Toyota Q4 profit dips 28%. Grim 09 Outlook - Team-BHP

amit · 8th May 2008, 17:23

I have always felt that one of the reasons why Toyota ignored the Indian market for so long was because they were too busy fullfilling booming demand for their cars in America.

Now, the American economy woes have caught up with Toyota.

2008 Q4 profit is down 28%.
2009 Sales expected to fall. A first for the company in 27 years.
2009 Profit expected to fall 27%.

Quote:

Like other major automakers, Toyota has been gradually switching its focus to China and other emerging markets.

Doesn't look like it from where we are.

Source: Yahoo News.

maxbhp · 8th May 2008, 17:54

Quote:

Originally Posted by amit

I have always felt that one of the reasons why Toyota ignored the Indian market for so long was because they were too busy fullfilling booming demand for their cars in America.

Now, the American economy woes have caught up with Toyota.

2008 Q4 profit is down 28%.
2009 Sales expected to fall. A first for the company in 27 years.
2009 Profit expected to fall 27%.

Doesn't look like it from where we are.

Source: Yahoo News.

Thats bad , but before I say anything more about their perfomance , I have to look at how others have fared ? Am sure its going to be same story for most of the manufacturer's . May not be to this extend though .

GTO · 8th May 2008, 19:14

Quote:

2008 Q4 profit is down 28%.
2009 Sales expected to fall. A first for the company in 27 years.
2009 Profit expected to fall 27%.

Mindboggling drop! I can attribute this fall to a couple of reasons:

1. Weakening US dollar (more important when compared against the Yen).

2. No.1 : Toyota's quest toward becoming the worlds number 1 car maker may have caused high discounts / price adjustments.

3. Slowdown in profitable pickup trucks / SUVs : American slump.

4. Corolla : How has the lacklustre new Corolla fared in the market? I have my doubts.

merve_extreme · 8th May 2008, 19:59

More than Toyota their money cow Lexus is getting a good thrashing in the US market.Sales are down pretty bad for a few months now,17% down for May.

highwayblaze · 8th May 2008, 21:20

All of the above and rising fuel prices have had a bad effect on their larger vehicles. Problems with the new Tundra camshafts and several thousand pick up trucks recalled in the last year have hurt their image a bit. A recent news article I read said that Toyota's used car sales are high whereas new car sales are plummeting.

iraghava · 8th May 2008, 23:58

Quote:

Originally Posted by merve_extreme

More than Toyota their money cow Lexus is getting a good thrashing in the US market.Sales are down pretty bad for a few months now,17% down for May.

Lexus sales are down despite having introduced the new IS, GS & LS within the past couple of years?? Surprising, very surprising. Most American magazines had been predicting that they would give a stiff fight to the German marques this time around with their new models, seems they got it wrong.

merve_extreme · 9th May 2008, 00:03

Quote:

Originally Posted by iraghava

Most American magazines had been predicting that they would give a stiff fight to the German marques this time around with their new models, seems they got it wrong.

Lexus car(suv's excluded) sales were never class leading,just that the RX sells in such huge numbers that it lifts the total Lexus division up.

For month of May BMW has overtaken Lexus as leading Luxury marque(SUV's included) in the US.

sujaylahiri · 11th May 2008, 15:20

Welcome to the club Toyota.

I guess Toyota should "officially" join the big 3 and make it the big 4 (in terms of declining profits).

GTO · 12th May 2008, 12:38

Quote:

I guess Toyota should "officially" join the big 3 and make it the big 4 (in terms of declining profits).

I wouldn't go as far with a statement. Anyways, there is only the big 2.5 now (Remember Chryslers sale) and Toyota does make more money than all of them combined.

Spitfire · 12th May 2008, 12:51

Q4 - 2008?? We are still in Q2 - 2008, right?. Is this some future prediction? Q4 - 2008 sales will be known only in Q1 2009 right?

merve_extreme · 12th May 2008, 12:59

Quote:

Originally Posted by Spitfire

Q4 - 2008?? We are still in Q2 - 2008, right?. Is this some future prediction? Q4 - 2008 sales will be known only in Q1 2009 right?

Its actually Q4 2007 Fiscal year.

Spitfire · 12th May 2008, 13:02

Quote:

Originally Posted by merve_extreme

Its actually Q4 2007 Fiscal year.

Oh

the main post needs to be edited then.

8th May 2008, 19:59	#4 (permalink)
merve_extreme Senior - BHPian Join Date: Apr 2004 Location: Mumbai Posts: 1,298 View My Garage	More than Toyota their money cow Lexus is getting a good thrashing in the US market.Sales are down pretty bad for a few months now,17% down for May. __________________ No one has done more to improve the automobile than the one who invented it ----- Mercedes Benz

8th May 2008, 21:20	#5 (permalink)
highwayblaze BHPian Join Date: Feb 2004 Location: Chicago/Mumbai/Pune Posts: 748 View My Garage	All of the above and rising fuel prices have had a bad effect on their larger vehicles. Problems with the new Tundra camshafts and several thousand pick up trucks recalled in the last year have hurt their image a bit. A recent news article I read said that Toyota's used car sales are high whereas new car sales are plummeting. __________________ Chill Pill Blaze Last edited by highwayblaze : 8th May 2008 at 21:23.

11th May 2008, 15:20	#8 (permalink)
sujaylahiri BHPian Join Date: Apr 2006 Location: Windsor ON Canada Posts: 504	Welcome to the club Toyota. I guess Toyota should "officially" join the big 3 and make it the big 4 (in terms of declining profits). __________________ I am an alien.

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12th May 2008, 12:51	#10 (permalink)
Spitfire BHPian Join Date: Jul 2006 Location: Bangalore Posts: 222	Q4 - 2008?? We are still in Q2 - 2008, right?. Is this some future prediction? Q4 - 2008 sales will be known only in Q1 2009 right?