Topic: Toyota / Lexus Tidbits

[sirAQUAMAN64]

Toyota offers 0% financing on 11 models

Move could heat up incentive battles

Hans Greimel
Automotive News
October 3, 2008 - 12:01 am ET
UPDATED: 10/3/08 3:20 p.m. EDT

TOKYO -- Toyota Motor Corp., reeling from its steepest drop in U.S. sales in at least four decades, is offering no-interest loans on 11 models. The "unprecedented" move is designed to relieve consumers' worries about tight credit, Toyota said in a statement late yesterday. It follows General Motors' decision to provide interest-free deals after industry sales last month fell below 1 million for the first time since 1993.

"Dealer traffic is decreasing," Toyota spokesman Hideki Homma said today. "We needed to promptly do something."

The move may help Toyota stem its 10.4 percent slide in U.S. sales this year and preserve its August forecast of a 7 percent drop for the entire year -- its first decline since 1995. Japan's biggest automaker posted a 32 percent drop in U.S. sales last month.

Analysts said Toyota is in a better position to pay for the incentives than its money-losing Detroit rivals.

"This is a great marketing ploy when people think there's no credit out there," said Christopher Richter, an auto analyst with CLSA Asia-Pacific Markets. "I don't think the costs to Toyota will be that great."

Toyota's offer runs through Nov. 3 and will cover loans of 36 to 60 months, depending on the model. The qualifying nameplates are the Matrix, Corolla, Camry, RAV4, Highlander, FJ Cruiser, 4Runner, Sequoia, Sienna, Tacoma and Tundra.

"We gotta try something,'' said China Arbuckle, general sales manager of Bill Page Toyota in Falls Church, Va. She said consumers are wary because lenders are offering loans only to the most creditworthy customers. "We can't just sit here and do nothing," Arbuckle said.

September's 27 percent tumble in U.S. sales pushed the industrywide decline to 12.8 percent for the first nine months of the year.

GM's Aug. 20 employee-pricing offer to all customers helped limit its September sales decline to 16 percent. The incentives boosted GM's September U.S. market share by almost 4 points compared with last year, to 29.3 percent. GM switched to 0 percent financing on Wednesday.

Toyota's inclusion of small cars such as the Corolla and Matrix in its 0 percent plan is a sign of industry stress, said Junichi Yamaki, senior vice president for auto analysis at Moody's Japan.

Combined U.S. sales of the two small cars fell 28 percent in September despite high gasoline prices that continue to drive consumers away from trucks.

Said Bob Carter, Toyota Division general manager: "Not only do we have the inventory of today's sought-after fuel-efficient models, but we have the capacity through Toyota Financial Services to finance or lease them."

[Ex-airbalancer]

Lentz also confirmed that the development of a diesel-engine variant of the Tundra has been tabled. While the diesel has not been canceled outright, Toyota is studying whether it makes sense to enter such a small segment. That's a big step back from Toyota telling dealers at the National Automobile Dealers Association convention last year that a diesel would arrive by 2010 or 2011.

AS, is this any different then your info

[Mitlov]

Toyota offers 0% financing on 11 models

I thought ArticSteve was really tearing into GM for offering 0% financing?  What's good for the goose is good for the gander, I guess.

[ArticSteve]

AS, is this any different then your info

Don't know anything about it.      Hope it's an inline 6 if it comes. PPL love the Cummings.

[ArticSteve]

I thought ArticSteve was really tearing into GM for offering 0% financing?  What's good for the goose is good for the gander, I guess.

Well GM loses what in the first half of 08, something like 32 Billion, and they have essentially run 0% 24/7 and continue to lose market share?  Of course I tear into them.  It's like the Bush Administration mailing all those rebates to everyone 6 months back to simulate the economy and look at it now.  BROKE

I only wish Toyota would go 0% up here even if it's only for a month. 

