For those that think the domestic automakers problems are all their own making has some excuse making to give as to why Toyota is quickly falling down the porch steps.
Toyota Motor Corp. is considering a major reorganization of its U.S. operations, bringing sales and manufacturing under one powerful executive, in an effort to keep closer tabs on its American business, which traditionally has been Toyota's biggest source of profit but is now losing money.
Let me reitterate that, Toyota is losing money in the US.
Toyota did not expect the industry to tank as fast as it did either and just a short couple years ago they opened a huge, brand new truck building manufacturing plant in Texas.
By contrast, Toyota's ill-timed assault on the U.S. full-size pickup segment, including the construction of a plant in Texas dedicated to building trucks only, has been very costly. The plant was idled for three months last year. This year, Tundra pickup sales are running about 40 percent of the levels originally forecast.
And the folks back in Japan are pissed about that, finger pointing abounds back and forth across the big pond.
Quibbling turned to finger-pointing as Toyota's results deteriorated dramatically. The company has forecast a $3.5 billion loss for the fiscal year ended on March 31 -- a stunning $20 billion swing from the previous year's record result.
Toyota will announce a first quarter loss and have said that they will be trying to reduce it's dependance on the U.S. market.
My, how the mighty have fallen.Posted by Quality Weenie at April 8, 2009 02:09 PM | TrackBack