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Old 02-06-2009, 11:50 AM   #1
XDCX
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Default Toyota forecasts first annual loss since 1950

In an example of just how difficult the automotive environment is right now, Toyota announced they lost $1.8 Billion in the fourth quarter.

They cited falling sales in the U.S. and currency issues with the Yen as the primary reasons for the loss. Toyota expects a loss of $3.8 Billion for their fiscal year which ends this quarter - it will be the first annual loss for Toyota since 1950.

Here's a link to the news report: http://biz.yahoo.com/ap/090206/as_ja...ns_toyota.html
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Old 02-06-2009, 05:01 PM   #2
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Yeah, they got spanked. I also read that they're closing all of their production facilities 1 day at a time in Toyota City, Japan. Unemployment in Toyota City is the highest in the country and there's not a lot of hope for improvement in the future.

Currently, dealers are sitting with a lot of inventory on the ground of stuff that used to be hot. There's a glut of Matrix's everywhere and they're now carrying an $1100 rebate. They just restickered the Prius with a $1500 lower MSRP and added a rebate which drops the price about $2000 per car.

They were hot as a pistol when gas was $4 a gallon, now they're sitting outside collecting snow and nobody's even cracked a door on any of them.

Strange days.....
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Old 02-06-2009, 05:05 PM   #3
scooter
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Welcome to the party, Toyota....
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Old 02-07-2009, 11:39 AM   #4
dafuzz1956
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Originally Posted by scooter View Post
Welcome to the party, Toyota....
That should bring them down off of their hig horse of being bullet proof and better than the domestics.
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Old 02-07-2009, 01:04 PM   #5
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Quote:
Originally Posted by Snowrider View Post
Yeah, they got spanked. I also read that they're closing all of their production facilities 1 day at a time in Toyota City, Japan. Unemployment in Toyota City is the highest in the country and there's not a lot of hope for improvement in the future.

Currently, dealers are sitting with a lot of inventory on the ground of stuff that used to be hot. There's a glut of Matrix's everywhere and they're now carrying an $1100 rebate. They just restickered the Prius with a $1500 lower MSRP and added a rebate which drops the price about $2000 per car.

They were hot as a pistol when gas was $4 a gallon, now they're sitting outside collecting snow and nobody's even cracked a door on any of them.

Strange days.....
Great comments.

It will be interesting to see what decisions Toyota makes. I know when they closed their Tundra Plant in Texas for an inventory adjustment last year they continued to pay their employees and created training seminars and community work projects to keep them busy.

That's commendable, but it's not an easy decision to make when you're losing Billions and your stock price keeps falling.

Concerning their dealers, I sure see a lot of new facilities in my market area. I'm betting the rent factor has to be pretty big.
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