[safristi]

  why NOT call them REPROBATES and the same dummies can get into KARS now. while they "walk-away" from their houses..that they can't AFFORD..................sheesh.......funny how LIFE is S of the Border down USA err MEXICO way......any reversal of the immigrants.......loyal USA citizens heading fer the "BORDER" Special........

[UmroAyyar]

Toyota struggling to meet global sales, profit targets
Posted Oct 9th 2008 7:30AM by Chris Shunk

The auto market is in the tank right now, with sales dropping to 1991 levels and Detroit automakers in a cash crunch of horrendous proportions. Even Japanese automakers are struggling, and perhaps the biggest sign that something is terribly wrong is that Toyota is even feeling the pain. The Japanese automaker's sales dropped by an incredible 32% last month compared to September 2007, which was preceded by drops of 9.7%, 18% and 11% in prior months. Toyota has already lowered its global sales target for the year to 9.5 million units to reflect the trouble it's experiencing in the U.S. market, but recent news from Europe is that production is being cut there, as well.

The worst news for Toyota would likely be welcome news to the rest of the automotive universe: the Japanese juggernaut will only rake in about $12 billion of profit this year. While that's an absolute treasure trove of cold, hard cash, it's about 40% less than Toyota had earlier forecasted. Toyota's stock has also taken a hit during these challenging times, with its current value down about $23 per share under its 52-week high of $58.76. The worst part about the automotive market is that there appears to be no end in sight, which means there is more bad news to come; even from Toyota.

[Source: Automotive News, sub. req'd]

[safristi]

..I warned THEM fer naming a CAR the MATRIX.....MATRIX......................MATRIX...


 boogaah boogah

[johngenx]

Toyota's problem?  They're in the car/truck/SUV business!  Everyone is getting pummeled right now thanks not only to rising gas prices, but the credit crunch and dramatic drop in consumer confidence.  Toyota also has many large models like the Sequoia, Tundra, etc.  The large profits from the large models will be sorely missed.  Thankfully, Toyota is in no danger of going -in-the-air thanks to their smaller line up, but during tough times, even the Corolla sees sales drop.

[safristi]

.looks like Corolla...is dippin somefing in someone ta me................dancin' FOOL.....oooh Toyota is IMMUNE.......cos like GM before they are invincible...this time it's different..ya yada yada......

[Ex-airbalancer]

23 acres of unsold Toyotas
http://news.yahoo.com/s/nm/20081207/us_nm/us_autos_ports

[UmroAyyar]

23 acres of unsold Toyotas
http://news.yahoo.com/s/nm/20081207/us_nm/us_autos_ports

Very interesting. Atleast the detailers are getting paid better.

Toyota spokesman Mike Goss said inventory had been pushed to "unacceptably high" levels that would take 80 to 90 days of sales to clear.

That is still less than the 115-day supply of inventory on average for General Motors Corp, Ford Motor Co and Chrysler LLC, but it is double Toyota's inventory levels of just a year earlier.

The surge in inventories has been a small blessing to some in the industry. Automobile processors, who wash, repair and accessorize imported cars before they head to dealerships, said revenue from storing cars is helping offset the market's overall sluggishness.

MidTexas International Center Inc, whose Midlothian, Texas, facility processes vehicles for Kia Motors Corp, Mazda Motor Corp and Toyota's Lexus, expects to break even this year despite the dismal auto market because automakers are paying for cars to sit on its lots for longer.

"The inflow of vehicles is a lot greater than the outflow," MidTexas President Randy Denton said. "That helps to offset the loss of income from the vehicles that we're not processing."

[Trainman]

23 acres of unsold Toyotas
http://news.yahoo.com/s/nm/20081207/us_nm/us_autos_ports

Very interesting. Atleast the detailers are getting paid better.

Toyota spokesman Mike Goss said inventory had been pushed to "unacceptably high" levels that would take 80 to 90 days of sales to clear.

