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Toyota's US profits drop 99%

rybo submitted on 08/11/2008 Official AutoSpies Timestamp: 10:22 AM
from: www.motorauthority.com

[56] user comments | category: Misc News

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Toyota's US profits drop 99%

Last week saw Toyota announce its first profit drop in nine years, with the carmaker revealing a 39% decline in its global operating profit the quarter ending in June this year.

The industry juggernaut has now revealed an even worse result in percentage terms for its North American unit, with profits for the past quarter plunging from $1.4 billion to just $15.2 million in a one year period - a nosedive of 98.9%. Read Article

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enthusiastx11 - 8/11/2008 12:14:44 PM

+6 Boost

holy crap!

so one of the world's most profitable carmakers collapsed to merely breaking even.

looks like toyota really is one of the big 3 now.

reply to this comment

silver1 - 8/11/2008 4:14:38 PM

-2 Boost

Very dumb comment....

Toyota is the most Profitable Automaker in the world....Everybody would have to be part of the big 3 before Toyota will, Toyota will be last.....

enthusiastx11 - 8/11/2008 8:15:00 PM

+2 Boost

toyota earned $15 million in profit in the quarter. small companies earn more than that. it's an embarrassment for one of the world's largest corporations.

204E60 - 8/11/2008 12:22:56 PM

-5 Boost

I think the headline has an error in it. It's 39%, not 99%.

reply to this comment

michal1980 - 8/11/2008 12:24:29 PM

+11 Boost

no the 39% is WORLD WIDE.

99% in USA.

EL34 - 8/11/2008 12:24:47 PM

+5 Boost

The bigger they are the harder they fall :-D

reply to this comment

BigShow50 - 8/11/2008 12:33:10 PM

-8 Boost

WOW!!!...Talking about "shitting the bed!"...Well for the year of 2008, it's no surprise the auto industry as a whole has been in the shits...thanks to George Bush Balls and the rest of our good ol' Americana people, with all the political bull crap that lead to the downturn of the domestic auto corps causing a domino effect. Toyota is in the position, that even though they have shown some garbage quarterly reports for this year. They are the only company that can pick themselves up and get back to where they should be very quick. For the rest of the automotive rivals, as the saying goes "I've fallen and can't get up!"....LMAO!!!

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BigShow50 - 8/11/2008 12:35:37 PM

-1 Boost

Hey EL34, you comment will mean more to Mercedes and BMW in the next few years. Mark my word, their shit will hit the fan real soon, as they con't to loose money in areas they do not want to say, just to try to save face!!!...They are burning themselves real quick!!!....just wait and see....

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enthusiastx11 - 8/11/2008 12:48:57 PM

+1 Boost

you're confusing the germans and the japanese. it's the japanese who's culture requires them to save face at all costs.

furthermore, the german brands are truly luxury brands that are geared to the affluent. as such, they're more stable.

toyota/lexus buyers are not nearly as solid financially, so these brands are more prone to boom and bust.

JRobUSC - 8/11/2008 12:37:39 PM

+5 Boost

Staar, huu76, and Teknik, the chef has prepared you a delicious meal of poached crow. Please enjoy.

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enthusiastx11 - 8/11/2008 12:45:57 PM

+1 Boost

what's scarier is that these are the result for all of toyota. for lexus--who's sales are down far more than toyota--this would imply LOSING money. uh oh. no wonder toyota never has shared financials for the brand.

FactsRule - 8/11/2008 2:31:29 PM

+5 Boost

Thumbs up JRobUSC!! That idiot has at least 100 profiles on here. He must have multiple pesonality disorder. Shold have got the "Staar"ing role in "All about Eve"!! LMAO

ICON - 8/11/2008 10:40:20 PM

+3 Boost

Touche +1(to both of you)!

AmazonPrinceIS350 - 8/11/2008 1:11:14 PM

-1 Boost

BigShow50: "I've fallen and I can't get up"

Love that! The first thing that came to mind when I read your comment were those comercials from GM in the late 80's "something..... something.... from the good old good old guys" and they would flash pictures of old white men who look like they were on the tv game show Hollywood Squares. LOL!

