• Dec 2, 2008
Management bonuses will be slashed 10 percent at Toyota as a result of the global economic slowdown. About 5,000 managers will take cuts as the Japanese automaker reels from falling global sales that are hitting its local market hard. Toyota vehicle sales in Japan dropped 27 percent in November (excluding 660cc minivehicles) and Lexus sales dipped 24 percent -- mirroring the same sales issues that both brands are having in the United States. As a result, the Japanse Juggernaut will halt production for two days on one of the Tahara production lines manufacturing the Lexus LS, GS and IS models, which will prevent about 5,000 luxury cars from being built, and idle another factory in southern Japan for two days, as well. Toyota is also expected to announce lower sales and production estimates at its year-end press conference that happens at the end of this month. That news will follow the 1 trillion yen ($10.7 billion) yanked just last month from its annual operating profit forecast.

[Source: Automotive News, subs. req'd]



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  • 29 Comments
      • 6 Years Ago
      Hopefully Toyota will go belly up some day........We can ony hope!
        • 6 Years Ago
        You need to see a pschiatrist. Dont you think american workers have lost enough jobs. Just because you hate Toyota for being successful does not mean that you you should wish its death.
        • 6 Years Ago
        If Toyota goes, GM, Ford, VW and any other manufacturers would more than likely fail first. Careful what you wish for, you just might get it.
        • 6 Years Ago
        TheDude and Bill E,

        I think DippyDO was poking fun at the people comment hoping that the domestics would go belly up some day.
        • 6 Years Ago
        Exactly, what a dumb thing to say. Everyone on here is an enthusiast, so of course most of us aren't turned-on by Toyota products. They build quality, reliable cars for the average consumer.
        • 6 Years Ago
        I would love to see Toyota go out of business, and all you Toyota fanboys can kiss my American car loving @ss.
        • 6 Years Ago
        Hey, that's 25 Billion...stop making stuff up.

        How dare you accuse Wagoner and co of asking the taxpayer for additional 9 billion + 25 Bush already gave them thru Department of energy of Energy.

        According to you the industry asked for 59 Billion dollars................that can't be....................on the other hand.
        • 6 Years Ago
        Speak for yourself. You must be a domestic fan. If things get bad enough for mighty Toyota to go belly up, then the "Big 3" would certainly not even be in existence.
      • 6 Years Ago
      @Gary +100
      • 6 Years Ago
      This points out the abysmal record of incompetence of Toyota's management team in concentrating on producing gas-hog pickup trucks and large SUV's such as the Blundra and Sequoia.

      The Toyota management team should be forced to resign.

      The new management team should eschew the use of any and all aircraft to get to meetings here in the US, and instead use native canoes and tramp steamers moving from island to island to cross the vast reaches of the Pacific.
        • 6 Years Ago
        Rick Wagoner's wage? I've heard rumours of $40 million. Now stories of $20 million. You'd be closer if you lop off a zero. Look at the bottom of page 31:

        http://www.freep.com/assets/PDF/1202gmplan.pdf

        Why do I bother posting? I'm sure someone will generate a negative spin/angle/rebuttal on this anyways. :-)
        • 6 Years Ago
        You will not hear much about this in the media, they love to give the impression that the American cars are the only ones not selling. The FACT is Toyota and Honda are asking the Japanese government for loans just as Detroit is doing.
        • 6 Years Ago
        Must be difficult to post while crying.
        • 6 Years Ago
        Well, considering that they're still profitable and that their CEO already makes like 1/20th what Wagoner makes and now everyone is foregoing bonuses, I'd say that this actually shows what a competently run company with loyal workers can do. Since Toyota doesn't layoff full-time workers, the people whose bonuses are being cut are likely to be pretty damned loyal to Toyota and very unlikely to leave. But then again only a moron would jump ship to the Big 3 at this point.
        But I guess the idea of a company's upper management actually being paid reasonable salaries and still being willing to give up money to keep the company going is something that is unfathomable to people used to Wagoner's ingenious brand of "leadership"-you know, the kind where you make $20 million while your company bleeds money to death, then hop in a private jet to go beg for taxpayer money. I'm sure Toyota really has a lot to learn from GM about management right?
        • 6 Years Ago
        you do know gas is below 2 dollar for a while now, right?
        • 6 Years Ago
        Tekd,
        How does Toyota's policy not to layoff fulltime employees differ from job banking? How do the salaries of the Big-3's management compare to that of their peers in the Fortune 500 companies?
      • 6 Years Ago
      The ISF needs to go on a visual diet, that thing looks horrible...
      • 6 Years Ago
      Dear Autoblog Staff:

