REPORT: Toyota sees U.S. turnaround in sight, plans to boost production
Auto sales in 2009 have been a real stinker, but companies are starting to feel a bit more bullish about the immediate future of the industry. Earlier this week, Ford announced that it was bumping Q3 production by 10%, and now Toyota is getting more aggressive still by adding 65,000 units to its Q2 quota. The Aishi, Japan-based automaker plans to add production to its most popular models. The Camry, Corolla, Sienna, Tundra, Tacoma and Rav4 are all going to see more action during the summer months.
Part of the reason for Toyota's optimism is due to the Japanese automaker's May sales. On the surface, sales were putrid, with a decline of 40% versus May 2008. But last May 2008 was a far better month for Toyota than it was many of its competitors, making the 40% figure a bit misleading. Toyota's sales actually increased by 21% when compared to April 2009.
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Reader Comments (Page 1 of 2)
jjpjppjpjpj 9:43AM (6/04/2009)
Wow this must have come from the White House, its stinks like one of Obama's press releases. Here is the real reason:
GM and chrysler have been knocked out and bought by the government - GM in particular was numero uno (maybe numero two-O)
Toyota, like Ford, hope to gaiin market share and put the final stake in the coffin. Them like me, think nobody with a brain will by a car from those two until the government and that socialist ass get their noses out of it!
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Dondonel 9:48AM (6/04/2009)
I would lease a car from GM, if I needed one. Can you explain what is so stupid about it?
BigMcLargeHuge 9:51AM (6/04/2009)
Now tell us what you really think. j/k =)
It is true that this is probably capitalizing on GM and Chrysler closing dealerships.
Upping Tundra production is a key indicator that you're right about that part. Demand for trucks isn't going up, its just shuffling around.
No Chevy or Dodge dealer in small town USA? Then you're probably going to choose between a Toyota or Ford truck. Simple.
Same can be said for the other cars, but trucks are a tell-all by their actions, IMO.
John P. 9:56AM (6/04/2009)
You pretty much said what I was thinking when I read this. Toyota's going to be in good shape as long as they can keep the union out of their factories. BO is working on stinking up that part, so I predict Toyota will be pulling all factories out of the USA if he gets his way.
Ford on the other hand is in the awkward position of having employees working for them, that actually own a large piece of the competition (GM and Chrysler). Talk about a conflict of interest.
Strange times we live in.
Rich 10:19AM (6/04/2009)
John P. and the others: you really don't get it, do you?
If GM and err... the other one had been allowed to fail "naturally" without government help, they would be already in bankruptcy; would have been for six months or more; and wouldn't be seeing any light at the end of the tunnel.
Along with them, the suppliers would be done for. Ford would be filing for bankruptcy now at the latest. And Toyota would certainly be pulling out of U.S. manufacturing; not possibly, sometime in the future.
As for "conflict of interest", Ford's workers may be members of an organization that owns another organization that owns part of the domestic competition. That's sufficient separation. Or were you suggestion we move away from a free market economy? Sounds like communism to me.
As for the comments from the guy who started this thread: the government did not "knock out" any companies. Suggesting so just makes you sounds as stupid as your name.
Rick 10:32AM (6/04/2009)
It stinks more like your post actually.
kimosen 10:47AM (6/04/2009)
Actually, the UAW won't own ANY of General Motors.
The stock held by the UAW is controlled by the VEBA - and will be used to fund that program. Therefore the UAW maintains NO control over General Motors, because they own NONE of its stock, the VEBA does (which is a separate entity).
The VEBA is interested in one thing: Money. Even if they did control any amount of GM, they would be interested purely in making sure that they were able to continue funding for UAW retirees. This puts the VEBA's interests at odds with the UAW, who want higher wages for current workers. It goes without saying that the VEBA would preferr lower ones - higher profits = better returns for stock.
It's just not that complicated.
John P. 11:04AM (6/04/2009)
The UAW has no control of GM? Bwahahhahahahahahaha GM is a freaking Retirement benefits company thanks to the Unions. They haven't been in the car business for years. Now I'm not saying GM management doesn't deserve some of the blame for that, but,... seriously.
As far as Bankruptcy? GM and Chrysler should have been allowed to fail without the bailout. That 30-50 billion of whatever money is gone, and I would venture to say a vast majority of it is not in the hands of parts suppliers and product development, but in union coffers. How does that money allow GM to make better cars again?
