Toyota feels bite of U.S. downturn

Times must be tough if Toyota can only net $12 billion - that's only $1 billion a month.

"Ray O" ...

Ray snarked!

:-)

Natalie

I thought the article over stated the case as well. But you only have to look back at Ford's performance from a few years back to see how fast things can go bad. Another idiotic move like wasting billions on the Turdra and the billons in profit can turn into losses overnight. I'll bet the Toyota upper management wishes they had spent that money on more hybrids instead of a product they are practically having to give away to move off the lots. It had loser written all over it when introduced, and the Monster Turdra looks like the stupidest move Toyota has made since they shipped the first Toyopet over here many many years ago.

Ed

Every so often...

"Ray O" ...

A rare treat.

:-)

Natalie

I think that the point of the article was that Toyota isn't forecasting an increase in profits like they have had for the past 6 or 7 years. 15 years ago, Toyota had something like $30 billion in cash reserves, and if they stuck to their game plan, they added a billion or two every year since then. Even at $1 billion per year, the cash reserves would be around $45 billion today.

Even the poor timing of the Tundra wouldn't make much of a dent in Toyota's rainy day fund, and the $15 billion they netted last year was after putting incentives on various vehicles, including the Tundra, and spending R&D money to develop a hybrid system for every series vehicle.

Toyota's upper management is ultra-conservative, and that has gotten them through previous downturns in the economy in a better position than its competitors. Since Toyota is starting this downturn in such a good cash position, I suspect that Toyota will come through this downturn in better shape as well.

Gotta keep 'em wanting more!

"Ray O"

I'm no industry analyst, but even I can see the simple logic in Toyota's recent successes. They were selling the right thing at the right time, and reaped the profits from same.

Further, though I know this'll make some folks here crazy, people simply don't need to buy a new Toyota as often as they would some other brands (even foreign brands; I'm not saying just domestic). I might have gotten a new car, if they dollar were stronger; my daughter is disappointed that she won't be getting my Echo, since my son got hubby's FX-16 at about her age. (there, there, Hachi). As it stands, not only do I not want another car, I just don't need it. My Echo is a workhorse that shows no signs of eminent demise.

Natalie

Perhaps, but the toyopet at $790 was a much better buy LOL

Any account will tell you, keeping ANY new vehicle longer than four years or

An account? What kind of account? A bank account? A Netflix account? In your case, I would think by account you mean the local bar tab. Perhaps you met Norm Peterson.

What capital is required to keep an old car? If something breaks down, of course it will cost money to fix the car. But not more than a new car.

The cost of maintaining a car for eight years is not much more than the twice the cost of maintaining a car for four years. Cars are dependable these days. After eight years, an average car would have about 120,000 mi on it. There might be some repairs needed, like new brakes, maybe a wheel bearing or CV joint, but nothing like the difference in price between a new car and what one would get from a trade-in.

At some point, it will be cheaper to buy a new car than keep and old one running. And, with newer safety features, safer, too. When it is worth replacing an old car with a new car depends on the circumstances. However, the time is certainly more than 4 years.

There are other costs associated with buying a new car, like higher insurance premiums and registration.

What loss? I have had a 1997 Ford Contour for about 11 years. So far, the only loss of use I had was when the car was front ended and needed some body work (a small bus backed into the car). And that was covered by insurance.

Jeff

So why did you keep the Pinto and Lincoln?

Considering the low thinking ability you have, I will not guess what you mean. Your thought processes are too messed up for me to even to guess what you mean.

What another great comeback!

You should print it out.

What your comeback tells me is that you have no clue what you are talking about as usual, and you are unable to explain how spending more money on a new-car loan or lease every four years is cheaper than just using a car one already owns.

In other words, it shows you are clueless as usual.

You are, however, good for laughs.

Jeff

Because they are two of my collector cars, not daily drivers. My two daily drivers are turned over in two years.

I buy a new car every year and sell of the two year old car. I currently have a 2008 MKZ and a 07 Mustang GT convertible, but my 09 will be here in around three weeks. ;)

Ya right

Good for you. Just because you do this does not mean it is a good idea.

Jeff

Another brilliant comeback by Mike Hunt!

Jeff

I'm just bustin' your chops ;-)

I'm surprised you don't wait a few months for the MKS - looks sharp (IMO, better looking than the MKZ), more real estate surrounding you, with comparable fuel economy to the MKZ.