 37 MPG highway. That's better than Toyota Corolla and Honda Civic.(2)


Those are the flagships of their respective companies.

[LeftyMom]

20. Your quote did. Twice.

Reviews say the Cobalt is unreliable (a real problem in a commuter car...) that the interior is spartan, and that it lacks safety features. It's rated poorly for side impacts. I assume the resale is typical for small domestics (ie that you can't give one away.)

FWIW, the Cobalt manages decent fuel economy mostly by being smaller than most of the competition. In any case, shouldn't the class, if it includes the Civic, also include the Civic Hybrid? In which case, the Cobalt doesn't come close to having the best mileage in the class.

[michreject]

21. Let me se if I got this right.

You want to discount one combustion, gas powered car because you think it's junk and then introduce a hybrid to compare in a different class.

Nothing like to skewering the comparisons to get your desired results. Way to go.

[LeftyMom]

22. It's the same class- they're the same size, body style and and price range.

And I don't have an opinion on it one, the people who are paid to review cars (or crash test them) do. I was just repeating what they say about the thing.

[Juneboarder]

30. The AVEO

sucks... you can go through one Toyota Camry or one Honda Civic while someone else goes through three Aveos. Sorry, but American cars are continuing to spiral down and why by an American car when they're just going to go bankrupt or move their entire company to another country. It's obvious these union employers are more in it to line their pockets rather than look out for its employees and our country (that is bailing their a$$e$ out).

Sorry, but I have been buying Toyota's or Honda's my whole life and definitely not going to change now.

[blue_onyx]

33. If you've been buying Toyotas and Hondas your whole life

than how can you judge US vehicles? It's pretty difficult to judge something you've never tried. BTW, US DON'T suck and are not spiraling downward.

[Juneboarder]

39. Yes, US Cars suck

and I've experienced many failed US manufactured cars throughout my youth that my parents drove. Thunderbird, Jeep Wrangler, Jeep Cherokee, Cadillac, should I keep listing?

[blue_onyx]

43. No, they don't

I love that you're listing vehicles your parents drove when you were a kid. You have fun living in the past because the vehicles the US automakers produce now are just as good, if not better than, the foreign competition.

[fujiyama]

36. I'm not even sure if the Aveo is manufactured in the US

It's also known as the Daewoo Kalo, which is manufactured in South Korea.

[DainBramaged]

42. So, are you aginst Unions and the products they make?

[DainBramaged]

40. Bullshit, do some research before you spout praises for them

except for the hybrid, they aren't any more efficient than GM, FORD, or CHRYSLER. Find the truth here

http://www.fueleconomy.gov/Feg/findacar.htm

[fujiyama]

35. You may find cheering for their losses enjoyable

but it's shortsighted especially with Chrysler and GM (likely) going bankrupt.

Why, you may ask.

Keep in mind that American suppliers will be relying more heavily on Japanese OEMs purchasing their products at this point with domestic automakers cutting orders (I know Toyota used to use several domestic suppliers for some parts) - and that several Japanese suppliers also have a presence in the Metro Detroit area, such as Denso and Yazaki among others. A collapsing Toyota does none of them any good.

The management at Toyota also made it clear that they didn't agree with Southern Senators during the bailout. It's a close knight industry and Toyota's poor sales doesn't indicate better sales for domestic automakers. Note, even if Ford beat Toyota for one month, they are STILL selling a fraction of what they sold last year.

[Renew Deal]

12. Damned unions!

:silly:

[michreject]

14. Isn't Toyota non union

I do believe so.

[ingac70]

23. Some Toyota's are union made.

http://www.uaw.org/uawmade/auto/2009/index.cfm

[Romulox]

25. That list is inaccurate. nt

[Greyskye]

28. The United Auto Workers list of which cars are made by Union workers is wrong?

OK, if you say so.

[fujiyama]

37. Do you have a more accurate list than that issued by the UAW?

[Earth Bound Misfit]

27. Must be those FV@%ING GREEDY....

NON-Union employees.

:evilgrin:

[Hav]

29. .

First, the glee of some here is unnecessary. I guess GM would kill for these numbers. Almost all automakers suffer in these times, yet they are still in different situations. That one has to go back decades for a similar loss for Toyota should tell you something. Secondly, whether union made or not, they are still giving jobs to thousands of Americans. How it would help anyone if another big car company goes down is a mystery to me.

[fujiyama]

38. Well said

Shortsighted schadenfreude doesn't help anyone.

It's a close knight industry that too where American and Japanese automakers share common suppliers. If Toyota is hurting it also means they'll be cutting orders from some American suppliers. Likewise, Japanese suppliers located in the US employ Americans as well...

[Romulox]

44. I've never seen you chastise anyone for anti-Big 3 sentiment on these boards. Strange.

If not fairly transparent. :hi:

[blue_onyx]

41. The glee of some have expressed toward....

GM/Chrysler problems is unnecessary too. DU is full of people who not only didn't want the government to assist the auto companies but wanted to see them liquidated.

[NickB79]

31. So Toyota saw a net loss of $4.4 billion in 2008.

How many billions has GM burned through in the past few MONTHS?

http://www.freep.com/article/20090508/BUSINESS01/905080415/1210/BUSINESS/GM+loss+shows+risk+of+a+drawn-out+bankruptcy

$10.2 billion in operating costs, and $6 billion in losses, since January 2009. Ouch.