Toyota shut down

TOKYO ? Toyota is suspending production at all 12 of its Japan plants for 11 days over February and March, a stoppage of unprecedented scale for the nation's top automaker as it grapples with shrinking global demand.

The last time Toyota Motor Corp. halted production at all its Japan plants was in August 1993, when demand plunged because of a rising yen, and that was for only one day, according to the company.

A global economic downturn has hammered the auto industry in Japan and elsewhere, forcing carmakers to cut staff, lower production and delay new models. Major automakers in the U.S. had teetered on the brink of collapse until securing a multibillion dollar government lifeline.

"We are coping with a slump in global sales," Toyota spokesman Hideaki Homma said Tuesday. "Demand in the world auto market is so depressed that every model is falling sharply in sales."

Toyota said last year that it was stopping production at its 12 domestic plants for three days in January. But it decided on additional closures because of the global downturn. Toyota will stop output for six days in February and five days in March, it said.

Of Toyota's domestic factories, four produce vehicles while the rest make engines and auto parts.

Overnight, Toyota reported that its U.S. sales in December were down 37 percent on year, a worse drop than Ford Motor Co.'s 32 percent drop and General Motor's 31 percent slide.

Toyota last year suspended production at its auto plants in Alabama, Indiana and Texas for three months, and shut down output for two days in December at all its North American vehicle factories including five in the United States, one in Canada and another in Mexico.

Chrysler LLC also shut down its plants for a month in December, longer than the usual two-week break, while GM has said it would shut down a plant in Thailand for up to two months.

Toyota is also struggling in its home market, which has been stagnant for years. The sales drop has worsened amid a global recession.

Sales of new vehicles in Japan fell to 3.2 million vehicles last year, the lowest in 34 years, the Japan Automobile Dealers Association said Monday.

Last month, Toyota said it was slipping into its first operating loss in

70 years, expecting 150 billion yen ($1.66 billion ) of operating losses for the fiscal year ending March 2009.

Toyota, which makes the Prius gas-electric hybrid and Camry sedan, expects 50 billion yen ($555 million) in net profit, down from 1.7 trillion yen earned the previous year.

Reply to
Steve W.
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But I'm *sure* someone will claim that this is Chrysler, Ford, and GM's fault.

:-p

Reply to
Steve

Lets just blame the US and be done with it. We'll get blamed for it anyways.

Reply to
m6onz5a

Could be. I drove a Dodge Omni once and it soured me on the whole _concept_ of the automobile. Best argument for walking I ever heard.

--scott

Reply to
Scott Dorsey

You should notice that Toyota fired it's CEO....

Don't you think they wish they hadn't wasted billions on the Turdra now. I think I'll send them an "I told you so letter."

Reply to
C. E. White

In a bear market, this happens. It isnt limited to GM, Ford, and Chrysler.

Albeit, GM uses about a billion or two per week, doesnt it? Seems like this was the shortfall that was going to drive them bankrupt.

There is nothing they can do to stop the fall in global economy; the only think any car maker can do is compete, innovate, product quality at an affordable price. ("Design" should fall under innovation)

Reply to
HLS

The move I see is blame people who save money instead of spending more than they make.

Reply to
Brent

If I could realistically be blamed for the end of Toyota's existence.... I'd actually be very proud. :-p At least I can take pride in never having contributed a penny to their continued existence, but that's not quite the same. Much too passive. :-)

Reply to
Steve

Reply to
Steve

Well yeah! We're clearly not doing our fair share. ;-)

For the moment, I'm positively *loving* the automotive implosion. Have you SEEN prices on cars lately? Wife and I bought 2 used cars for prices I would have considered completely unbelievable a year ago, and my father bought a new, loaded Ram 1500 quad-cab for only $4k more than he paid in 1992 for a the Dakota it replaced. Definitely a buyers market!

Reply to
Steve

I'd be sure to copy that letter to all the local politicians in San Antonio who pushed through all the incentives and tax abatements for the Tundra plant, and now may (hopefully) lose their jobs next election cycle.

Reply to
Steve

The thing I find unbelievable is that GM has had marginal profit on a per-vehicle basis for MANY years now. At least since the 80s, if not the

70s. Chrysler has a routine boom and bust cycle every 15-20 years, as is a risk with a less massive company, but has at least made some gains in production efficiency over the years. But how GM could continue to live with such inefficiency for so long without taking effective steps to change the situation is a mystery to me.
Reply to
Steve

Upper management is held responsible for that (or not, in this case). The board of directors is directly responsible for the choice and evaluation of the CEO. That is how I see it, anyway.

All this should fall right on Ric Wagoner's head.

Nobody below Wagoner and his pinstripe suited lackeys can do a darn thing to improve the company, except to do their assigned jobs as well as they possibly can. Lack of vision at the top is a deadly affliction.

Reply to
HLS

If you look at the actual numbers, GM actually made some money in the car business. Unfortunately they lost their shirts in the car FINANCING business.

--scott

Reply to
Scott Dorsey

And this is strange because GMAC was supposed to be the creme de la creme. Their golden egg.

Reply to
HLS

I haven't gone around to the dealers like I should be doing. I was interested in the GT500 mustang... but the dealers still won't come down on price. They are still expecting over sticker for them. People don't seem to be buying as every couple of weeks another arrives at the local ford dealer without one being sold.

Reply to
Brent

Just recently, a German billionaire guy in Germany commited suicide, he threw himself in front of a moving Train.One of the thingys he owned stock in was Volkswagen. cuhulin

Reply to
cuhulin

I am too sweet to croak meself.I don't care how rough the economy gets. cuhulin

Reply to
cuhulin

That is unsurprising news since all carmakers compete for the same group of car buyers. Fewer buyers are buying. The pain for Toyota was deferred because they are a far more efficient car manufacturer that Ford,/GM/Chrysler. Because Toyota has always focused on fuel efficient cars that too has softened the blow..

Reply to
John S.

You mean like the Tundra, Sequoia, 4Runner, etc?

Simple question, what did Toyota spend more money on in the last decade - refreshing the decades old Corolla platform, or the Tundra monstrosity? Toyota execs are just as stupid and shortsighted as GM execs, they just get to hide out in Japan and their subsidies / bailouts are handled quietly. There is one difference, Rick Wagner still has his job, Katsuaki Watanabe lost his. This is one thing that I definitely think Toyota does better than GM. But then Ford made their move a couple of years back.....which is probably why they didn't actually need the bail out loans GM is desperate to get.

Ed

Reply to
C. E. White

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