Hold On: Toyota Expecting Profits To Plunge

This is actually kind of surprising. I know the economy is bad but I figured all those "knee-jerk must sell the gas guzzler for a Prius or Corolla" people would help them out.

— Targa (View Profile)

Posted on 8/6/2008 3:23:04 PM | reply to this comment | Votes: 1   

A bit more detail:

Toyota Motor Corp. said the company will set aside major reserves for its first quarter to cover losses from vehicle leases in the U.S., making it the latest global auto maker to be hit by plummeting value of used cars as gas prices rise.

"We are going to have to make large provisions," a Toyota spokesman said. He declined to comment on how much those charges might be. Toyota on Thursday will report its fiscal first-quarter results for the period ended June 30.

— Agent009 (View Profile)

Posted on 8/6/2008 4:47:02 PM | reply to this comment | Votes: 1   

Toyota made 1.8 billion in profits in the first quarter, they needn't worry quite yet.

— sector (View Profile)

Posted on 8/6/2008 5:19:22 PM | reply to this comment | Votes: -1   

Wasnt this the same company that was expecting record sales and profits for 2008 just months ago??? Looks like the guys there only care about one thing, the board of shareholders and what they want to hear.

I predicted that this would happen last year, and sure enough here it is today.

— w209w114 (View Profile)

Posted on 8/6/2008 5:29:44 PM | reply to this comment | Votes: 1   

The bigger you are, the harder you fall unfortunately.

— adamsaf723 (View Profile)

Posted on 8/6/2008 6:44:52 PM | reply to this comment | Votes: 1   

Toyota and many other companies did not appropriately prepare for this economy. Gas prices have been high for a while and there is no reason why they shouldnt have pumped out enough prius's by now to make it among the best selling vehicles. Every toyota dealer is sold out here. All 6 of them! That was much of their profit loss right there. Additionally they run low on small fuel efficient cars. Why shouldthat be the case if they have had so many years to prepare as gas prices started rising years ago. fire their risk analyst immediately

— 0to60 (View Profile)

Posted on 8/6/2008 7:37:42 PM | reply to this comment | Votes: 0   

Sales drop, profit drops by the same margin. Pretty basic business principle.
Look at profit per car and I'm sure Toyota is feeling pretty comfortable.

Atleast Toyota has satisfaction in knowing that they aren't stuck like other companies who's sales numbers have remained the same, but profit has plunged.

Bottom line is, Toyota isn't desperate like other companies, hence no real incentives required.

This article is just over emphasizing because its from Detroit.

— huu76 (View Profile)

Posted on 8/6/2008 8:31:33 PM | reply to this comment | Votes: -1   

Sounds like they made $3 Billion instead of $4 Billion for the quarter (They made $15 Billion last year).
Times are tough. I don't know if they'll make it
DrFill

— DrFill2009 (View Profile)

Posted on 8/7/2008 8:22:57 PM | reply to this comment | Votes: 1