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Toyota Says Company Is ‘Grasping for Salvation’

Harshaw

Harshaw

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Toyota Says Company Is ?Grasping for Salvation? (Update1) - Bloomberg.com

Oct. 2 (Bloomberg) -- Toyota Motor Corp., the world’s biggest automaker, is “grasping for salvation” as it predicts a second straight annual loss, President Akio Toyoda said.

“We have to listen to our customers and make better cars,” Toyoda said in a speech to journalists in Tokyo today. The 53-year-old grandson of Toyota’s founder became president of the Toyota City, Japan-based carmaker in June.

The automaker is one step away from “capitulation to irrelevance or death,” Toyoda said, citing a study of how companies fail. Toyota has forecast a record loss of 450 billion yen ($5 billion) in the year ending March after the worldwide recession pummeled car demand.
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Had no idea the president of Toyota was named "Toyoda." Why not . . . "Toyota"?

I'm sure all this will come as a surprise to many. Looks like GM isn't the only dinosaur flailing in the tar pit.
 
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Given the size of that loss, it doesn't look good. Especially when all the cash and cash equivalents they got is $2.187 billion. Current assets are a bit over $11 billion. $2.6 billion long term debt coming due next year.

They can survive this if they are willing to make cuts. It's not like they are at GM level yet.

TOYOTA MOTOR CORP (TM): Financial Statements - BusinessWeek
 
Toyota will survive, but they are doing, and going to have to do more of things they don't do. As one example, having a job at Toyota used to mean having a job for life. They are now having to actually lay people off permanently, just to survive, which is not making either management or the employees happy. I think though that Toyota's willingness to do what it takes to get through this will work for them, and that they will survive.
 
Redress said:
Toyota will survive, but they are doing, and going to have to do more of things they don't do. As one example, having a job at Toyota used to mean having a job for life. They are now having to actually lay people off permanently, just to survive, which is not making either management or the employees happy. I think though that Toyota's willingness to do what it takes to get through this will work for them, and that they will survive.
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You are probably correct that Toyota will survive but I would bet that at some point during the past couple of decades virtually the ame thing was said about GM. Yes I do anticipate that you will point ouit that Toyota does not have the achors around it's neck that the great GM had but .... vee shall see..
 
Now weren't there some people who said the American carmakers were the biggest idiots (greedy crooks screwing the unions and American public), and now we see the biggest of them all doing the same exact thing?
 
American said:
Now weren't there some people who said the American carmakers were the biggest idiots (greedy crooks screwing the unions and American public), and now we see the biggest of them all doing the same exact thing?
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The big problem with both has been poor management. I think Toyota will react faster and better. Toyota is only the biggest as of this year, and that because GM was even more poorly managed.
 
Damn it! We were planning to buy a Toyota Highlander Hybrid this year. :(

I love my Camry.
 
This is very interesting, considering that Toyota's business model was considered revolutionary and pretty much impenetrable. I actually had no idea they were doing this bad.
 
aps said:
Damn it! We were planning to buy a Toyota Highlander Hybrid this year. :(

I love my Camry.
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Go ahead and buy it, Toyota isn't going anywhere.
 
There is a political battle going on internally in Toyota, hence the gloom and doom. In reality it is one of the most healthy car companies out there. Yea it has lost money.. for the first time in decades.. I doubt a few quarters of loosing money will break the bank so to say.
 
Toyota Highlander Hybrid--here I come.

American, we can make out in the back seat. ;)
 
aps said:
Damn it! We were planning to buy a Toyota Highlander Hybrid this year. :(

I love my Camry.
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Your Camry was probably made down the road from me in Georgetown, KY !! :2wave:
 
I hope they stay afloat, Toyota makes a damn good automobile.
 
American said:
Now weren't there some people who said the American carmakers were the biggest idiots (greedy crooks screwing the unions and American public), and now we see the biggest of them all doing the same exact thing?
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How was Toyota doing the same thing?

Does Toyota (and Honda) have the same pension problems as the Smaller Three?

Does Toyota (and Honda) have the same union problems?

Does Toyota (and Honda) have the same manufacturing and design process problems?

Does Toyota (and Honda) have the same type of car problems?

Does Toyota (and Honda) have the same lack of diversification problems?

When your major market drops 41%, it's hard to not take a beating independent of anything else.

It helps to know what you are talking about before posting.
 
Redress said:
The big problem with both has been poor management. I think Toyota will react faster and better. Toyota is only the biggest as of this year, and that because GM was even more poorly managed.
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Not to mention that Toyota probably has significant foreign cash reserves that aren't recognized on its SEC filings. If necessary, it will spend them. The Smaller Three don't have that kind of money.
 
obvious Child said:
How was Toyota doing the same thing?

Does Toyota (and Honda) have the same pension problems as the Smaller Three?

Does Toyota (and Honda) have the same union problems?

Does Toyota (and Honda) have the same manufacturing and design process problems?

Does Toyota (and Honda) have the same type of car problems?

Does Toyota (and Honda) have the same lack of diversification problems?

When your major market drops 41%, it's hard to not take a beating independent of anything else.

It helps to know what you are talking about before posting.
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I don't know about that, but I do know that Toyota just recalled 3.8 million vehicles after a family was killed in California.