That is still less than the 115-day supply of inventory on average for General Motors Corp, Ford Motor Co and Chrysler LLC, but it is double Toyota's inventory levels of just a year earlier.

...

That would explain this:


Toyota taking more downtime in Canada, U.S.
Last Updated: Wednesday, December 10, 2008 | 8:04 AM ET
CBC News

Toyota Motor Corp. will stop production in Canada for 10 extra days in December and January as the Japanese automaker curtails its North American output in the face of slumping demand.

The company said it will also stop production at a plant in Indiana for six days and in Kentucky for nine days.

Toyota has plants in the Ontario cities of Cambridge and Woodstock.

The latest curtailment comes on top of cuts the auto company announced last month. Then, it said it would halt output at its plants in the U.S. and Canada for two extra days in addition to the regular Christmas holidays.

Toyota's U.S. sales tumbled 34 per cent in November, showing the effect of the weak U.S. economy. The company's sales of its high-end Lexus line were down 35 per cent.

In Canada, the company's combined Toyota and Lexus sales for November were up 1.9 per cent over the same month last year. Toyota sales were up 0.5 per cent while Lexus sales rose 19.1 per cent.

In addition to reducing production in North America, Toyota has also suspended output at plants in Japan and cut its earnings forecast.

[DockMan]

Looks pretty bad. Perhaps Toyota should seek some government money as well. What's good for the goose......

[Leviathan]

Looks pretty bad. Perhaps Toyota should seek some government money as well. What's good for the goose......

This article quotes a Toyota exec sniffing around for $40Billion Euros:

Toyota News                                             11/26/2008, 9:57 AM

A senior vice president of Toyota’s United Kingdom office strongly suggested that the European Commission consider an economic stimulus package that would include 40 billion euros in low-interest, short-term loans to aid the automakers in developing fuel-efficient vehicles for the future.

Graham Smith, speaking at the Society of Motor Manufacturers and Traders, said, “At a time of economic uncertainty when budgets are stretched to capacity, we must ensure the industry continues to invest in the development of new products and innovative technology.”

The European Investment Bank would provide the loans that will potentially be offered by the European Commission. The European Commission will meet today to consider the economic stimulus package.

[safristi]

  EUROPES" BROKER" THAN G.M..........................

[Ex-airbalancer]

Play the new game,  Where is AS and RR?   
http://www.canadiandriver.com/galleries/2008/index.php?level=album&id=381
http://www.canadiandriver.com/articles/pw/toyota-woodstock.php

[Leviathan]

Toyota struggling to meet global sales, profit targets
Posted Oct 9th 2008 7:30AM by Chris Shunk

The auto market is in the tank right now, with sales dropping to 1991 levels and Detroit automakers in a cash crunch of horrendous proportions. Even Japanese automakers are struggling, and perhaps the biggest sign that something is terribly wrong is that Toyota is even feeling the pain. The Japanese automaker's sales dropped by an incredible 32% last month compared to September 2007, which was preceded by drops of 9.7%, 18% and 11% in prior months. Toyota has already lowered its global sales target for the year to 9.5 million units to reflect the trouble it's experiencing in the U.S. market, but recent news from Europe is that production is being cut there, as well.

The worst news for Toyota would likely be welcome news to the rest of the automotive universe: the Japanese juggernaut will only rake in about $12 billion of profit this year. While that's an absolute treasure trove of cold, hard cash, it's about 40% less than Toyota had earlier forecasted. Toyota's stock has also taken a hit during these challenging times, with its current value down about $23 per share under its 52-week high of $58.76. The worst part about the automotive market is that there appears to be no end in sight, which means there is more bad news to come; even from Toyota.

[Source: Automotive News, sub. req'd]

Toyota expected to report first-ever full-year loss

Japan’s seemingly infallible Toyota Motor Corporation is expected to report it first-ever yearly operating loss, according to media reports released early Friday. For the fiscal year between March 2008 and March 2009, the automaker will likely post a small loss, caused by slumping sales in the latter half of the year.

