Toyota's Watanabe In Crisis Mode After N.a. Loss

[fbachman]

As much distaste as I have for Toyota, THIS signals how bad it really is getting. They will still be profitable.... but

 

Hans Greimel

Automotive News

November 6, 2008 - 7:21 am ET

UPDATED: 11/6/08 12:12 p.m. EST

 

 

 

 

TOKYO -- The once mighty Toyota profit machine tumbled to a rare loss in North America, sending President Katsuaki Watanabe into crisis mode as he slashed sales and profit predictions.

 

Toyota Motor Corp. now expects global operating profit to plummet 73.6 percent to ¥600.0 billion, or $5.83 billion in the fiscal year ending March 31.

 

 

Just three months ago, Toyota had forecast operating profit to drop a comparatively modest 29.5 percent to $15.5 billion. The new goal would be Toyota's lowest operating profit since the company began calculating in U.S. accounting standards in 1998.

 

The U.S. market meltdown has upended Toyota's profit picture.

 

North America slumped to a $335.9 million operating loss in the April-September fiscal first half. Sales there slid 9.4 percent to 1.36 million vehicles in the period.

 

"This is an unprecedented situation," Executive Vice President Mitsuo Kinoshita said here today while delivering financial results. "Every week, the environment gets worse."

 

Kinoshita said things won't improve until late 2009 at the earliest.

 

Watanabe is chairman of a committee charged with keeping Toyota in the black in 2009 and 2010. Details are scant, but the committee will review everything from pricing to the product pipeline.

 

Aside from shriveling U.S. demand, Toyota also is getting hit by a rising yen. The yen has gained nearly 12 percent against the dollar since August, reducing the value of dollar-denominated sales when converted back into Toyota's home currency.

 

Looking ahead, Toyota also slashed its global sales target. It now expects sales to fall 7.6 percent to 8.24 million units this fiscal year. It had earlier forecast 8.74 million vehicles.

 

Net income also will fall significantly, Toyota warned. The new outlook calls for a 68.0 percent drop to $5.34 billion for the year. That is less than half Toyota's earlier forecast for net income of $11.7 billion.

[C & A s Dad]

This dismal report has just ruined my day.

 

 

 

 

 

NOT

 

 

I am sure the overwhelming sales of the Blundra will pull them right out of this slump.

[asilverblazer]

My heart bleeds red kool-aid.

[tobias]

My heart bleeds red kool-aid.

[2000DV4.8]

GM reports today. We already know sales were down 45% last month. The big 3 are in Washington today saying they might not make it through the end of the year due to cash burn.

 

Yes, this report from Toy should send concern us greatly. If the strong are weakening fast, then where does that leave the already weak players in the game? We might be on our own for warranty repairs sooner then we think.

 

Bull f*cking horse shit.

 

Do you have NOTHING better to do than troll on a f*cking gm forum? Get a life dude.

[VMax2007]

GM reports today. We already know sales were down 45% last month. The big 3 are in Washington today saying they might not make it through the end of the year due to cash burn.

 

Yes, this report from Toy should send concern us greatly. If the strong are weakening fast, then where does that leave the already weak players in the game? We might be on our own for warranty repairs sooner then we think.

 

Bull f*cking horse shit.

 

Do you have NOTHING better to do than troll on a f*cking gm forum? Get a life dude.

 

 

+1 "Trillion"

[iscsidude]

I see GM stock is on hold awaiting news pending.

 

Holds breath....

[bigdogxx]

GM reports today. We already know sales were down 45% last month. The big 3 are in Washington today saying they might not make it through the end of the year due to cash burn.

 

Yes, this report from Toy should send concern us greatly. If the strong are weakening fast, then where does that leave the already weak players in the game? We might be on our own for warranty repairs sooner then we think.

 

Bull f*cking horse shit.

 

Do you have NOTHING better to do than troll on a f*cking gm forum? Get a life dude.

 

 

 

Man someone needs a , what the hell did Won say that was so trollish? This is known as fact that they are in Washington applying for the sorry we missed managed our business, please pay for us loan. All American auto companies are pretty much hanging on by a thread at this time and are closer then most think to failing. I could dig in my pocket for the change i bought my coffee with this morning and buy a share of gm if i wanted to, nothing else needs to be said.

 

Gm at the very least has a slight glimmer of hope if they can get the volt as a viable contender for a alternative fuel vehicle, if that fails i see nothing in their arsenal that will let them compete in the next 5 years time.

