Toyota UK MD: Recovery Could Take Five Years
Even Detroit’s fiercest defenders allow that The Big 2.8 should have thought a little further ahead than a single financial quarter– although they’re sure that Wall Street’s responsible for the shorter-termism. Hey! Anyone remember when Cerberus said they’d be better owners for Chrysler than anyone ’cause they didn’t have to report to Wall Street? You know: we’re quick! Less bureaucracy! More selling! Turn on a dime! Well, a dime’s about all they have left and former ToMoCo Prez Jim Press has dibs on that bad boy. Anyway… even though Toyota isn’t $30b in debt, the Japanese automaker is in full crisis mode. Yesterday, the Prius plant plotzed and they shit-canned executive bonuses. Today, we hear that the diesel engine project with Isuzu is DOA– minus the “OA.” You know that $1m ho’ down the Toyota used to throw for its dealers in Sin City? Gone. Seriously, talk all you want about misplaced Tundras, but these guys don’t dance this mess around. Just-auto {sub] reports that Toyota’s UK Managing Director reckons it could be as long as five years before the automaker’s biz recovers to last year’s level. “We have our forecasts for the next 24 months,” Miguel Fonseca revealed. “But it is very difficult to forecast further. After two years I think there will be a slow recovery, but my own belief is that it will be five years before we are back where we were.” And here’s something The Big 2.8 might have said, I dunno, ten years ago…
“We have to adjust our cost base to this new reality.” At the same time, ToMoCo UK plans to pursue the same-old core business plan– while eating someone’s lunch.
“These difficult market conditions will be an opportunity for us to gain market share as other manufacturers weaken but our total sales are not likely to increase… This will make cars more accessible and protect dealer profit margins rather than discounting. We will not push volume, but we will protect our dealer network. That is our key role.”
What’s the best Toyota NA is thinking along the exact same lines?
More by Robert Farago
Comments
Join the conversation
63CorvairSpyder, True enough. To me that points to the larger issue- a failed model. Most dealers I know make darn good money (they deal foreign), but they do really have a lot of (to me) useless overhead - so it's no surprise that somebody has to fund that. GM (or anybody) buys a boatload of power window motors for like $7 each. When you go to the dealer, it'll cost you $95. Easy. Lotsa overhead that has to be funded on the corporate level. Just the way the current system is structured. It could be a helluva lot easier and cheaper, but that will take further shaking out.
Makes me wonder what jim press is thinking right now. Remained with toyota chance of being in employment for foresable future . At chrysler oh no. Or what i'm i missing?