While America Slept. Monday, December 22, 2008

Toyota officially in the reds for 2008: Toyota announced today what we had reported a few days ago: “Toyota will make its first-ever operating loss in the fiscal year through March as recessions at home and abroad corral Japan’s biggest automobile maker into as tight a corner as it has ever known,” the Nikkei writes. The dark stars are in perfect alignment: The yen is too strong, the slump in vehicle sales in key markets like the U.S., Europe and Japan is too big. Toyota expects a consolidated operating loss of Y150 billion, or about $1.68 billion, in the fiscal year through March. Six weeks ago, the company still expected an operating profit of Y600 billion in the current fiscal year. Now, “it’s a kind of emergency that we’ve never experienced before,” said Toyota President Katsuaki Watanabe, speaking at a news conference in Nagoya. “The environment surrounding us is extremely harsh.” The Toyota stock went up on the news. The market had expected worse.

Daihatsu slimming also: In related news, Toyota’s small-car-making subsidiary Daihatsusaid it will cut domestic automobile production by a another 16,000 units, and will shed about 20% of its temporary work force, the Nikkei (sub) reports.

Suzuki likewise: Suzuki will lower domestic car output by an additional 29,000 units for the current fiscal year ending March as it adjusts to slumping sales in overseas markets. The auto maker, which specializes in compact cars and sports utility vehicles, said it will scale down domestic car output to 1.160 million units due to weak demand for compact cars for export, the Nikkei (sub) writes.

Hot pursuit: Mitsubishi is going after a niche market: Police with a need for speed to apprehend perps with a lot of bhp. A Lancer Evolution X high-performance sports car that has been specially modified for foreign police organizations has been delivered to the South Yorkshire county police in England. The car will join a Lancer Evolution VIII and Lancer Evolution IX already in use by the county’s Road Crime Unit, which targets speeders and reckless drivers, the Nikkei (sub) writes. The new vehicle is based on the carmaker’s FQ-360 GS, has 20% more power and acceleration than the civilian model and can do 248kph. For close-in combat, the car’s body has been made more durable to better withstand high-speed collisions.

Chrysler’s China CEO leaving: F. Murtaugh, the chief executive of Chrsyler’s Asia operations, will leave the company soon, Gasgoo writes. Murtaugh had spent ten years in directing General Motors’ expansion in China, and then joined Shanghai Automotive Industry Corporation (SAIC) in June 2006. In September 2007 he was brought in to help Chrysler expand its China operations. Chrysler has just dropped cooperation talks with Chery Automobile to sell small cars in the United States. No progress has been made with Great Wall Motor since the two sides signed a memorandum of understanding in July. Earlier talks with SAIC and Guangzhou Automotive Group Co (GAC) all went nowhere.

Nissan China debuts Infiniti G37: Nissan China launched its new Infiniti G37, their first luxury Coupe car for the market, Gasgoo reports. According to Nissan China chief Yasuaki Hashimoto, China is Infiniti’s second largest l market after North America.

Aussie HOLDEN-handling a template for the U.S.? Australia’s GM-subsidiary Holden is expected to announce it will produce a fuel-efficient, four-cylinder car at its Adelaide plant – the first small vehicle to roll off the assembly line in South Australia in decades, Australia’s Age reports. The paper thinks the final commitment will be made today after financial backing under the Australian government’s new $AU6b car plan is announced. A TTAC mole in Australia says: “The Aussie gov’t is basically giving GM money as quid pro quo for build a specific model a car. I would not be shocked if this becomes the model for how the US bailout is ultimately handled, with taxpayer dollars exchanged for specific new vehicle launches.”

Opel needs money, but doesn’t ask for it: Klaus Franz, head of Opel’s workers council, calls the $17.4b “a drop in the bucket” and asked the German government for substantial help. He can ask as much as he wants. The official request must come from Opel, and must be accompanied by hard data and warranties. Opel hasn’t surrendered anything.

Tata sends some money to Jaguar: Tata, the Indian owner of Jaguar Land Rover, has agreed to inject “tens of millions” of pounds into the British car company to prevent an immediate cash flow crisis, while the British government continues to consider the case for a taxpayer-funded bail-out, the Financial Times reports. They also said that “Tata’s agreement to provide limited immediate support for Jaguar Land Rover will not prevent the Indian company from asking the (British) taxpayer for hundreds of millions of pounds in longer-term support for its UK subsidiary.” According to the FT, analysts question whether Tata Motors has the strength to support Jaguar and Land Rover when its own finances have been badly battered.

A smash hit: Business is booming for Japanese therapists who find clients for their dish-smashing stress therapy a hit in tough financial times. Begun only one month ago, stressed out passers-by dish out about two dollars to smash a cup or saucer and relieve their anxieties to the encouragement of staff, Reuters says.