Toyota could lose $1Billion +

[SVT666]

Report: Toyota could lose more that $1b during second half of fiscal year

When the Big Three CEOs appeared before a Congressional board earlier this month, many of the government representatives implied that if Ford, Chrysler and General Motors simply ran their businesses like Toyota, there would be no need for a government bailout. However, a new report indicates that Toyota could be in some hot water of its own, with plenty of red ink staring the Japanese automaker in the face.

According to a report first published by Asahi, Toyota ? the poster child for profits within the automotive industry ? could lose $1.1 billion during the second half of its fiscal year. In all, the losses from October to March could reduce Toyota?s full-year profits by more than 80 percent.

In addition to collapsing sales ? Toyota?s U.S. sales were down 34 percent last month ? the company is also fighting the strong value of the yen. During 2008 the yen gained 23 percent against the dollar and 34 percent against the euro, according to Bloomberg. Because of the strong value of the yen, sales in other regions are shriveling up by the time they return home to Japan.

Toyota announced in November that it expects operating profits for the current fiscal year to decrease by 74 percent, totaling 600 billion yen. That updated prediction was off 63 percent from the automaker?s original forecast from earlier in the year.

[Rich]

1 billion/ 2 quarters?  The US companies are losing billionS of dollars PER quarter, and they don't have the cash reserves Toyota does

I think it's funny that even with the losses, Toyota will still have a profit for the fiscal year.

[SVT32V]

Perhaps you will find it even funnier that Toyota just announced that it will lose nearly $2 billion for the year.
http://www.bloggingstocks.com/2008/12/22/toyota-to-lose-1-7-billion-in-2008-first-time-in-70-years/
So much for having a profitable year.

With the Yen getting so strong the JP automakers are in for a tough time like the mid-90s.

Even with the cushion (dollar against the Yen) that the transplant factories provide, they will still be bleeding.

[Morris Minor]

Maybe the Japanese government should follow the lead of the Americans & just print some more money to bail them out

[3.0L V6]

Maybe the Japanese government should follow the lead of the Americans & just print some more money to bail them out

They already did that for their banks in the 1990s. Japan's interest rate has also been near 0% for a while now, so I guess we're just following in their footsteps. The next thing we'll do is a big public works spending spree just like they did in an attempt to prop up their economy.

[SVT32V]

They already did that for their banks in the 1990s. Japan's interest rate has also been near 0% for a while now, so I guess we're just following in their footsteps. The next thing we'll do is a big public works spending spree just like they did in an attempt to prop up their economy.

It does appear that we are borrowing the JP strategy, sadly, it didn't work out too well for them.  Their economy has never really recovered since then and their GDP growth rate has been very poor.

Nothing like repeating history, good thing we have a new administration that is so well educated and worldy.