As yen sweetens, Toyota sales sour
Being Toyota doesn't grant you any additional immunity from simple global economics. Word from Tokuichi Uranishi, executive vice president of Toyota, is that one of the world's largest automakers is going to miss its sales target of 9.85 million vehicles for 2008.
Toyota execs cite slowing sales in the United States, Europe, and Japan as a primary factor. In addition, rising raw material costs are hurting the global automaker, which assembled 9.37 million vehicles in 2007. To top it off, a yen that hit a 13-year high against the dollar at the beginning of this week is cutting profits on exports from Japan.
It may be up to China, Russia, and Korea to pick up some of the slack. Those emerging Asian markets are active, and Toyota is looking at them for future growth. In a move towards achieving that goal, the Prius, Camry, and RAV4 sports-utility will be introduced in South Korea shortly. Sales are expected to be just 500 units per month initially, and then increase to upwards of 1,000 a month.
[Source: Automotive News, subs req'd]
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Reader Comments (Page 1 of 2)
Tagg 4:27PM (3/20/2008)
Quite the about face from when they announced their sales projections and scoffed at GM, Ford and Honda's projections for being so low.
It is really interesting to see how the microscope focuses on Toyota as the leader in global sales and how imperfect the seem to be. Toyota is obvisously a very well run company with great product and people but the scrutiny will only incease as they get bigger and more powerful.
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Mr. Oak 4:39PM (3/20/2008)
Really? they are the global leader in sales? When did this happen?
Tagg 5:02PM (3/20/2008)
It happend about two years ago according to Automotive News. GM cannot count Wuling because they don't own a signifcant interest in the company (roughly 30%). Just like Ford doesn't count Mazda since they only own roughly 40% of Mazda.
GM is and has been #2 for a while now.
Dan 5:13PM (3/20/2008)
Don't quote me on this: I believe the majority stake in a Chinese company ~33%. So therefore GM technically would own Wuling.
Tagg 5:29PM (3/20/2008)
Yes, but SAIC owns over 50% and they are their own comapny seperate from GM.
So the municpal government of Shangahi owns more than half of Wuling, completely seperate from GM China's 33% stake and Wulings' 15%.
long 6:21PM (3/20/2008)
Scrutiny??? man, toyota has been treated very well by the media and who ever. Toyota recalled more cars then the sold in 2006 and none of those information was issued out to the public. Fawk that crapy over rated co and they make some of ugliest crap there is. They will never reach their sales projections and surpass GM. I own a honda and it's better then toyota by a far margin.
brn 8:51PM (3/20/2008)
I believe Ford's 38% ownership of Mazda gives them controlling interest. I don't understand why that is, but who am I to question big business. :)
Anyway, if they've controlling interest, you might want to reconsider if they can count them.
Tagg 10:21PM (3/20/2008)
I don't know what to count but I would trust Automotive News and their numbers versus GM's numbers.
From my understanding Ford does not count Mazda in North American sales even with close to a 40% stake in company. My rationale is GM shouldn't count Wuling if they own 33% and another company owns just over 50%.
For those still in denial it is a moot point since Toyota will still likely pass GM in worldwide this year no matter how you fudge the numbers.
The bottom line is who cares if Toyota is the largest? Look what the largest automaker has done over the past few years, lose money hand over fist. Its about being profitable first and then building your volume because any one of the major automakers (Honda, GM, Ford, etc.) could be number one in sales if they sacrificed profit. Hell, GM has been doing for years now!
I am not a Toyota "fanboy" but I am a fan of their business model and implementation. It is really interesting to look at and see why Toyota is so successful. I do wish however people would be more objective when it comes to their cars (cough,Consumer Reports!) and praise for their cars because statistically their is almost no difference from Toyota to a Honda to a Ford anymore.
Tricky dicky 4:42PM (3/20/2008)
loks great on them. they lap up the gravy of the yen and are the darlings of the automotive (reporting) community as the unstoppable juggernaut..
This is hardly a surprise to anyone who looked at the info objectively.
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PJ 11:32PM (3/20/2008)
The question, of course, is *by how much* they're going to miss that mark.
9-point-anything million vehicles sold and you're probably feeling pretty good.
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Driver X 5:03PM (3/20/2008)
The sun doesn't shine on the same dogs ass all of the time!
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KT 5:06PM (3/20/2008)
Boo freekin Hoo....
The only reason they're complaining about materials cost is because they lost some of that cost advantage they've grown accustomed too (now that the dollar has tanked).
Of course, these cost have been a thorn in the domestic's side for some time now. It's absolutely ridiculous how much these raw materials have jumped. Some of them over 200%.
Welcome to the real world Toyota!
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Richard S. 5:30PM (3/20/2008)
They are losing sales in Japan because the the Japanese are dying off. They face a bleak demographic problem where more Japanese are dying than being born. So even with over 40% of the domestic market, Toyota's sales in Japan will decline.
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Dinger 6:23PM (3/20/2008)
Whoa there! "Bleak demographics"? You sir, are a master of understatement. It's not bleak... bleak assumes a sliver a hope. What they are facing is a "death spiral". A death spiral which has already started as Japan's population peaked out a few years back.
It's the death spiral that has the Japanese building cute personal service robots to help their aging population (since there are no young'ins to do the work) while we are building robots like the Big Dog.
http://www.bostondynamics.com/content/sec.php?section=BigDog
Who will of course one day be our masters.
John P. 5:35PM (3/20/2008)
Another reason they are souring is that other car makers are starting to make good cars too and Toyotas are boring as hell.
There is life past the Toyota dealership people. I think Honda sales are way up last I heard.
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Jeremy B 6:30PM (3/20/2008)
I think you might wanna run that by them again!! They havea hard time understanding that.
Except, Honda is just as boring! The only true RWD honda has is the S2000!!!
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superdart 7:21PM (3/20/2008)
Toyota has the most boring, ho-hum line of cars ever assembled (yawn).
The current Japanese population situation is what happens when you make it SO expensive to live, that no one can afford to have kids. (Hmm. I believe Europe is quickly approaching this same issue, aren't they?)
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Lithous 6:51PM (3/20/2008)
"To top it off, a yen that hit a 13-year high against the dollar at the beginning of this week is cutting profits on exports from Japan."
You had me for a second. All the educated Americans on autoblog (i.e. not those dumb domestic fans) will tell you that all Toyota parts come from America. So there is no disadvantages to the weak dollar for Toyota. Just advantages. Tell GM to stop making their latest (hybrid) technology in Japan and assemble the parts there unlike Toyota who builds all their hybrid parts in America.
Synergy is our savior!
http://media.gm.com/servlet/GatewayServlet?target=http://image.emerald.gm.com/gmnews/viewmonthlyreleasedetail.do?domain=3&docid=40761
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elprogramer 7:02PM (3/20/2008)
Err, I'm going to fess ignorance in this matter, but not all of their raw materials come from the United States.
I always thought their manufacturing plants were a way around our tariffs and that most of the universal parts were still made in Japan.
Russell 11:50PM (3/20/2008)
READ THIS A**.
http://www.autoblog.com/2006/09/01/level-field-institute-releases-report-on-domestic-content/