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Report: Toyota May Post US$1.67B Operating Loss in FY 2008; First Since 1940

The Nikkei reports that Toyota Motor Corp. is expected to lower its fiscal 2008 forecast to an operating loss of about ¥150 billion (US$1.67 billion), which would be its first such loss ever, and the first loss since 1940.

The global sales slump and the yen’s sharp appreciation have taken a severe toll on the automaker, which had booked a record 2.2 trillion yen [US$24.5 billion] in profits for the year ended March 2008.

Toyota had downgraded its earnings estimates just a month and a half ago, when it released results for the six months through September. In that revised forecast, it projected sales to decline 13% year on year to 23 trillion yen and operating profit to fall 74% to 600 billion yen, downgrades of 2 trillion yen and 1 trillion yen, respectively, from the prior forecasts.



Should qualify for USA and Canada handouts!

Let's see how fair we are.


Should qualify for Canada and USA handouts.

Let's see how fair we are.


This calls for a change in management, at least if they want a bailout.
But if they continue to make dinosaurs they deserve to fail.
Hybrid sales have declined steadily and are now down to 2.2%.
SUVs maintain about 15%; Pickups, 17%
No bailout unless they concentrate on upgrading the Sequoia and Tundra.

Just kidding - but I think the idea that some politician or even presidential delegate or car czar can grab the helm and make an auto company green and profitable is ludicrous and arrogant, at best.


Fair? What’s Fair got to do with it?
This is not little league.
You want fair? Throw the bank executives in jail, not keep then in charge with NO restrictions on their compensation or golden parachutes. Same treatment for Greenspan and Paulson.



Manufacturers building the most efficient and most reliable cars should get the most bailouts.

Those on the other end of the spectrum should be allowed to fold.

By letting the Big-2 fold, the others may survive.

That's what a free market economy is all about.


I forgot:

The Big-2 laid off plant workers could have job priority fixing existing roads and bridges and/or building new ones.

Car parts laid off workers could be given job priority building new electrical grid, wind farms, geothermal power units etc.

Of course, some retraining may be required, but that's not impossible to do.


A free market economy lets the buyer decide which car makers survive.
Socialism decides which politically correct car makers should get the most bailouts.
Letting the Big-2 fold is highly unlikely to allow the other[s] to survive.

But I agree a totally free market economy is all about letting the weak die.
Laws that presume the workers can set their own salary do not constitute a free market.
The Big-2 laid off plant workers will probably get a bailout with full wages and retirement, “Multi-billions for the bankers, a few billion for the UAW – That’s fair.
Car parts workers workers are part of small business, they do not vote Democratic, they will get zip, just watch.


A true free market rarely, if ever, exists, I shudder to think what that would be like. I suppose it is about the polar opposite of Cuba's society.


As if the news for Toyota wasn't bad enough. NOW we have reports from Virtual Worlds News that VR sims like GCC are suffering their worst losses in history. Sales and subscriptions to virtual programming has crashed through the floor leaving hundreds of thousands of programmers and players without pay checks.

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