Toyota projects first operating loss since 1941

[KCALB SIRAY]

NAGOYA, Japan (AP) -- Toyota Motor Corp. projected its first-ever operating loss since it began such reports, acknowledging Monday that its nine-year stretch of global vehicle-sales growth had stalled.

Crashing auto demand, especially in its key U.S. market, and the profit erosion from a surging yen proved too much for Japan's top automaker, which had been booming on the success of its fuel-efficient models, incluading the Camry sedan and Prius gas-electric hybrid.

Gloom dominated the annual news conference by Toyota's president, who in recent years had outlined ambitious expansion plans. This year, Toyota President Katsuaki Watanabe even refused to give a worldwide vehicle sales goal for 2009.

"The tough times are hitting us far faster, wider and deeper than expected," he told reporters at Toyota's Nagoya office. "This is an unprecedented crisis requiring urgent action."

Watanabe also blamed the strong yen, which has risen to 13-year highs against the dollar to about 90 yen recently.

Toyota lowered its net profit forecast to just 50 billion yen ($555 million) for the year through March 2009 -- a tiny fraction of the 1.7 trillion yen it earned the previous fiscal year.

Toyota expects to lose money on an operating basis of 150 billion yen ($1.66 billion) for the fiscal year ending March 2009. Toyota has never reported an operating loss since it began giving such figures in 1941. The only such loss it has had is an internal calculation for the year ending March 1938, a year after the company was founded.

Full Story Here
http://biz.yahoo.com/ap/081222/as_japan_toyota.html

[auxmike]

I saw this this morn. I think we're ok. American makers are'nt though. Think, would you buy from a dying brand? How careful will the upset or angry assy line workers be in Detroit? Also,some dealerships are going bye bye. That means longer drives to find some place that will do warr. work.
Toyota dealers are quite abundant by me!

[KCALB SIRAY]

I think Toyota is doing very well with how they are handling this issue. Moving towards the smaller line and economy style vehicles is a great move. Granted, GM does very well overseas, they need to move in the same direction and I just don't see that direction from what I have read about their plans.

[ChinoCharles]

I'm starting to feel guilty for buying foreign.

[KCALB SIRAY]

Originally Posted by ChinoCharles

I'm starting to feel guilty for buying foreign.

Noooooo, half the U.S. cars have foreign parts anyway, lol

[ChinoCharles]

Hahaha, I know I know... but still, my next car might have to be a Ford just because. -gulp- I hope they fix themselves before it comes to that! LOL

[KCALB SIRAY]

With the way Toyota is moving, I'd also expect an increase in price of about 2 to 5 percent over the next year or two. Expect to see more soy based products like the foam used in our cars seats and others in the near future as it will become more commonplace

[puetato89]

im kinda mad about the bail out..... american cars arent what they used to be... the new hummer for example... thats all im gonna say....

[ChinoCharles]

It had to be done.

[puetato89]

i guess.... but there are so many stores own around here that arent a franchise that arent getting any business and im pretty sure they will never get a bailout

[ChinoCharles]

Yeah, but they aren't part of a massive industrial pyramid scheme. Their loss.

... wait a second, haha.

[puetato89]

true... but that makes it even more of an unfair balance

[ChinoCharles]

I know, I'm kidding.

At this point I'm one bank collapse from being a commy.

[puetato89]

:-(.... that sux...btw (i want a bailout)

[ChinoCharles]

We got one. His name is Brian.

[puetato89]

lol....

[TinyGiant]

the bailout shows how little faith the government has in the free market it supposedly supports...

[TinyGiant]

i thought that was pretty pathetic.. hmm.. less pay and keep your job?... or no job and no pay.. lol