And last week, they announced the recall of 2000 & 2001 Tundra pickups for possible corrosion and brake failure problems.

So, they are not without significant problems.
 
Gill said:
I don't know about that, but I do know that Toyota just recalled 3.8 million vehicles after a family was killed in California.

And last week, they announced the recall of 2000 & 2001 Tundra pickups for possible corrosion and brake failure problems.

So, they are not without significant problems.
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Aside from maybe wood toys that get no chemical treatment, it's hard to find a manufacturer of anything that doesn't have these problems. That said, Toyota and Honda don't have the problems that the Smaller Three have.

I never really paid that much attention to most recalls, considering that the companies recall mainly to avoid future lawsuits when the possibility of that things going wrong is remote. The recent recall I believe was on the driver seat mat pads. Now, if you're not an idiot, you won't let those bunch up causing the problem. But Toyota recalled them anyways. It's more fear of being sued rather than actual problem. Same goes for the other manufacturers. But in terms of reliability, Toyota and Honda are far ahead of GM and Chrysler. Not so much Ford after Ford spent basically the bank to close the gap.

Toyota derives an excessive amount of money from technology and patent licensing and Honda makes all kinds of things that use motors, from cars to lawnmowers. The Smaller Three don't have that kind of diversification. And we all know that Toyota and Honda don't have the union/pension problems that have put Detroit on its deathbed. Furthermore, from design to production, the timetable for Toyota and Honda is far less than the Smaller Three.

Toyota's biggest problem is that its main market saw 41% fall out. That's hard to deal with no matter what industry and what practices you do.
 
obvious Child said:
But Toyota recalled them anyways. It's more fear of being sued rather than actual problem.
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Tell that to the family of four that were killed by this "actual" problem. The driver was a State Trooper, so I seriously doubt he was a "stupid" driver.

and it appears that Toyota has been trying to silence whistle blowers:

The automaker could be in for an even worse time if it can’t find a way to shut down attorney Dimitrios Biller. He’s the former national managing counsel who oversaw the company's National Rollover Program from 2003 to 2007. Now he's a whistle-blower claiming the Japanese giant has been hiding potentially damning evidence that should have been provided to owners who’ve sued the company over allegedly defective products.

Toyota has tried to place a gag order on Biller and to paint him as a disgruntled former employee with a history of suing his employers. But last week, a federal judge in Texas issued a temporary restraining order to keep the carmaker from destroying any evidence regarding the crashworthiness of its vehicles.
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Toyota's reputation takes a pounding - The Driver's Seat- msnbc.com
 
Gill said:
Tell that to the family of four that were killed by this "actual" problem. The driver was a State Trooper, so I seriously doubt he was a "stupid" driver.
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Want to compare that to the total number of people who drive that car without a problem? Furthermore, it doesn't matter what your job is. You can still be a stupid driver. Ever ride with a Cop? I'm guessing not.

Do you know just how many 2007-2010 model year Toyota Camry, 2005-2010 Toyota Avalon, 2004-2009 Toyota Prius, 2005-2010 Tacoma, 2007-2010 Toyota Tundra, 2007-2010 Lexus ES350 and 2006-2010 Lexus IS250 and IS350 there are out there?

3.8 million cars recalled.....for accidents of 102 since 2004. Really. Are you seriously trying to argue that I'm wrong here? That's a bit over 20 a year. For 3.8 MILLION cars.

You do realize that this is very similar to the whole crib recall fiasco? One kid gets killed and they recall millions of cribs despite months and years of no problems.

You are getting further and further from the original subject.

How does Toyota have the same problems as the Smaller Three?
 
American said:
Now weren't there some people who said the American carmakers were the biggest idiots (greedy crooks screwing the unions and American public), and now we see the biggest of them all doing the same exact thing?
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Those people were utter fools...The cause of this recession/depression was said to be greed; I think this was true.
The greed of tens of millions can be devastating.
But people did not suddenly become greedy..
 
Gill said:
I don't know about that, but I do know that Toyota just recalled 3.8 million vehicles after a family was killed in California.

And last week, they announced the recall of 2000 & 2001 Tundra pickups for possible corrosion and brake failure problems.

So, they are not without significant problems.
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I think most car companies have significant problems. Two in a decade is not that bad, in my opinion.
 
Gill said:
Your Camry was probably made down the road from me in Georgetown, KY !! :2wave:
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It's a 1994 Camry. Were you living there back then? :2wave:
 
aps said:
It's a 1994 Camry. Were you living there back then? :2wave:
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Yes I was. I did a lot of work at that plant in 1998. It's a beautiful plant. You could drop food on the floor and pick it up without getting dirt on your sandwich. :lol:

It's a huge contrast to the two Ford plants here in Louisville. They are both extremely dirty. If you aren't driving a Ford, you aren't allowed on the property, so we had to walk at least 1/2 mile because I was in my Chevy Blazer. No such restrictions at the Toyota plant.
 
EgoffTib said:
I think most car companies have significant problems. Two in a decade is not that bad, in my opinion.
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Toyota has had many more recalls than just these two. There have been dozens since 2000. This is just the largest.
 
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