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Recession Hits Toyota

By Alan Stewart Carl | Related entries in Business, Cars

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Unless we think U.S. automakers are alone in their troubles, Toyota announced today that it will see its first ever operational loss this year and has lowered net profit expectations to just $555 million. The company had initially projected a net profit of $13.9 billion.

Toyota has been hurt by the financial crisis as well as by the soaring value of the yen which has cut into overseas profits.

For anyone whoâ€™s heard of the foreign cars piling up in U.S. ports, this news is unsurprising. But it does give more context to the severity of the current recession. Itâ€™s not a good sign when a nearly 70 year-old company posts its first ever operational loss.

This entry was posted on Monday, December 22nd, 2008 and is filed under Business, Cars. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Recession Hits Toyota”

Jimmy the Dhimmi Says:
December 22nd, 2008 at 9:17 am
Time to bail them out. Think about how many industries are dependent of Toyota. Think about the workers in the Toyota plants across the South-eastern USA.
blackoutyears Says:
December 22nd, 2008 at 11:28 am
I also saw this morning that they’re delaying the opening of the Mississippi Prius plant. Looks like low gas prices, the effects of recession on even the hardiest of manufacturers, and the inability to price hybrids affordably is going to make Obama’s push for green cars that much more unlikely in the next few years. What’s the record for perfect storms?
kranky kritter Says:
December 22nd, 2008 at 12:15 pm
I’m happy to bail Toyota out of its excess inventory problem. Let the discounting begin. How does 20% off sound? I know, not as good as 30%.

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