[VMax2007]

Man someone needs a , what the hell did Won say that was so trollish? This is known as fact that they are in Washington applying for the sorry we missed managed our business, please pay for us loan. All American auto companies are pretty much hanging on by a thread at this time and are closer then most think to failing. I could dig in my pocket for the change i bought my coffee with this morning and buy a share of gm if i wanted to, nothing else needs to be said.

 

yeah, that is the point. Is it already a "known fact" that the big 3 are hurting. Bringing it up over and over again and exaggerating the hell out of it is getting REALLY sickening.

 

[slomo007]

Dan calm down man, the financial results were just released a few seconds ago and they are absolutely horrible.

 

http://biz.yahoo.com/prnews/081107/clf042.html?.v=101

[VMax2007]

Gm at the very least has a slight glimmer of hope if they can get the volt as a viable contender for a alternative fuel vehicle, if that fails i see nothing in their arsenal that will let them compete in the next 5 years time.

 

More complete

 

How many vehicles does Toyota make that get 30+ MPG Hwy mileage?

 

GM currently has 18.

 

http://www.gm.com/vehicles/results.jsp?fue...t=fuel&cs=1

[bigdogxx]

Gm at the very least has a slight glimmer of hope if they can get the volt as a viable contender for a alternative fuel vehicle, if that fails i see nothing in their arsenal that will let them compete in the next 5 years time.

 

More complete

 

How many vehicles does Toyota make that get 30+ MPG Hwy mileage?

 

GM currently has 18.

 

http://www.gm.com/vehicles/results.jsp?fue...t=fuel&cs=1

 

 

Im talking about something that could possibly turn the company completely around, making a nice caddy or nice pickup is only going to take a company so far. Create something that no other company has like a real viable electric car that is not only affordable but practical and you own the auto industry for years to come! I dont see why people want to get upset at me, i put my money were my mouth was and spent 30 grand on a gm product. Obviously most americans have not and we could possible see a very bad result because of it, i think the time of sticking our heads in the sand and closing our eyes and pretending everything is fine has got to end!

[VMax2007]

Im talking about something that could possibly turn the company completely around, making a nice caddy or nice pickup is only going to take a company so far. Create something that no other company has like a real viable electric car that is not only affordable but practical and you own the auto industry for years to come! I dont see why people want to get upset at me, i put my money were my mouth was and spent 30 grand on a gm product. Obviously most americans have not and we could possible see a very bad result because of it, i think the time of sticking our heads in the sand and closing our eyes and pretending everything is fine has got to end!

 

 

You mean like the Volt? They are working on it.....

 

GM's product offerings are not the problem. The shitty economy and the leftover perception they created for themselves in the 80's and early 90's are. Oh, and the UAW isn't helping either.

 

GM's quality and product offerings are just as good as anyone's else's currently.

[csheatz]

Who cares about 30mpg now gas is back to $2.00/gallon! we could all drive around in 3rd gear in 4hi and still save money on gas!

 

But really..... It doesnt really matter who makes more 30+mpg cars, people have to have the $$$$ to spend on a new car, and if they have the $$$$ they have to feel good about spending it. When we have unsecurity in the economy poeple tend to hold on to what little they may have. spending is down because not a lot of people have the money to spend! For example take the person that is maybe 18-23 and might work part time or even full time making about 20K a year, they might live at home with mom and dad, or rent something with room mates so they have the $$$$ to burn. they might have bought or leased a new silverado every 2-3 years, while now they might think about not wanting to have payments so they buying is down! Or they choose the used truck and have smaller payments. But you look at the person making 200k+ a year, if they want the new truck they go get it, money is not thought of in the same mindset when it comes to laying down $500/month. I make more then 20K/year but i dont come close to 200K and I thought I would get a new truck in 2009 when we purchased this one in 06, as it looks now I am paid off in a little over a year with only 34,000 miles, I am going to save the payment and drive it for another 100,000 miles or more! then maybe look at a new one, or used in about 5-7 years! Not worth spending the money just to say we have a "new" truck.

[BlackSilver]

If Toyota is in trouble, then we're all in trouble.

 

Maybe not necessarily in trucks, but overall they are considered among the very best automotive manufacturers on the planet. If they can't succeed then neither can our "big 3.

 

Here is a quote from GM's earnings report (in their own words):

 

Even if GM implements the planned operating actions that are substantially within its control, GM's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business.

 

Translation: "We may not have enough cash during the rest of this year to keep the doors open any more." Is that graphic enough for ya!