Toyota says it's no longer profitable in North America

[Rich Parsons]

From this Link: http://www.detnews.com/article/2009...ys+it+s+no+longer+profitable+in+North+America

Toyota says it's no longer profitable in North America

Toyota's top executive in the United States said Monday the company was reviewing its entire operation here, including whether to close a factory in California and when to open a factory in Mississippi.

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Toyota's sales have fallen 38 percent in the first six months of the year

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The company also is contemplating what to do with its Mississippi plant. Toyota has completed the structure, but not moved equipment into it or given a date it might open because of the sharp decline in auto sales. It was scheduled to open next year. Toyota has said it may build the Prius in Mississippi, but Inaba said those plans are unclear.

... .

Is not the Missisippi plant one of the examples that the congressional members from the south used as an example of what a Profitable company is supposed to do?




Thoughts and opinions on this article and subject?

 

[terryl965]

Rich this is another example of the economy going as far south as it can go. I believe the worst is still to come and no-one has an answer for this. I know I am prepared for the worst one meal a day and ready to ride my bike just in case. I feel for the younger American you beliefs are still in that stage where it is always darkes before dawn and yet they seem not to care. I also believe that the Mississippi plant will never make it to the production line because no-one really believe buying a new car will save the economy.

What the hell ring up big bills and let the economy crash but have a little fun before it happens.

 

[JDenver]

All aboard the bailout train. It never leaves the station!

 

[Omar B]

Wow that stinks. I and my family are all Toyota devotees. In fact both my parents, my sister and I all drive Lexuses. If my buying another car would help I would, I love Toyota.

 

[arnisador]

I love my Toyota! I'll keep buying them (used).

 

[celtic_crippler]

Heavy sigh....


:flushed:

 

[Omar B]

I love my Toyota! I'll keep buying them (used).

I hear that man. Funny story, my dad was almost in a Toyota commercial a couple years ago. My family had been through 11 Toyotas at the time and my dad went into the dealership to buy his Lexus the dealer was surprised at his track record with the company.

But yeah, I once years ago had a Nissan Sentra (high school car) which was cool but was not to my liking and my mother once had a Dodge Durango which she grew to hate and she traded for a 4runner and I got a Corolla (which was my college car).

 

[Rich Parsons]

Rich this is another example of the economy going as far south as it can go. I believe the worst is still to come and no-one has an answer for this. I know I am prepared for the worst one meal a day and ready to ride my bike just in case. I feel for the younger American you beliefs are still in that stage where it is always darkes before dawn and yet they seem not to care. I also believe that the Mississippi plant will never make it to the production line because no-one really believe buying a new car will save the economy.

What the hell ring up big bills and let the economy crash but have a little fun before it happens.

Terry,

You are correct from my point of view as well.

I also stated this very early on last year when the fall was just being talked about, that when half you income goes away (* market fell from 17 million units to 9 million units so just under half for a fall in the US *), and you cannot get loans as the financial industry is hurting and your costs are fixed and cannot be decreased unless you cut people and plants.

 

[Rich Parsons]

All aboard the bailout train. It never leaves the station!

Toyota has applied for special loans from the Japanese Government last year and also again this year. Yes they are also on the bail out train.

But here is the big difference, they have an unfair advantage in their home field.

1) No foriegn competition allowed to build vehicles within Japan
2) All imports are taxed at 100% to vehicle is now twice the cost
3) All vehicles (* except on US Military Bases *) cannot be over five years old.

So, if the US did not allow other companies from other countries to build here than the locals would have been stronger. But that is not real free trade or capatilism. But then no one else really plays by those rules anyways.

The US did have some taxes but they were in the single digit taxes for imports, but this is one of the reasons the foreign companies decided to build here as well as they now had a local foot print and would not have to pay the import taxes.

What would everyone do, if they had to buy a new car every 5 years? All the used car market would be gone and people could not have classic cars. But it would be great for the local economy around plants in the US as they would always be busy. But people would have to pay for it.


The only automotive company in the world that has not recived any financial aid from thier local federal government is Ford.

 

[Phoenix44]

Rich, you are dead-on. Time to start protecting our own products. Japan does it, so does China and Korea.

 

[Rich Parsons]

Rich, you are dead-on. Time to start protecting our own products. Japan does it, so does China and Korea.

Well, I would prefer an equal footing versus a protection mindset.

This would allow for open markets such as in Europe to continue to import vehicles to the US and the same goes the other way. Now the only problme I have with Europe is that each country has a different law about lights and if you import a US vehicle they have to go through a retrofit for legal standards that are more cosmetic than actual functionality. The ones for adding more lights or other safety issues is not an issue I would worry about.

This would allow us to not allow companies that have protection at home to build within the country and to have import taxes upon them. This would then have the benefit of those companies lobbying their own governments for a change.

 

[Bruno@MT]

Rich, you are dead-on. Time to start protecting our own products. Japan does it, so does China and Korea.

You should only protect your own products if they are better. If they are not better, detroit should make them better. If they don't, then it's senseless to support US cars.

 

[Rich Parsons]

You should only protect your own products if they are better. If they are not better, detroit should make them better. If they don't, then it's senseless to support US cars.

From one stand point you are 110% correct.

But in an open market ther should not be one company that has 60% of the market. And if the company looses the market it is not really bad but good.

It is also 110% incorrect as many people make the arguement that the Japanese companies are stronger so they must make better product. That is not a valid statement either. The issue is that people need to understand the complete picture.

Most people are not going support the tariffs. Having laws change that quick would not be a good thing either for implementation.

But how do you measure better?

JD Power? If so then GM has number ones in markets just like Toyota. They have beaten Toyota in the last few years in certain segments as well.

Toyota has more recalls the last two years than cars they have made.

Is it fuel economy?

Or is it some subjective perception of what you like?

If so then there should be a few strong companies with about 20% market share and the rest in the high sinlge digits to teens. oh wait that is what we have. So we have Japanese and North American world wide and even European companies selling the most in segments for vehicle size and also markets. To me that is a strong free market environment that will be hurt when 40 to 60 % of the market goes away world wide.