Weak June has Toyota reviewing U.S. ops
Toyota posted a 10% sales decline for its bread-and-butter brand of over the month of June, with numbers that are even worse -- an 11.5% drop -- when the Scion and Lexus brands are added into the equation. In response to these very un-Toyota-like sales declines, the automaker is now revamping its vehicle production in the States. Though it has already introduced measures to slow the production of full-size Tundra trucks and Sequoia SUVs, reports indicate the further cuts will be made at the San Antonio truck plant. The Indiana plant, which also produces Tundras, will see workers transferred to other lines where more popular vehicles are assembled. Even plants in Japan that export vehicles to the U.S. could be affected. Toyota is hardly used to seeing double-digit drops in sales in the U.S., so it will be interesting to see how the giant Japanese automaker responds in the months to come.[Source: MarketWatch]
Reader Comments (Page 1 of 4)
paul34 3:14PM (7/05/2008)
It isn't just limited to Toyota, though, eh? I'm not surprised that "even" Toyota took a huge hit. Everyone has. People just aren't spending money - regardless of whether they could have actually afforded it or not. People are getting more and more concerned about the future and their financial situation in that future, so I think people are keeping their dollars close to home.
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MemphisNET 3:19PM (7/05/2008)
My thoughts exactly. It's not even fuel-woe's, its financial standing in general. There's a point where people aren't just running out buying cars!
Cary 3:34PM (7/05/2008)
People are still buying Mercedes. That to me says something in itself. People who don't have money to burn aren't spending money. People who have been, for the most part, financially responsible in their previous lives [80's, 90's] can still afford what they want. It's responsibility that's hurting most people financially today, or the lack thereof. Not to say that all that are in a bind aren't/weren't responsible with their money. If people would look at life realistically, they would know that "all good things come to and end" and that "nothing lasts forever." People say these things all the time, but still forge on with too much optimism for their own good.
In-short, it's a shame that it takes recession to let a little air out of peoples' sails and bring them back down to reality.
P.S. Federal Reserve Banking System = Fraud/Scam
tankd0g 7:32PM (7/05/2008)
Cary, most people who can't afford new cars now were 10 years old in the 80s. They didn't invest their allowance responsibly?
FSM 4:22PM (7/05/2008)
@ Cary
I think you have it wrong. People that buy Mercedes Benz are not necessarily the responsible ones. Instead this shows that there is a huge divide in the haves and have-nots. Middle income and low income people are not comfortable with purchasing a new car right now because its the worst thing one can do with one's personal finances, high income people can still afford to buy new cars because their incomes are so high as to be able to afford all of the necessities of life while still having slush money for luxuries like german imports. In short responsible people (with their money) don't buy $40k + luxury cars, thats the last thing I would buy if I were a middle income person watching my pennies and investing.
Rick 4:37PM (7/05/2008)
FSM: Exactly. The rich got richer and well, the middle class took a step to being classified closer to the lower class. I don't see this trend reversing itself in the years to come.
Cary 2:46AM (7/07/2008)
I concede some of that. Good point Flying Monster.
Rolle 8:18AM (7/06/2008)
"Everyone" (has taken a hit)? I don't think so...Honda, Hyundai, Jaguar(!), Kia, Mazda, Mercedes, Mini, Nissan, and Subaru all showed healthy sales INCREASES. That's not a fluke. Those with quality product suited to the market won.
Those with owerweight, novacaine injected, totally americanized cars that induce sleep while driving such as the continually devolving Toyota brand (Toyota -6.3%, Lexus -19.6%, Scion -7.9%) get what they deserve during choppy times....sales declines.
My 2nd car was a Toyota Corona Mark II. Toyota healped start the small efficient car market in the US...but long long ago they lost their way and went mainstream, and became simply a quality replacement for the totally lacking Chevy or Ford proiduct.
A good wakeup call (for them and others) if you ask me.
Vincenzo 11:36AM (7/06/2008)
Actually, it's only the US Toyota that shows bad sales.
Toyota must fire all their American bosses who had approved monstrous Sequoia and Tundra instead of the next generation Celica.
In Australia Toyota still produces tiny Land Cruiser 70. It's SUV but the sales are record high.
http://www.toyota.com.au/landcruiser-70-series
Nevertheless, Toyota is preparing two new variants of Prius for the 2009 Detroit auto show.
http://www.caranddriver.com/reviews/hot_lists/car_shopping/green_machines/2010_toyota_prius_car_news
G-Meister 11:54PM (7/06/2008)
Vincenzo- Press has left the building (a while ago)
whofan 3:22PM (7/05/2008)
The well to do people have to learn that the little guy needs money too. Somebody somewere is making a killing and cutting their own throat while their at it.
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why not the LS2LS7? 3:39PM (7/05/2008)
Toyota is doomed. They need to stop relying on huge SUVs and eliminate redundant brands like Mercury and Pontiac. Otherwise the imports are just going to eat them alive.
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-blank- 4:18AM (7/06/2008)
AAHHHH! DOOOOMED!
Mommy I'm scared. What would the world be like with out the impressive performance of the pontiac minivan?!
inogenius 4:29PM (7/05/2008)
Was this a serious post?
why not the LS2LS7? 8:01PM (7/05/2008)
By mirroring what people say about the domestics to be about Toyota, I'm pointing out (poorly it seems) that the problem isn't domestic vs. import. It isn't a story of the genius of Toyota triumphing over the stupidity of GM.
The issue is that people's expenses are rising fast and they're doing everything they can to control them. That means buying cheaper cars that use less gas, if they buy anything at all.
This is hurting every company that makes cars, and it's hurting those that make large cars that were always nonsensical for most people (like the Sequoia) most of all.
-blank- 3:08AM (7/13/2008)
nope you're doing fine.
last time I read one of your comments many missed the sarcasm and i figured it fitting that you aren't left standing alone trying to bring a little light: both to the situation in the companies as well as the emotional atmosphere.
Robert 12:03PM (7/06/2008)
Mercedes is still selling because there are more rich people than ever. The rich are getting even richer! Mercedes is the premier brand for richies.
Philip 3:45PM (7/05/2008)
Yes Whofan a few greedy people are getting rich, while the rest of us suffer, I hope bad karma repays them.
Toyota will be Ok but other car makers will suffer much worse, and our people will suffer as well.
Id like to know why we are still burning imported oil when Brazil is totally self sufficient using Sugar based Ethanol, Its a totally different product to Corn ethanol, we were told lies about Corn ethanol, we should be using sugar based ethanol, its even cheaper than regular gas, It costs around 70 cents a gallon to produce, Maybe our Greedy Government and officials doesn't want this country to improve, They let the price of gas get out of control, they are to blame.
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Papi L-Gee 9:46PM (7/06/2008)
@ Philip (in case Autoblog's superb comment system strikes again)
Brazil produces MUCH more sugarcane than the US does, and for good reason: their climate is much more conducive to it than that of the US. They can pretty much grow it anywhere, whereas in the US sugarcane is mainly grown in four states.
In short, the US most likely can't produce enough cane to meet demand here, and if they were to import the ethanol from elsewhere, it would defeat the purpose.
Philip 3:50PM (7/05/2008)
Yes Cary I agree about responsibility, I am one of those people too, but now cars arent selling its affecting my life, and Ive been ressponsible all along, Im not the cause but I am paying the price.
Not everyone is irrisponsible although many are, we live by our means an dont over spend, but some are medically bankrupt, Believe me it can happen to you too.
Federal reserve, Fraud Scam, I couldnt agree more.
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