The news comes from Japan’s Tokyo Shimbun newspaper, which says the automaker will hold a news conference on Monday to downgrade its financial outlook. In November, Toyota revised its profit forecast to to 550 billion yen in the current year, down from the 1.25 trillion yen projected previously. If these reports are accurate, Toyota will likely use the press conference to slash its outlook further, possibly into negative territory.

Perhaps most alarming fact is that Toyota reported a profit of 582.0 billion yen for the first half of 2008. That means the company would have to lose more than that amount in the second half of 2008 to result in a full-year loss. That could be particularly bad news for 2009’s outlook.

The news is further evidence that even the world’s strongest automakers are not immune to the potential damage of the global financial crisis. On Wednesday, Honda downgraded its projected operating profits for the second half of 2008 from 180 billion yen to 550 billion yen. The company also said it was forced to cancel its NSX program, and shelve the launch of Acura in Japan.

[MKII]

The Associated PressPublished: December 25, 2008
BEIJING: Toyota Motor has issued a recall for more than 120,000 cars in China to fix a problem that could result in loss of steering control, China's quality regulator said Thursday in the latest piece of bad news for the Japanese automaker.

Tianjin FAW Toyota Motor, a joint venture between Toyota and China's FAW Group, will recall 121,930 vehicles beginning Friday, according to a notice on the Web site of the General Administration of Quality Supervision, Inspection and Quarantine.

The notice said the recalled models include Crown and Reiz luxury sedans produced between 2005 and 2006, and Lexus cars produced between 2004 and 2006.

The agency said that manufacturing defects could cause the electric power steering systems to fail.

It was not clear if the same models would be recalled in other countries. Toyota officials in Japan could not immediately be reached for comment late on Thursday.

The recall announcement was the latest in a string of bad news for Japan's No. 1 automaker. On Monday, the company said it was sinking into its first operating loss in seven decades. Then Wednesday, Toyota reported that global vehicles sales had plunged 21.8 percent in November - its biggest drop in eight years.

http://www.iht.com/articles/2008/12/25/business/26toyotarecall.php

[Sir Osis of Liver]

http://www.autolinedetroit.tv/journal/?p=2431

Toyota’s Weakening Financials

January 22nd, 2009 at 11:17am

Toyota used to be in such a strong financial position that it earned the nickname the Bank of Toyota. That description no longer applies. Also, many industry observers are under the mistaken impression that Toyota has no corporate debt. That doesn’t apply anymore, either.As part of its ambitious global expansion efforts, Toyota’s borrowing and have debt load more than doubled over the last decade. In 2000 Toyota’s current liabilities* totaled ¥5.5 trillion, right now that stands at ¥12.4 trillion.

Although the company still has a solid balance sheet, it’s not as solid as it used to be. Moreover, the company is projecting it will lose money in the current fiscal year, something that has never happened before in its history.

This helps explain why Toyota is taking drastic action in the face of the current economic downturn, such as temporarily shutting down all of its manufacturing facilities in Japan. Now, even Toyota has to worry about how much cash it has on hand.

In its most recent financial report, Toyota states that it has ¥1.8 trillion in cash, which is roughly $18.5 billion, or about the same level of cash Ford reported in its most recent financial statement.

More tellingly, Toyota's total current liabilities (short term) now match its total current assets. In the past, Toyota’s current assets always exceeded its current liabilities. When a company’s liabilities exceed its assets, it has to dip into its cash reserves to make up the difference-unless its operations are generating positive cash flow. But right now Toyota is not generating positive cash flow.

This is the same situation that the Big Three found themselves in some years back, but failed to address. Toyota is obviously attacking the problem head-on. But it’s surprising to see how close the company has come to the edge of the cliff.

* current liabilities include: borrowing, long-term debt payments, accounts payable and accrued expenses.
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