Mr.Oak 1:27PM (6/04/2009)
jjpipipip or whatever: You are a complete idiot. Why is it a sin for our government to act in out national interest. The capitalist ideologs have raped and plundered this country in the name of making a buck, then had to crawl to said evil socialist government to save their asses.
Remember Newton's laws? Specifically #3: To every action there is an equal and opposite reaction.
The Barons of Wall St. blindly pushed for companies to export jobs as a means of efficiency. Well the dog has caught up with his tail. No jobs in America, means no one will be able to buy the crap that the companies make, pay their credit cards or mortgages etc. That my friend, is the "equal and opposite reaction."
I for one don't believe in a pure socialist society, but do believe that a government has an obligation to act on behalf of its citizens. Of course the barons are pissed, lots of lawyers and corporate raiders stand to lose money because GM & Chrysler didn't disappear. The mere thought of that was heart warming.
BTW: There is no such thing as a pure Capitalist society. It is a figment of your imagination.
National Parks, Public Hospitals, Public Schools, Fire Departments, Police Departments, Public Libraries are all socialist components of society that we all embrace.
eatpusy 9:57AM (6/04/2009)
Or is the real reason that Toyota is just pullin' a GM--realizing it may be better to keep the ball rolling, paying your employees to build cars/trucks that will be sold with cash in the trunk rather than just paying them to sit idle or do crossword puzzles, er, sudoku?
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Rich 10:10AM (6/04/2009)
I see Toyota's following Ford on this one.
By the way Chris: it's not that they see a U.S. turnaround. It's that they see a Toyota turnaround. I can see that, and I'm neither a journalist nor a economist. Remember how Toyota *cut* production a few months back? Remember the talk of Toyota City turning into a ghost town?
216 10:00AM (6/04/2009)
Even though I plan on buying a Ford as my next vehicle, I would still consider a Pontiac G8, Chevy Malibu, Chevy Camaro, Equinox, or Caddy CTS
can't say the same about anything that Dodge/Chrysler has tho
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jpm100 10:17AM (6/04/2009)
Don't sales always go up in the summer period vs. winter? I mean some quarter to quarter change (month to month) is normal which is why numbers are always quoted vs. a year ago and not last quarter or last month.
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Jared 10:26AM (6/04/2009)
The sales numbers being quoted are comparing May 2008 versus May 2009.
tekd 2:40PM (6/04/2009)
What they mean is that Toyota's 40% drop from May 2008 to May 2009 looks worse than Ford/GM's drop because Ford and GM had utterly horrifying numbers last May when their sales ground to a halt because of $4 a gallon gas. Since their biggest sellers are the F-150 and Silverado their May 2008 numbers were awful, whereas Toyota had better May 2008 numbers because they partially made up for lost SUV/Truck sales with their biggest sellers like the Corolla getting more sales. So Toyota's drop looks bigger because they did better last year, not because they're doing worse than the other car companies.
Thus while the 40% drop over last year looks really, really, really, bad, it's only really bad since the numbers are actually improving quite a bit month over month. They're probably doing similarly well as Ford overall even though the numbers make things sound more dire for Toyota than for Ford.
Carlos 10:23AM (6/04/2009)
They need to have a plan to make more exciting cars!
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Zamafir 10:34AM (6/04/2009)
No. They don't. Americans buy a very small percentage of exciting cars. Toyota stopped trying years ago.
PJ 12:22PM (6/04/2009)
Sad, but true. Ever since "fun to drive" began to mean "I sit up high and look big," mainstream buyers' concept of what "fun" is in a vehicle has been more and more divorced from the actual driving experience. I only see that trend continuing as buyers' interests are transferred onto tech features (i.e. SYNC, in-car Web) and alternative fuels.
How 'bout this for a deal, Toyota--you make your boring cars, but give Lotus a break on your engines so I can afford an Elise.
DayShifter 10:57AM (6/05/2009)
Americas love for the automobile died long ago!! Exciting will be a niche market, seems like most people don't care what the car looks or feels like, as long as it's safe, handles decent, good gas mileage, and will last.
Avinash machado 10:30AM (6/04/2009)
Will many truck buyers buy a Tundra instead of a Silverado or Ram? If they are worried about buying from a bankrupt company, they could buy a F-150 instead. The domestics still make the best trucks.
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