Toyota UK MD: Recovery Could Take Five Years

Robert Farago
by Robert Farago
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?

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2 of 10 comments
  • Porschespeed Porschespeed on Dec 16, 2008

    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.

  • Musah Musah on Dec 17, 2008

    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?

  • Master Baiter Might as well light 50 $100 bills on fire.
  • Mike1041 At $300K per copy they may secure as much as 2 or 3 deposits of $1,000
  • Sgeffe Why on Earth can’t you just get the torque specs and do it yourself if you’re so-inclined?!
  • Sgeffe As was stated in another comment, the FAA nominee went down in flames. But the NTSB chairwoman certainly didn’t, and she’s certainly not qualified either!Lots of this kind of stuff going on both sides of the aisle—Ben Carson would have arguably made a better Surgeon General than HUD Secretary under Trump, for example.
  • Art Vandelay Interesting, the Polestar 2 I had as a rental utilized Android Automotive which is what GM said it is going to exclusively, yet it still offers Apple CarPlay according to this. Wonder if GM will do the same.