As sales slump, Toyota cuts bonuses and vehicle production
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]
Reader Comments (Page 1 of 2)
happy_penguin 7:20PM (12/02/2008)
Wow. I guess that's what happens when you build cars that nobody wants. :P
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Ligor 7:28PM (12/02/2008)
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
Mobius_1 7:34PM (12/02/2008)
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.
jv2k 7:51PM (12/02/2008)
Lexus is just a big dinosaur taking too long to turn around.
tekd 11:58PM (12/02/2008)
I miss the Supra and MR-2 as well =(
I drive a 5 year old Camry right now and thanks to the craptastic economy it looks like I'm going to keep driving it for quite a while. But the plan has always been to have a daily driver and then a more fun car.
So here's hoping that by the time the economy and my finances improve Toyota will have a new Supra, because I'll be one of the first to go and buy it. Or heck, if they improve that IS-F maybe I can just drive one car that does it all...one can only dream of a 2nd generation IS-F sportwagon!
GhostDoggy 7:18AM (12/03/2008)
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.
DippyDO 7:31PM (12/02/2008)
Hopefully Toyota will go belly up some day........We can ony hope!
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thedude3389 7:48PM (12/02/2008)
YOU can only hope. Not everyone is an idiot like you.
Bill E 7:56PM (12/02/2008)
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.
sw 8:58PM (12/02/2008)
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.
hyundaifans.com 10:38PM (12/02/2008)
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.
Gary 2:14AM (12/03/2008)
TheDude and Bill E,
I think DippyDO was poking fun at the people comment hoping that the domestics would go belly up some day.
MoonRover 8:12AM (12/03/2008)
I would love to see Toyota go out of business, and all you Toyota fanboys can kiss my American car loving @ss.
Sea Urchin 8:50AM (12/03/2008)
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.
jonathan35_99 5:47PM (12/03/2008)
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.
dinnercoat 7:43PM (12/02/2008)
The way I read it Toyota is still forecasting a profit, just a smaller one?
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rypt 7:52PM (12/02/2008)
Yup they are, sure beats the losses the Detroit 2.5 are making.
tankd0g 10:03PM (12/02/2008)
Cut bonuses to management when the company is still making money? Wagner laughs in your general direction!
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Maggie 10:17PM (12/02/2008)
Sorry...This should be the reply to the blog above.
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AngeloD 10:54PM (12/02/2008)
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.
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