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theoptimisticpessimist - 8/11/2008 1:18:20 PM

+2 Boost

Hey, at least they made a profit.

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w209w114 - 8/11/2008 1:20:09 PMView My AgentSpace

+1 Boost

Looks like they might be "in the red" and declaring losses in the U.S. market next quarter.

All of this in a year that toyota promised record sales and profits.

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Agent009 - 8/11/2008 3:06:51 PMView My AgentSpace

+6 Boost

In all fairness it shows just fast the market turned on everybody.

steve27t - 8/11/2008 1:32:40 PM

+2 Boost

The German premium marques have a solid worldwide market, as does Toyota, BUT Lexus is very reliant on the US market, Europe has never "GOT" Lexus. After many years Lexus only makes a small dent in the Euro market, interestingly Russia is the No1 "European" market for Lexus.

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enthusiastx11 - 8/11/2008 2:14:01 PM

+6 Boost

it is funny the russia is most interested in lexus. it's one of the tackiest countries in the world--all they seem to care about is labels NOT the actual product.

enthusiastx11 - 8/11/2008 2:15:17 PM

+7 Boost

i'm starting a fund to buy michaeltaylor a one-way ticket to siberia.

i'll throw in the first $100. who's with me?

Star - 8/11/2008 10:41:18 PM

+3 Boost

Here is $100 for MichaelTaylor's one way ticket and another hundred for the other mentally challenged fellow named Staar. Huu76 should be also transported far from here preferably in the trunk of a BMW(his favorite brand). LOL...

Agent63 - 8/12/2008 10:05:07 AMView My AgentSpace

+2 Boost

MT,

Actually, the Russians like Mercedes Benz quite a bit. I have friends who use to live there and they told me Lexus isn't viewed as a prestigious brand. That's such a drag isn't it?

Are you a car enthusiast? or a fanboy?

Gennissen - 8/13/2008 6:26:42 AM

+1 Boost

rather, send MT to Georgia.

LexSucks - 8/11/2008 1:40:27 PM

+6 Boost

That's what happens when you build lame cars.

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SteedPub - 8/11/2008 1:57:48 PM

+1 Boost

Wow I am in total shock. I though Toyota was the second coming of Christ all these years.

I guess even the Omniscient can be a subject to swings of capitalism.

reply to this comment

cptamazing4 - 8/11/2008 2:12:46 PM

+1 Boost

HA HA HA HA , Toyota are the masters of deceipt. But as the old saying goes: You can fool some of the people some of the time...but you can't fool all the people all the time!!!!!! shame on you toyota.

reply to this comment

huu76 - 8/11/2008 3:03:57 PM

-5 Boost

jrrob,
Toyota still made an overall net profit of 3.2 billion from Apr-June. Add the 1.4 billion that disappeared in the US and that's 4.6 billion, so the US accounted for approx 30 of the 39% overall drop. This basically means Toyota is still cleaning up everywhere else in profit terms (and maintaining ales), and as the article points out, their cars are still selling for high residuals so they're not worried.
http://www.irishtimes.com/newspaper/breaking/2008/0807/breaking56.htm

If you read really close, it says its due to sales tanking in the US. BMW and MB had same or increased sales yet had their operating profits drop by 33% and 2 billion respectively.

Anyone with business sense would much rather me in Toyotas shoes.

Sorry to rain on your celebrations, perhaps you'll learn to analyze before you put your foot in your mouth next time.

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JRobUSC - 8/11/2008 3:34:28 PM

+4 Boost

Spin it any way you want, shleprock, 99% U.S. drop and 39% global drop are horrific. Plus, I don't even care about Toyota, I'm interested in Lexus. It's interesting to see you using the "global sales" explanation for Toyota, because I said that, OVER AND OVER, for BMW and MB last week. You ignored it. Now you're using it for Toyota. And you are correct, just as I was last week. We were talking then about Lexus though, and Lexus, unlike Toyota, MB, or BMW, DOESN'T SELL JACK $HIT GLOBALLY. Their figures live and die with the U.S. market (and get off the Canadian tip, sales there are a blip on the radar). So as much crap as you were talking the other day about BMW's 33% drop, your beloved Lexus is absolutely hemhorraging money right now. They're getting destroyed. If they didn't have Toyota bankrolling them and hiding their financials, Lexus would be LOSING MONEY, just like GM and Ford.

