You're now on the archive server. Commenting has been disabled.
Amid Recall Turmoil- Toyota Posts a Profit & Raises Annual Forecasts
Toyota posted a profit October thru December 2009 and raised its 2010 annual earnings forecasts, despite auto analysts warning of grim days to come as safety concerns spread across its product lines.
The world's largest automaker posted a net profit of some $1.7 billion, and if this isn't adding insult to potential injury- citing stronger sales of the Prius- a car just recently embroiled in a safety recall concerning its ability to stop.
In the fourth quarter in 2008, Toyota reported a 165.7 billion yen loss, or using today's exchange rate about $1.83 billion.
Obvisouly, the impending damage from the safety recalls concerning the brand do not reflect in these earnings figures. Damage from the current state of affairs may plague the maker into the next fiscal year.
Toyota gave estimates of the global recall totalling upto $2 billion, some $1.1 billion for repairs and around $800 million in lost sales.
The recalls could gouge Toyota demand by around 100,000 vehicles according to the Associated Press.
Cost-cutting and a revival in global auto sales after the sharp economic slump of 2008 are to credit for the healthy 2009 figures. Toyota now figures a 80 billion yen profit for 2010 through the first quarter, up significantly from 2009's prior forecasts of a 200 billion yen loss in the first quarter of '10.
Toyota refused to comment on profitability beyond the first quarter of 2010.
The recently discovered problems with the Prius line was not factored into the current forecasts.
We shall see. In the meantime, would you buy a Toyota now? Does the current sad state of affairs concerning its safety record change your viewpoint of the once invincible consumer brand with a reputation of quality and reliability?
Forecasts, hard figures and the like are sure to change, even the auto press and consumers' sentiments of which, were always a bit "rosey" when it came to the once "infallible" Toyota.
(Well, at least that's going to stop... we would think.)
»
- 1098 reads
- Printer-friendly version
- Send to friend
We all know, "Hurry up and buy, me love you long time." What we didn't know was, "Hurry up and make."
ok. here come the Toyota foreclosures !!!
barely done with the Big 3 Detroit foreclosures !!
My wife and I are going to go shopping for a Toyota now that, hopefully, the prices are "beaten down". Barring this issue which is being fixed, you still can't beat Toyota reliability.
You cant keep a good company down. The transportation Secretary and the US Government tried everything to make a recall seem like a Major catastrophe. So, Toyota fucked up. They are fixing the problem. I would still buy a Toyota over an American car. I own a Corolla and i would buy another one when this dies ( Years and years from now). The Us Government should stay out of the car businesss. They are already in deep shit.
Watching the obama adminstration wage war on toyota to make gm profitable again is pretty scary. Just wait until there is a "government option" in place in healthcare. Blue cross will be compared with satan on a daily basis.
I have owned six Toyotas and they have all been good vehicles but after I called to find out what the procedure was to get my wife's 2010 car fixed and got the run around, deflection, excuses and basic corporate PR bullshit, I don't think I will be buying another one. They still have not communicated with owners on how or when they can get their cars fixed. Shame on them. No one is responsible for anything.
Toyota is doing damage control, primarily because the audio on this car crash is so horrifying, so vivid, they figure they will lose that case no matter what.
Listen: http://www.cardealerreviews.org/?p=247148
All of this feels like a maneuver to prop up the stock price.
Prius brakes, Camry pedal modules: these guys have been cost cutting for a long time, it may have gone to far recently. Just Google trend: Toyota recall. The trend volume is almost parabolic.