      Why did you not do a funny Photoshop job of the Toyota logo in this story?

      You put a lot of work putting a negative spin on the logo in these stories:

      http://www.autoblog.com/2008/12/02/gm-asks-congress-to-kickstart-its-heart-with-ambitious-plan/

      http://www.autoblog.com/2008/12/02/chrysler-plan-to-congress-requires-7-billion-in-aid-to-ward-off/

        • 6 Years Ago
        So true! The negativity towards the North American auto makers on this blog is absolutely horrendous.
      • 6 Years Ago
      Glad to see that Toyota is able to put these actions into place to ensure that they remain profitable and ensure that they don't end up like the big three. Why continue to give large salaries and bonuses when they should be conserving money for a long a bumpy ride that is affecting everyone. Ensure that the company is viable and that employees still have their jobs. However, I do feel bad for the contract employees that they laid off but all car manufactures use them and cut them first.

      People can hate Toyota and Honda all they want for being boring applicances but GM, Ford and Chrysler only wish they can be in their shoes right now......profitable.
      • 6 Years Ago
      Wow. I guess that's what happens when you build cars that nobody wants. :P
        • 6 Years Ago
        LMAO

        well, i guess this is what happens when the market is saturated

        it's almost like the auto industry was banking on every person buying a new car every 3-5 years
        maybe they should build cars that make them a profit without any grouth, then if they do need ot produce extra - it just addds to the bottom line

        I worked in the pharmaceutical industru first and there any new drug must have a break even point of 2-3 years and then have a return of at lest 20% for it to even be considered something the company likes to take on

        it seems the auto industry does not run it's business that way
        • 6 Years Ago
        Lexus is just a big dinosaur taking too long to turn around.
        • 6 Years Ago
        At least they are not show-boating to Washington D.C. to beg for US$34 Billion because no one will buy GM, Ford, or Chrysler products.
        • 6 Years Ago
        Toyota (and Lexus) make some very good cars, but that's it, they are just transport, and the only one right now which comes close is the IS-F. I miss the Supra and Celica and MR2 etc.
      • 6 Years Ago
      The way I read it Toyota is still forecasting a profit, just a smaller one?
      • 6 Years Ago
      It just goes to prove the obvious point which the media seems to have missed in their articles about the U.S. automakers; that sales were going to go down in this economy regardless of how well your company looked to the future. In other words, some of the Big 3's problems aren't their fault.

      Yeah, Toyota and Honda have lost less sales than GM and Chrysler, so there is some culpability for GM and Chrysler, but it looks like everyone was going to lose at least 30% of their sales regardless of what they did. Ford only lost about the same amount of sales as Toyota and Honda did last month, but that required much bigger incentives than the Japanese companies were giving.
      • 6 Years Ago
      you all fail to realize that asian automakers work very closely with their governments already. i won't say they are subsidized, but it is NOT pure capitalism. that's why it is hillarious to suggest that the US automakers are cheating by asking for help. check out how most of the asian companies were started, you might be in for a surprise, and you might think differently about the "level" playing field.
      • 6 Years Ago
      Wow, even sales of the Pious, er um Prius, were down 48% (according to the AP) and Camry sales were down only 29%.

      I didn't think that Pious sales were all that tied to gas prices, but more towards personal image and other apple-like factors.
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