At least BMW and Mercedes turned a profit. Did the profits fall? Of course. Did they lose hundreds of millions of dollars? No, that was Lexus.

So, in the words of the great prophet, "SUCK IT". And stop bothering everyone on here with your BS. You're wrong. You were wrong last week, you're wrong today, and you'll be wrong tomorrow. And everyone knows it. So stop wasting our time.

VISO - 8/11/2008 5:45:29 PM

+3 Boost

Actually, if you look at some recent articles from ANE, Toyota is suffering in Europe as well with its sales down quit a bit. So, it is not just the US.

enthusiastx11 - 8/11/2008 8:17:03 PM

+3 Boost

again, spin it however you want. toyota profits dropped to almost nothing in the US market. interesting, that's the market where lexus sells the vast majority of its cars. coincidence? no.

huu76 - 8/11/2008 3:08:40 PM

-3 Boost

Factsrule,
I don't need multiple profiles like some German losers on this site. huu76 is enough to put you all in your place.

reply to this comment

ICON - 8/11/2008 10:53:20 PM

+3 Boost

Talking in third person?
Huu now I am really frightened for you.

huu76 - 8/11/2008 3:12:21 PM

-3 Boost

Do you guys want to know what's even scarier? Since Toyota's sales and profit have dropped at the same rate globally yet the US market accounted for the vast majority majority of the drop, that means Toyota is actually making more money in their other markets.

That's the beauty of charging high interests and not diluting your brand with every incentive conceivable like the Germans have.

reply to this comment

JRobUSC - 8/11/2008 3:41:43 PM

+1 Boost

"That's the beauty of charging high interests and not diluting your brand with every incentive conceivable like the Germans have."

My God, you are such an unbelievable whiner. Lexus is losing millions. Period. When you didn't believe it last week you talked crap about BMW. Now with the figures staring you in the face you've switched to talking about how great a job Toyota is doing stemming the tide. Or you talk more crap about the Germans. Well, smart guy, the Germans aren't losing money. No sir, that's Lexus. The Germans might be making less money, but they're in the black at least. Lexus? Based on the 99% decline Toyota is reporting in the U.S., Lexus is MINIMUM hundreds of millions of dollars in the red. That's the "beauty" of relying on one single market for all your sales.

Gennissen - 8/13/2008 6:47:59 AM

+1 Boost

my friend, the stats here suggest that the luxury division of Toyota is real weak given the current conditions. Buyers worldwide are more willing to hang onto their bmw, audi or benz and ride out the storm than the current lexus owners. Overall Toyota (predominatinatly a supplier of non-luxury class vehicles in the rest of the world and shed about 13% in net profit for that region) shed a total of 39%. meanwhile, the Germans across the board (mostly derived of luxury cars) shed an overall 33% or so (for example).

huu76 - 8/11/2008 3:17:26 PM

-3 Boost

Here's that BMW link.
33% drop in NET profit worldwide, but a 60% drop in operating profit.
Compared to Toyota, BMW is actually doing worse globally (even with Toyota's 100% drop in the US).
http://www.iht.com/articles/ap/2008/08/01/business/EU-Germany-Earns-BMW.php

That's pretty sad.

I'm sure this article's title made for some good hype though.

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enthusiastx11 - 8/11/2008 8:18:34 PM

+3 Boost

apples to oranges huu. totally irrelevant comparison.

please do share LEXUS financials vs. BMW financials.

thanks!

huu76 - 8/11/2008 3:20:52 PM

-3 Boost

It only took me 15 mninutes to disect and cut through the headline hype. Too easy.

reply to this comment

sector - 8/11/2008 3:25:17 PM

-2 Boost

Before all the German fanboys celebrate, you should consider the American jobs that may be lost when Toyota decide to "downsize" its operations. Toyota is a company that actually provides Americans with jobs... remember that.

reply to this comment

JRobUSC - 8/11/2008 3:46:26 PM

+3 Boost

MB and BMW have American factories too.

