Toyota Profits Plummet 73.6%

Robert Farago
by Robert Farago
toyota profits plummet 73 6

Automotive News [sub] reports that Toyota’s profits took a dive in Q3, as sales in its North American and European markets dried-up and blew away. “North America slumped to a $335.9 million operating loss in the April-September fiscal first half. Sales there slid 9.4 percent to 1.357 million vehicles in the period. For the full year, Toyota lowered its ambitions 2.420 million units, an 18.2 percent fall off.” Bottom line? “Toyota now expects global operating profit to plummet 73.6 percent to 600.0 billion yen ($5.83 billion) in the fiscal year ending March 31, 2008. Just three months ago, Toyota had forecast operating profit to decline a comparatively modest 29.5 percent to $15.5 billion. The new goal would be Toyota’s lowest operating profit since the company began calculating in U.S. accounting standards in 1998.” But it is, let’s face it, a profit. If GM and Ford report similar revenue drops tomorrow– and why wouldn’t they be worse?– excrement and air movement device will collide. (As everyone and their mother are predicting.) Meanwhile, back to Toyota…

“This is an unprecedented situation,” Executive Vice President Mitsuo Kinoshita said whilst delivering the results. “Every week, the environment gets worse.” Kinoshita reckons the global car market– and thus Toyota’s profits– won’t rebound until late 2009. “At the earliest.” Needless to say, it’s all hands on deck at ToMoCo. “Watanabe is now chairing an ‘Emergency Profit Improvement Committee’ [EPIC?] charged with staunching the bleeding and making sure Toyota stays in the black for 2009 and 2010. Details are scant, but the committee will review everything from pricing to product pipeline.” I wonder if they run a fleet of Gulfstreams or pay their CEO $15.5m a year? No, didn’t think so…

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  • Bertel Schmitt Bertel Schmitt on Nov 08, 2008

    @Landcrusher: As much as I love you, one item cannot remain uncorrected. In a true depression, money in the bank, under the mattress, a cold cash kitty [s] will be [/s] is everything but worthless. A depression is when prices of stuff down and cash is king. Money becomes worthless when the government starts printing monopoly money to fund economic stimuli. THEN, the smart buy real estate.

  • Landcrusher Landcrusher on Nov 08, 2008

    Bertel, Sorry for the misunderstanding, I wasn't talking about a depression when I said "the big one". When I start talking about beans and ammo, I am talking about a collapse where paper money and rule of law have gone out the window. I use that to point out that there ARE best choices to make economically no matter what. Flight instructors use the expression, "Keep flying the plane," to impress upon pilots the need to never give up. You keep making rational decisions and doing your best. Failure to do so can turn an 80% chance for survival into certain death. Fear is the thing you can't give in to. It's the same thing with money. You keep making the best money decisions as long as you can. If you get a feeling of futility, you "invest" in a supply of beans and bullets and then get back to maximizing your wealth. If we give up, the politicians will be happy to take over our wealth. Fear is the thing you can't give in to.

  • Olddavid I do not know how to evaluate an automobile any longer. It seems all the selling points valued by the customer base are non-starters in my book. Two tons plus for this vehicle? $50,000 for a Dodge branded Alfa Romeo that cannot sell its heritage to American buyers anyway? Is there any compelling argument for a walk-in to be turned to a buyer by excitement alone? This does not have the ingredients to end well, and that grieves me as I have been a Chrysler fan since they had pushbuttons and slant sixes. Being an elderly me has been difficult lately as I have been a NIssan fan, too, since I first saw that odd Bluebird and we have seen their fortunes edging to free fall territory. What's next? My gramophone breaking?
  • SCE to AUX "maximize commonality on the assembly line"That's code for 'fewer options', which means the manual transmission is done for good. Less tooling, less training, fewer ECU code variants = lower cost and higher quality.I'm sure Ford's new quality guy agrees... or perhaps he thought of it.
  • Carrera Hmm..a Stelantis vehicle made in Italy. What can go wrong? I am sure it will be super reliable, particularly the first 3-4 years of production.
  • Kwik_Shift Manuals are great theft deterrents though. 😉Sad when they're disappearing from many makes.
  • Arthur Dailey Confession here. 2 of the previous generation Rogues in our family over the past 5 years. Saw some cost cutting between the 1st and the 2nd one. On the 'new' one there are no cubbies on the back of the front seats, the ignition is not lit, and there is a marked difference in the front seats. The first Rogue has the most comfortable seats I have experienced since the heyday of the PLCs. Despite sciatica could drive that Rogue for hours with no issues. The seats on the 2nd Rogue create discomfort after 30 minutes. And everyone in the family has noticed this.The first Rogue drove seamlessly. Quiet and comfortable on the highway. On both we have averaged just over 29 mpg. The 2nd Rogue needs to be warmed up and driven slowly if left out overnight in minus 30 (f) or -0 (c) weather, otherwise the engine just revs and the speed does not seem to increase. The dealer has been asked to look at this multiple times but each time they claim that there is no issue. It also has the worst Bluetooth interface I have experienced. Otherwise, based on size, cost, the Rogues were chosen over Toyota/Honda. Both were/are leased so not concerned about long term values/reliability. And the 'new' Rogue came standard with heated seats and blind spot warning, which the Toyota/Honda did not without going up a couple of packages.However we should have bought out the first Rogue when the lease ended. During the height of the pandemic, it could have easily been flipped for close to double the buyout cost.