Filed under: Toyota, Earnings/Financials
Toyota struggling to meet global sales, profit targets
The auto market is in the tank right now, with sales dropping to 1991 levels and Detroit automakers in a cash crunch of horrendous proportions. Even Japanese automakers are struggling, and perhaps the biggest sign that something is terribly wrong is that Toyota is even feeling the pain. The Japanese automaker's sales dropped by an incredible 32% last month compared to September 2007, which was preceded by drops of 9.7%, 18% and 11% in prior months. Toyota has already lowered its global sales target for the year to 9.5 million units to reflect the trouble it's experiencing in the U.S. market, but recent news from Europe is that production is being cut there, as well.The worst news for Toyota would likely be welcome news to the rest of the automotive universe: the Japanese juggernaut will only rake in about $12 billion of profit this year. While that's an absolute treasure trove of cold, hard cash, it's about 40% less than Toyota had earlier forecasted. Toyota's stock has also taken a hit during these challenging times, with its current value down about $23 per share under its 52-week high of $58.76. The worst part about the automotive market is that there appears to be no end in sight, which means there is more bad news to come; even from Toyota.
[Source: Automotive News, sub. req'd]
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Reader Comments (Page 1 of 2)
OKC08SKYRL 7:48AM (10/09/2008)
Bringing back the Supra would certainly have me looking at Toyota.
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Big Rocket 12:54PM (10/09/2008)
Better yet, bring back a mid-engined MR2.
Bob 7:51AM (10/09/2008)
A sign of the apocalypse has to be Toyota now offering 0% financing. Scary times.
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J M C 3 7:54AM (10/09/2008)
they'll have to develop more affordable small cars.(Like IQ)
people will eventually have to replace cars with what little money they'll have to spend.
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Ayatollah Rodriguez 8:45AM (10/09/2008)
NO, what they need to do is improve and fix current cars.
Imagine Corolla, 1K lower in price, more tech options, and 7-8 MPG more. That would fix all their problems.
soul7963 9:16AM (10/09/2008)
@Ayatollah Rodriguez
I don't know if you read the article but it mentioned Toyota making a profit!! Granted it was only a tiny amount at $12 billion but it's better than nothing.
The reason they are the most profitable manufacturer is because they don't discount there cars below what they cost or add toys which add to the bottom line cost for them. Maybe GM et al could learn from that.
anoldbikeguy 8:48AM (10/09/2008)
Toyota sales in the dumpster - no surprise to me.
The reason their sales are declining much more than their competitors? Maybe people are finally waking up to the facts:
Their quality reputation is no longer relevant to their current lack thereof.
They do not have the best fuel economy in almost every segment.
Their products are dull and boring looking (compare the latest Madza3 to the Corolla), almost anything else with the exception of the godawful looking Accord in the mid-size segment to the Camry.
And vehicle dynamics? Big YAWN!!
It's about time!
BTW, Chevy sales alone were higher than Toyota and Lexus combined last month!
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Temple 9:01AM (10/09/2008)
Or it could be the just global meltdown you see on TV. Seriously, EVERY car company, as well as most businesses, are struggling to meet sales and profit targets this year.
Its insane Toyota can still rake in $12 billion in profits this year when the Big 3 are asking for $25 billion loan from taxpayers between the three of them.
Shipey 9:08AM (10/09/2008)
@Temple
The loan is available to all automakers building cars in the US, including Toyota.
rooster 9:29AM (10/09/2008)
The Japanese government has been giving 0% loans to their manufacturers for about a decade.
Don 9:21PM (10/11/2008)
lol
There's always "that guy" who talks out his keister.
a) Toyota still made a $13 billion dollar profit.
b) Toyota's quality is still tops on the planet.
c) Toyota has HUGE cash reserves. HUGE.
I love it when the "domestic boyz" come out of the woodwork when they've really got nothing to say at all.
Crackberry Addict 9:44AM (10/09/2008)
maybe they'll make their interiors of even cheaper plastics to make some profit!
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Avinash machado 10:09AM (10/09/2008)
With that 12 billion profit alone they can buy GM,Ford and Chrysler. Imagine if they did that. It would be one of the greatest takeovers in history.
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John 12:31PM (10/09/2008)
It will never happen. Why would Toyota want to inherit all those UAW plants (and contracts) and redundant engineering facilities? The entire industry is down and Toyota is suffering some of those effects.
Toyota is doing just fine and only needs minor tweaks.
ROIX 10:51AM (10/09/2008)
I am still wondering about Toyota sales. I do not see any advantages to other Japanese and see a lot of disadvantages to European cars. Payback time is coming.
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mc959 11:52AM (10/09/2008)
We speak again next year, this year Toyota had only 1 new model for europe, for next year there are 14 new models(some of them are facelifts) coming to the showrooms, this will boost the sales, so no worry, be happy!!!
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Aviationbuff 12:09PM (10/09/2008)
toyota in the dump haha. Time for GM to retake the market with the VOLT, CRUZ, and the CAMARO.
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Dennis 1:44PM (10/09/2008)
Ya people are waking up, what a laugh, and buying what, American. Get it through your thick head, Americans can no longer compete in the world automotive market. They dont have the dedication nor the dedicated work force, aka union, UAW aka United Against work.
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herosp 2:16PM (10/09/2008)
haha... poor toyota, will have to do with only 12 billion in profits... Autoblog should mentioned how much are big 3 supposed to bleed this year?
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tekd 7:45PM (10/09/2008)
Pretty much every single auto manufacturer would kill to "only" make $12 billion this year.
Whatever will they do with a mere $12 billion, lol. The number only seems small compared to the insane losses everyone else racks up and the insane economic meltdown.
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