Besides, we're not celebrating Toyota having troubles. We're celebrating morons like huu76 and Staar being shown that they are absolutely, unequivocably, undeniably wrong. If it weren't for people like them on this site, you'd see a lot more people who actually supported Toyota. With them on here acting as ToyoLex mouthpieces, however, it's just about impossible to not start hating the brand. It'd be like asking someone to like BMW based solely on reading AmazinBimmer's posts -- it can't be done, and ruins it for the rest of us. Same thing with Lexus thanks to the jackassery of Staar, huu76, etc.

Agent63 - 8/12/2008 7:17:22 AMView My AgentSpace

+3 Boost

You're a douche bag Michael and that's a FACT!. I'm assuming that 1% are people like you. Fanboys of nothing. What does Toyota have to offer besides Hybrids? there's nothing exciting about them.

JRobUSC - 8/11/2008 4:54:21 PM

+10 Boost

HA HA HA! MichaelTaylor is on your side! That should tell you all you need to know about how wrong you are. Thank you, MichaelTaylor, for finally saying something useful, even if you didn't mean to.

Excuse me while I go do a victory dance.

reply to this comment

enthusiastx11 - 8/11/2008 8:19:30 PM

+3 Boost

like attracts like.

michaeltaylor and huu76 forever!

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huu76 - 8/11/2008 11:16:01 PM

-2 Boost

Don't hate because all it took was some analysis and a few facts to shut you all up and take the wind out of your sails.

I don't create the facts, I just report them for all to enjoy.

Lexus and Toyota charge the same financing rates, lower sales mean lower revenues, but on a per unit basis, both are just as healthy as ever. Can't say teh same for the 20% off BMWs.

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Agent63 - 8/12/2008 7:18:36 AMView My AgentSpace

+3 Boost

Mike,

Yes that's right. You told everyone a couple months ago you are homosexual. Not hating on you for that but there's something strange about you.

JRobUSC - 8/12/2008 8:15:13 AM

+4 Boost

BMW, MB, Audi = positive profit
Lexus = losing money

That's the only fact that matters. The only "wind you took out of anyone's sails" was your own. But then you're full of enough hot air that you probably won't notice and will just keep making a fool out of yourself for everyone to see. Keep it up! We'll all keep having a laugh at your expense.

enthusiastx11 - 8/12/2008 6:11:00 PM

+1 Boost

MT:

glad you're not gay. you'd be an embarrassment to anyone who is.

Agent63 - 8/12/2008 10:01:08 AMView My AgentSpace

+4 Boost

Toyota isn't kicking ass with profits dropping 99%. You do know your math right?.

reply to this comment

Gennissen - 8/13/2008 6:59:46 AM

+1 Boost

Guys, easy with the MT and Huu bashing. Given the insummountable evidence, we just might drive them to committing hara kiri. How about we do something more constructive? How about we ask MT and Huu some questions:

-Why is Toyota bleeding in the USA?
-Why is Toyota bleeding more than its German peers worldwide?

reply to this comment

ktu01 - 8/15/2008 12:54:12 AM

+1 Boost

That's cause a significant portion of Toyota / Lexus US sales relies on larger vehicles like their variety of SUVs and Tacoma and Tundra trucks. Even with Lexus, the RX350 is one of their best selling vehicles. That's probably why they are being hit rather hard and are looking to retool to focus on smaller cars, like what the other US manufacturers are doing as well.

reply to this comment

huu76 - 8/15/2008 2:59:52 PM

+1 Boost

Toyota profit = 3.2 billion in 3 months. The US caused the drop, the rest of their markets are fine.

BMW can't even make that much money in 2 years.

Bottom line, BMW sales steady, profits down. Toyota sales down, profits down proportionately. Profit per car, Toyota is mopping the floor with BMW. Any has-been car company can give cars away, it takes a leader to be able to charge what they want during a recession.

How long can BMW continue with 0.9% financing before everybody sees that they've lowered themselves to compete against Hyundai?

As I said, anyone with business sense would rather be Toyota than BMW.

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