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Automotive News & Views Toyota in decline in 2009?
3833 messages, Last post on Dec 07, 2009 at 5:29 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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perception thing. It's a powerful sales force that shapes people's viewpoints on the value of a car brand. For years Kia and Hyundai have fought this, and it's improving and has been for the past 7 years. But there's still many that think they're looking at buying one of Malcom Bricklin's original Subie's when they look at Hyun/Kia's. Not really truth be that. And yes, I agree, the UAW could have a detrimental effect on Mitsu's Normal, IL, plant by striking. I'll have to do some more reading on the Normal situation and see if the droves are content or "up in arms." Hope they've remembered to apply their deodorant to those underarms, and also that they've avoided anti-perspirant in the mix, as it can cause inflamed underarms.  Look that one up if you're so inclined. Apparently the ingredients in anti-perspirant can have a "potentially" caustic affect on a person's body pH. Or lymph nodes. Hugh Lorrie, ya out there? Be sure and take all of that last nugget of information with a grain of sea salt.
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Replying to: steve_ (May 03, 2009 7:54 am) Toyota didn't plan for a downturn and consequent shrinkage, but they did plan so that if a downturn occurred they could react effectively to it. |
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How the stock holders react to Toyota planning to shrink enough to report its first loss in years? Now that we know such reduction in sales is intentional. Not reactive at all. Like intentionally asking for 2 billion dollars from the Japanese government? Great plan when you are intentionally reducing your production. It doesn't sound a bit like spin.  How did they miss the 38.4 percent sales loss so far this year?  http://en.ce.cn/World/Asia-Pacific/200903/04/t20090304_18386147.shtml
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Replying to: iluvmysephia1 (May 03, 2009 9:31 am) That about nails it - same car, different market, entirely different "common wisdom" about how good or bad the car or company is. |
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Replying to: boaz47 (May 03, 2009 1:09 pm) How did they miss the sales loss? What does this mean? If you mean 'How did they not see it?' No one saw it. Not a single company in the entire world in any field saw this economic disaster occuring within 12 months. Did you somehow have the impression that Toyota was omnicient? It's a human organization run by humans. If you mean 'How are they dealing with the the 38% downturn?' Like every other asset-intensive company in this field and steel and aluminum they are going to take losses because the assets that they must have in place to do business are not being used to full capacity. This means that they have too many fixed assets sitting idle until the market picks up again. So the company tries to cut costs and hold down unnecessary production in order to maintain the value of the product. If you mean 'How are they going to handle the financial losses of a sudden loss of 35% of it's sales revenue?' Then that's where Toyota has done much much better than any other maker because it's financial strength is the best of any ot them. It will take billions in losses which it can handle without bankrupting the company the when the market recovers it will begin to make billions in profits again. Life goes on.
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Replying to: steve_ (May 03, 2009 7:54 am) It also makes you wonder why Honda didn't feel the need to shrink so much, eh?! To the tune of 15% less shrinkage, with the result that Accord is back on the top of the sales heap last month?! Traded out of my '07 Toyota this weekend, bought a new Subaru. After a quarter of a century of buying Toyotas, I think I have bought my last new one. |
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Incentives are to go even higher effective ASAP: Toyota boosts incentives to counter 41% April drop May 2, 2009 - 12:24 am ET LOS ANGELES -- Toyota Division will respond to a 41.1 percent April slide in U.S. sales by pushing more leases, reducing interest rates and offering more consumer cash. This month the company also will begin to boost production of its best-selling car, the Camry, as well as the RAV4 SUV. The division lost 1.5 percentage points of market share for April, falling behind Ford Division and Chevrolet as the top-selling makes in the United States. Toyota's share stands at 13.7 percent after four months, down from 13.9 at the start of the year. "We're confident we will grow market share through 2009," Bob Carter, division general manager, said on a conference call to discuss April results. .....Carter said the promotion will focus primarily on leases in the East and interest rates as low as 0 percent in areas including the West and Midwest. Carter said there will be an "enhanced package" of incentives compared with what Toyota currently offers. He didn't elaborate. .....Combined sales of Toyota, Scion and Lexus models fell 41.9 percent in April, the steepest drop for Toyota Motor Sales U.S.A. Inc. this year. Industry sales dropped 34.3 percent for the year's smallest decline. On the plus side, Toyota doesn't have a ton of excess standing inventory: He said stocks for all Toyota models have been reduced to a 58-day supply and supplies of some have gotten too tight. And apparently dealers are asking for increased Camry and RAV4 production, which Toyota has promised to do. I can't remember if the RAV4 is still sourced from Japan, or if it comes from North America now. So look for even better deals on a new Toyota as they try to slow the decline.....
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Replying to: kdhspyder (May 03, 2009 2:59 pm) I would say the best of them is VW. They are not down as much in sales. In fact last I read they passed Toyota in World Wide sales first quarter 2009. They also showed a profit last year making them more financially sound than a company that lost money last year. Toyota suffered more than twice the percentage loss last year to VW in the USA. Partially due to the fact that VW has not spent a lot on the US market. They know where the big fish are in the Pond. It ain't the USA. Toyota expanded into big trucks when they should have offered their great small diesel trucks. Big Mistake IMO. How long will they keep their employees mowing the lawns and changing light bulbs? |
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I respect Toyota build quality more than VW, and purchasing a VW would to me be in the same category as purchasing a Fiat. Or, one of these:  Opel Ampura It's GM's European Volt. Not to seque too far away from your guys' important beeswax. 
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Replying to: nippononly (May 04, 2009 8:38 am) OTOH for the last 15 yrs as Toyota grew its BOF vehicle business it made far more profit than Honda or Nissan did because the BOF vehicles were far more profitable than Camry's and Corolla's or Accords and Civics. All those profitable years may have given it a larger umbrella in order to weather this storm. We will see. Most RAVs if not all of them are now made in Woodstock ON. Yes they weren't very agressive in pricing for the last two months, it looks like that's about to change even though certain models may be in very short supply soon. Yaris', Scions, 4Runners, FJ's, Solara's and Sequoias will likley be tough to impossible to find as we go into summer.
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