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Forums - General Discussion - You know the economy is bad when Toyota reports its first net loss

Legend11 on 22 December 2008

Usually I discount claims of doom and gloom but it's now getting to the point where it's hard to ignore the signs that something very bad is happening to the economy.  Some people are predicting things will get better by the end of 2009 but what if this is just the tip of the iceberg?

 

http://finance.yahoo.com/news/Toyota-projects-first-apf-13892463.html

Toyota projects first operating loss since 1941

Toyota projects first operating loss since 1941 due to slumping auto demand and strong yen

"NAGOYA, Japan (AP) -- Toyota Motor Corp. projected its first-ever operating loss since it began such reports, acknowledging Monday that its nine-year stretch of global vehicle-sales growth had stalled.

Crashing auto demand, especially in its key U.S. market, and the profit erosion from a surging yen proved too much for Japan's top automaker, which had been booming on the success of its fuel-efficient models, incluading the Camry sedan and Prius gas-electric hybrid.

Gloom dominated the annual news conference by Toyota's president, who in recent years had outlined ambitious expansion plans. This year, Toyota President Katsuaki Watanabe even refused to give a worldwide vehicle sales goal for 2009.

"The tough times are hitting us far faster, wider and deeper than expected," he told reporters at Toyota's Nagoya office. "This is an unprecedented crisis requiring urgent action.""

(more at the link)



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Tremble on 22 December 2008

Yeah I heard that today ... It's a shame cause toyota had a good business plan, they knew that the demand for green cars would be important etc etc etc!

But, well one billion's not that much for such a company!



FPSrules on 22 December 2008

wow toyota. and they have some of the most afforable cars in the market. well toyota is fine, they won't go out of business regardless. they have a lot of brand power, and that should be more than enough to keep their boat afloat



Cougarman on 22 December 2008

damn, since 1941? i am surprised they were profitable during WWII, i am impressed, it is very bad sign when a company like toyota makes a loss.

the global economy is pretty much fucked right now, it will take some doing to get this fixed.



Wii/Mario Kart Wii Code:2793-0686-5434
akuma587 on 23 December 2008

Depression here we come!



We had two bags of grass, seventy-five pellets of mescaline, five sheets of high-powered blotter acid, a salt shaker half full of cocaine, a whole galaxy of multi-colored uppers, downers, screamers, laughers…Also a quart of tequila, a quart of rum, a case of beer, a pint of raw ether and two dozen amyls.  The only thing that really worried me was the ether.  There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. –Raoul Duke

It is hard to shed anything but crocodile tears over White House speechwriter Patrick Buchanan's tragic analysis of the Nixon debacle. "It's like Sisyphus," he said. "We rolled the rock all the way up the mountain...and it rolled right back down on us...."  Neither Sisyphus nor the commander of the Light Brigade nor Pat Buchanan had the time or any real inclination to question what they were doing...a martyr, to the bitter end, to a "flawed" cause and a narrow, atavistic concept of conservative politics that has done more damage to itself and the country in less than six years than its liberal enemies could have done in two or three decades. -Hunter S. Thompson

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Jo21 on 23 December 2008

they always post bigger profits than GM.
and recently passed it in marketshare, so its kinda scary.



SnesTea on 23 December 2008
akuma587 said:
Depression here we come!

 

w00t!

Personally, I don't think it will be as bad as the Great Depression.

 

OT: If Toyota is showing net loss then that really goes to show that the Big Three are really in the hole. Poor GM.



megaman79 on 23 December 2008

Their not making enough hybrids and small cars. But they are making millions more than GM, Ford and Chrysler at least.

Nintendo is still officially Japan's biggest company then. Toyota used to be or maybe it still is.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

Spankey on 23 December 2008

Japan has to weaken the Yen somehow, and fast. It's causing too many problems for it's global companies.



Proud Sony Rear Admiral

SMcc1887 on 23 December 2008
megaman79 said:
Their not making enough hybrids and small cars. But they are making millions more than GM, Ford and Chrysler at least.

Nintendo is still officially Japan's biggest company then. Toyota used to be or maybe it still is.

I wouldnt say that. It has alot of competition in Toshiba, Canon, JVS, Panasonic, Sony, Mitsubishi, Hitachi and a whole heap more XD