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Ear to the Ground

Toyota to Post First Loss in 70 Years

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Posted on Dec 22, 2008
Toyota logo
businessweek.com

Here’s yet another sign of the econo-polcalypse: Toyota Motor Corp., which has been profitable for decades thanks to steady sales and shrewd leadership, has predicted a loss for the first time in 70 years.


AP via Google News:

“The tough times are hitting us far faster, wider and deeper than expected,” Toyota President Katsuaki Watanabe told a gloomy news conference at the company’s Nagoya, Japan, headquarters. “This is an unprecedented crisis requiring urgent action.”

Sona Iliffe-Moon, a spokeswoman for the automaker’s U.S. arm., said the company has not had any layoffs since the 1950s.

“As a result of that experience, it became a part of our culture to ensure employment and stability for employees,” Iliffe-Moon said

Toyota had reported strong growth in recent years, boosted by heavy demand for its fuel-efficient models like the Camry sedan and Prius gas-electric hybrid.

But Watanabe said a severe drop in demand, especially in North America, which accounts for one-third of vehicle sales, and profit erosion from a surging yen were too much for Japan’s No. 1 automaker. Overall U.S. auto sales fell to their lowest level in 26 years last month.

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By Hemi*, December 23, 2008 at 1:24 pm #

This is just too damn bad for Toyota. If our government was as protective of our industries as the Japanese are of theirs, US companies would be able to make similar claims. Thank God for us buying Toyotas. Ask Japanese autoworkers how they’re faring right now. There are better questions. Like are there any autoworkers left in Japan or have they farmed the jobs out to China?

Maybe the problem with Toyota is that my current Ford (Shudder!!! Did he write the “F” word?) is ten years old and still running and looking great. And my previous auto, a 17 year old Chevy (The “C” word!!!), was still being driven when I sold it. And a 13 year old Chevy prior to that and I’m back to riding a Schwinn stingray. If you want to save industrial jobs and save the environment give up the battery powered, windmill spinning, solar panel producing pipe dream. Those are all worthwhile hobbies. Finance instead a fuel refinement or retrofit technology that would make the current cars more efficient. Oh, I’m forgetting the oil lobby that would balk at that and has in the past c-blocked similar technologies. Or the Algore crowd poised to frisk us for the green technologies. “Oh that’s just a crazy talk!” Yeah, and I’ve got a sure-fire mutual fund to sell you.

By the way, where is Algore now that I’m knee deep in snow? We were at minus 3° here this morning and it’s just December. He must be in hibernation until July. Is he shape-shifting into an elephant seal or what? Hard to sell global warming at minus 3°. Send the polar bears south of Chicago. With snow in Louisiana, maybe they can attend Mardi Gras! Maybe PETA can help move them; I wouldn’t want them to freeze.

It’s much more efficient to pay for jobs in maintenance and retrofitting than constant replacement. Get rid of the throw away attitude. Stop producing cheap crap. Stop demanding cheap crap. There’s no price point that Malwart (I meant that!) can lower an item to that changes it’s quality. How many more landfills do we need to absorb all of the cheap passé technology?

A huge disconnect is that US autoworkers are compared to those working for the importers. We never hear about what Toyota execs are earning compared to the bigwigs here. All we hear is how overpaid US workers are, that’s the problem. It was once a source of pride that US workers earned a decent living. Now that’s treated like our national sin by the media and our elected representatives. You know them, the Ivy League crowd that have never dirtied their hands or sweated paying a bill. Oh yes, please put Caroline Kennedy in the senate. She’s been there and done that. (Been to Martha’s Vineyard and done the VIP tour of the Guggenheim.) The rich get richer. But I digress…

Back on point. Toyota had an off year. Boo freakin’ hoo!

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By hippy pam, December 23, 2008 at 10:59 am #

No production/product=no jobs…...No jobs=no money…..No money=no buying power/bill paying/food/necessities….No spending/buying=RECESSION….....THANK YOU VERY MUCH “ole mr. bullshit” and his re_puke_lickin” gubmint…...

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By nino, December 23, 2008 at 9:20 am #

Toyota has always made a good quality product. We’ve always purchased them. We have a Prius and a Tacoma (the small 4 cyl truck). I also done work for our local Toyota dealer and TMMI (Toyota Motor Manufacturing of Indiana). That is until recently. They cut almost all the creative work I did for their marketing department last month. Poof, gone! Then again, I always new this was coming…

Toyota’s problem is much the same as the “big three,” the banked way too much on big-big-big. Toyota shifted from making great, small, affordable, fuel efficient cars to giant trucks and SUV’s. Big mistake…

Near where I live Toyota built a massive plant to assemble their biggest trucks and SUV’s. I was shaking my head when they were talking about it. Told people I knew that wanted to work their it wouldn’t last the decade. Now, all those people could be looking at layoffs as well. I am sorry for them.

When a society understands only one thing, on a finite planet, “grow-grow-grow” that society is fated to fail. What will be the result of all these economic events is we will end up a poorer country. We may not even have enough capital to purchase the 60% of the crud oil we import. Then things could get really ugly.

Some have made off with billions while others can’t make the payments. Ah, capitalism + greed =  the first domino to fall. Next is resource depletion and sacristy. Not a pretty picture at all…

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By Shift, December 23, 2008 at 3:36 am #

American working class household income has declined to the place where a new car is out of the question.  They are just too expensive to afford.  I was looking for that trickle down car to land in my driveway, no luck.  Then I thought a trickle down used car would be allright.  No luck there either.  I do have a car fender and perhaps therein lies the problem.

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By Jon, December 23, 2008 at 1:52 am #
(Unregistered commenter)

Here is a short bit of Toyota history:

Sakichi Toyoda, a prolific inventor, created the Toyoda Automatic Loom company based on his groundbreaking designs, one of which was licensed to a British concern for 1 million yen; this money was used to help found Toyota Motor Company, which was supported by the Japanese government partly because of the military applications. The Japanese relied on foriegn trucks in the war in Manchuria, but with the Depression, money was scarce. Domestic production would reduce costs, provide jobs, and make the country more independent. By 1936, just after the first successful Toyoda vehicles were produced, Japan demanded that any automakers selling in the country needed to have a majority of stockholders from Japan, along with all officers, and stopped nearly all imports. [my note:  see how Japan PROTECTED Toyota from foreign competition? Unlike here in the US where we kill off our own manufacturing and workers via NAFTA and ‘globalization free trade.’ ]

link is: http://www.toyoland.com/history.html

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