The entire industry is a mess

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From today's Automotive News email blast.......

TOKYO (Reuters) -- Toyota Motor Corp., the world's biggest automaker, forecast a much bigger-than-expected $8.6 billion loss for its current fiscal year and said it would sell about 1 million fewer vehicles as it scrambles to cut costs amid a severe market downturn.
The global crisis that has battered demand for cars and pushed U.S. rival Chrysler into bankruptcy has hit Toyota hard, reversing its rapid expansion into overcapacity almost overnight. Dozens of its factories stand half idle.
The Japanese giant made the forecast as it posted its first-ever annual consolidated operating loss, for the fiscal year that ended March 31, after a record profit the year before.
In the January-March fourth quarter, Toyota booked a $6.9 billion loss, in line with consensus estimates, and cut its annual dividend nearly 30 percent -- the first cut since at least 1994, when it changed its reporting period.
While the entire industry is caught in the slump and seeking to offload cars piled up in stockyards, Toyota has been especially vulnerable due to its exposure to the United States and Japan, where sales have plunged to multi-decade lows.
Even in China, Toyota has bucked the market's rise with a fall so far this year.
"Toyota's outlook was worse than I'd expected. The company expects a really tough time for the first six months," said Naoki Fujiwara, a fund manager at Shinkin Asset Management. "I expect the bottom for the auto industry is the April-June period, followed by a slow recovery."
 
Too many countries chasing US buxks,the fastest way to get a lot of it is build a car industry.At 17 million the market was/is jammed full .
Every new plant built anywhere means a plant somewhere else is redundant.
Chrysler and GM will bare the brunt almost 100%.
Even wages will follow to approx. the avg. of world wide industrial wage,sucks if your cost of living is higher than average.
 
Some time starting in the 50s and completing with the rise of the Japanese carmakers in the 80s, cars turned from being "durable goods" to use-once-and-throw-away fashion statements. That's fine so long as consumers can continue to buy new ones every 2-5 years. But when the economy gets tight and people realize, "duh, I don't HAVE to have a car payment every month!" it goes to [censored] in a handbasket for an industry that's made itself dependent on rapid product turnover.
 
Toyota wanted to the "the next GM" for a number of years.

Just goes to prove that you need to be careful for what you wish for.... you might just get it.
 
Yet for some reason our leader wants more scientists and engineers come out of our schools. I can't understand this. He can already find plenty of highly qualified professionals hoofing the streets of SE Michigan looking for a job.
 
Ask yourself; if a new toyota/lexus purchase was really a good value, why is this company being compared to GM...
 
Good time to implement a world-wide standard for pollution and safety. Then cars can be built and sold anywhere as needed for ultimate flexibility. (And rear turn signals will finally always be orange...)
 
Originally Posted By: Jonny Z
Dude, they can't even agree on which side of the road to drive on...


crackmeup2.gif
So true!

How about we get everyone on Metric Speed system too!
wink.gif
 
Originally Posted By: Kestas
Yet for some reason our leader wants more scientists and engineers come out of our schools. I can't understand this. He can already find plenty of highly qualified professionals hoofing the streets of SE Michigan looking for a job.


ask them to relocate...you will get 1% takers
 
Originally Posted By: ravenchris
Ask yourself; if a new toyota/lexus purchase was really a good value, why is this company being compared to GM...


Look at the Stock ticker...there is your answer
 
Originally Posted By: Jonny Z
Dude, they can't even agree on which side of the road to drive on...


Now THAT is hilarious....
thumbsup2.gif
 
Originally Posted By: hone eagle
Too many countries chasing US buxks,the fastest way to get a lot of it is build a car industry.At 17 million the market was/is jammed full .
Every new plant built anywhere means a plant somewhere else is redundant.
Chrysler and GM will bare the brunt almost 100%.
Even wages will follow to approx. the avg. of world wide industrial wage,sucks if your cost of living is higher than average.


Don't laugh...the Canadian plants are first at risk
 
Originally Posted By: 440Magnum
Some time starting in the 50s and completing with the rise of the Japanese carmakers in the 80s, cars turned from being "durable goods" to use-once-and-throw-away fashion statements. That's fine so long as consumers can continue to buy new ones every 2-5 years. But when the economy gets tight and people realize, "duh, I don't HAVE to have a car payment every month!" it goes to [censored] in a handbasket for an industry that's made itself dependent on rapid product turnover.


THe rapid trade phenomenon was created by the banks & Federal Reserve the same way the housing bubble was created. The auto industry just gorged itself on the proceeds.
 
Originally Posted By: PT1
Originally Posted By: hone eagle
Too many countries chasing US buxks,the fastest way to get a lot of it is build a car industry.At 17 million the market was/is jammed full .
Every new plant built anywhere means a plant somewhere else is redundant.
Chrysler and GM will bare the brunt almost 100%.
Even wages will follow to approx. the avg. of world wide industrial wage,sucks if your cost of living is higher than average.


Don't laugh...the Canadian plants are first at risk

Believe me I am not laughing
 
Originally Posted By: hone eagle
Originally Posted By: PT1
Originally Posted By: hone eagle
Too many countries chasing US buxks,the fastest way to get a lot of it is build a car industry.At 17 million the market was/is jammed full .
Every new plant built anywhere means a plant somewhere else is redundant.
Chrysler and GM will bare the brunt almost 100%.
Even wages will follow to approx. the avg. of world wide industrial wage,sucks if your cost of living is higher than average.


Don't laugh...the Canadian plants are first at risk

Believe me I am not laughing


Since the Canadians do not have an auto badge they will be first to go as nobody here will see their plants as destruction of a US auto company. Add to that the CAW wage benefit costs and over stringent government regulations and there is less and less hope for their survival.
 
Originally Posted By: StevieC
Originally Posted By: Jonny Z
Dude, they can't even agree on which side of the road to drive on...


crackmeup2.gif
So true!

How about we get everyone on Metric Speed system too!
wink.gif


Laugh it up. How is that relevant? It's not illegal to have a RHD car here. And pretty much anyone (besides NASA) knows how to convert units. Chances are your own speedometer already has km/h on it.
 
Originally Posted By: Tosh
Originally Posted By: StevieC
Originally Posted By: Jonny Z
Dude, they can't even agree on which side of the road to drive on...


crackmeup2.gif
So true!

How about we get everyone on Metric Speed system too!
wink.gif


Laugh it up. How is that relevant? It's not illegal to have a RHD car here. And pretty much anyone (besides NASA) knows how to convert units. Chances are your own speedometer already has km/h on it.


Given that he's in Canada, and we use Metric up here, I'd say that's pretty much an absolute
wink.gif
 
That's ok, the college-loan industry is the next bubble to burst according to trends so why not allow more poor souls to suffer excessive debt and bad decisions. There is no logical reason to have so many Americans with college degrees when the cost of paying off the loan offsets the pay raise you receive from it.


Originally Posted By: Kestas
Yet for some reason our leader wants more scientists and engineers come out of our schools. I can't understand this. He can already find plenty of highly qualified professionals hoofing the streets of SE Michigan looking for a job.
 
Originally Posted By: Tosh
Laugh it up. How is that relevant? It's not illegal to have a RHD car here. And pretty much anyone (besides NASA) knows how to convert units. Chances are your own speedometer already has km/h on it.


The speedo in my Monte Carlo lets you change from MPH to Km/H, you select which measure you want and it actually moves the needle to reflect the units, pretty cool.

Also changes the MPG readouts to KM/L.
 
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