Japanese Carmakers Lose Most Important Race Ever: The Race For Money
Toyota will still be #3 in cars made this year, but in terms of profitability, it has become an also-ran. Toyota shares that fate with their Japanese peers at Nissan and Honda. The Nikkei[sub] tabulated yen-denominated group earnings of 10 major automakers worldwide for the July-September quarter and comes to the conclusion:
“Japanese automakers trailed German, U.S. and South Korean rivals in net profit for the July-September quarter, highlighting Japanese carmakers’ struggles.”
Q3 Net Profits Of Major Automakers
RankGroupBillion JPYBillion $1Volkswagen732.09.42Daimler141.51.83GM134.61.74Hyundai134.21.75Ford128.61.76BMW112.61.47Nissan98.41.38Toyota80.41.09Honda60.40.810Tata28.10.4Japanese carmakers were hit by a double whammy: The March 11 tsunami destroyed large parts of auto production, not just in Japan, but worldwide. The soaring yen makes exports unprofitable and makes foreign profits look smaller once they hit the books in Japan.
The whole year will be a dark year for Japanese automakers. However, not making a loss under these circumstances can be something to be grateful for.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
More by Bertel Schmitt
Comments
Join the conversation
And both Mulally and Ford, Jr. (what does he do?) made TWICE as much as the CEO of VW last year. Too much of profits end up going to the top execs in US companies instead of to the shareholders.
To be fair - VW did have a huge special effect in their net profits, due to some Porsche Stock options that are now accounted for differently (don't ask me about details), now that the merger has been postponed. That did put a few billion dollars into VW's net profit. Porsche is on the other end of that stick - due to the postponed/halted merger, they had to announce a 3.7 billion € special effect, that put their net income into the negative, even though their operations are extremely profitable. Usually comparing operating profit imho gives a clearer view of a "carmakers" momentary profitability. Though at the end, the real number counts, it is quite often very distorted (just look at the up-and-down of Porsches net, while the operating was always very high...) Anyway, I googled some figures, if anyone cares. Exchange rates as of today, so take those with a grain of salt as well ;): VW - 3.87 billion $ Daimler - 2.64 billion $ BMW - 2.4 billion $ GM - 2.2 billion $ (theirs is called EBIT-adjusted though - what is it adjusted for?) Porsche (not included in VW's numbers) - 2 billion $ Nissan - 2 billion $ Ford - 1.9 billion $ Hyundai - 1.7 billion $ Toyota - 1 billion $ The changes in position aren't that dramatic, but the numbers do change quite a lot. And Porsche goes from losing 700 million $ in net income to a nice 2 billion $ in Operating Profit...
Toyota is not even half of GM? Like you mentioned about what GM's defintion is sometimes, well it depends on the circumstance asnd time of the year. personally don't like snap shots for that reason.
It's all legalized smoke and mirrors. Every company has dozens of tricks up their sleeves to make the picture look better, or worse, depending on their requirements. The only thing that has changed is that the Japanese Treasury is bust. The cost of the March 2011 could top 1 trillion dollars. Who has that kind of money laying around? Japan Inc is crying and stomping their feet like a 3 year old baby in a shopping mall. Regardless of whether or not Europe slips over an abyss next year or no, Japan's days as an export colossus are over.