Comments on: Toyota: Sales Stumble, Stock Tumbles, Prius Gets Ready to Rumble

By: rtx

rtx — Sun, 26 Oct 2008 23:34:43 +0000

“For a company like Toyota, having vehicles sit on the lot isn’t as big of a deal than for some other companies (looking at you the Big 2.8) because the production was paid out of earnings, not borrowed money.”

Also the Toyota system gives start-up $$$$$ to new locations but the new location is expected to finance any expansions that are needed once they are on solid ground. In other words the apron strings are cut after 10 years or so and if they can’t grow on their own there is no more help from Mother Toyota. It forces smart business practices to be made by the individual plant management.
The Texas plant is suffering because of a poor decision which focused their entire production on gas guzzling trucks with no back-up plan in place to switch to something more fuel efficient.
Toyota has been paying their workers in Texas NOT to build trucks for the last month or so.
Toyota will be around long after GM/Ford/Chrysler have been carved up by the creditors who own them.

By: oldyak

oldyak — Sun, 26 Oct 2008 22:47:15 +0000

Toyota in trouble…..
Heck,EVERYONE’S in trouble.In case you havent noticed there are even WHOLE countries in trouble,and I mean their monetary systems have completely collapsed!!
The world is running to the U.S. for safe haven(go figure)even after the screwing they got from us that caused this in the first place!!!
Aint America great!!!!!!!
as far as Toyota goes..they could loose a gizillion
dollars a day and still be able to survive.
I think they will stop at nothing to succeed in destroying any competitor,in any country,any manufacturer.Just like American BIG BUSINESS huh!

By: barely.working

barely.working — Sun, 26 Oct 2008 15:46:32 +0000

It’s a tough go for anyone in the auto industry right now, however Toyota is one of the best companies to weather the storm. Survival of the fittest. For a company like Toyota, having vehicles sit on the lot isn’t as big of a deal than for some other companies (looking at you the Big 2.8) because the production was paid out of earnings, not borrowed money. Sure there are holding costs and there is a hit on depriciation, but at least you not paying for the financing charge for production and having that loan sitting on your balance sheet.

Of course the highly export driven stocks in Japan are going to fall right now, but at least those companies have planned for the day that this exact thing would occur.

By: Facebook User

Facebook User — Sun, 26 Oct 2008 15:26:39 +0000

Toyota in big trouble? Maybe. Even they are not immune to the current economic climate. Their product lineup has some models that can help them weather this situation- Prius, Corolla and Camry. Unfortunately, they also have models rotting on lots- Tundra, Sequoia to name a couple.

By: Geotpf

Geotpf — Sun, 26 Oct 2008 07:59:00 +0000

autonut :
October 25th, 2008 at 4:06 pm

I would concentrate on stories about survivability or death of domestic auto industry. Nothing shall happen to Toyota in near future. Interestingly enough Toyota is not in a rush either to merge with anybody or to purchase outright dying brand.

Toyota ain’t going to buy any of the Detroit 3 (why would they?), but they already own a little bit of Isuzu and Subaru (they purchased these bits indirectly from GM), and I wouldn’t be surprised if they take over control of the two outright.

By: Pch101

Pch101 — Sat, 25 Oct 2008 23:17:54 +0000

The dollar has been gaining against every other currency, except for the yen. Those Japanese currency manipulators that we keep hearing so much about must be sleeping on the job!

By: 50merc

50merc — Sat, 25 Oct 2008 21:13:24 +0000

It’s not just that unit sales are down, when the dollar buys fewer yen it’s like cutting the sales price of a Toyota sold here.

By: autonut

autonut — Sat, 25 Oct 2008 20:06:02 +0000