Toyota Makes First Loss In 71 Years

[GearHead]

Toyota announces $2.5b operating loss

By North Asia correspondent Mark Willacy

The world's biggest car-maker, Toyota, says it is facing an unprecedented crisis after announcing its first operating loss in 71 years.

The company is blaming the downturn on a slump in world demand and the rising value of the Japanese yen.

Facing a packed media conference, Toyota president Katsuaki Watanabe revealed the company had posted an operating loss of $2.5 billion for the financial year.

Mr Watanabe said the world's largest carmaker was facing an unprecedented crisis because of the global financial downturn.

The company has cut back on production, and will now freeze the opening of a new plant in the United States and scale down output in India.

The Japanese car maker is considering slashing more jobs after forecasting the loss.

Toyota is already in the process of laying off thousands of temporary and part time workers as the company struggles to deal with a slump in demand.

Japanese Prime Minister Taro Aso says Toyota's woes highlight the reach of the financial crisis.

"I think the global economy has just embarked on building a new order after such financial chaos. And I understand we have a responsibility to meet such expectations," he said.

"Decisive action is called for to tackle such a once in a century [event]."

Source :- http://www.abc.net.au/news/stories/2008/12/22/2453251.htm

[Devinda_Z]

GTAm beat u to it this time round i'm afraid..

post #12

http://forum.autolanka.com/index.php?s...amp;#entry83723

...your slipping machan

Further gloom,

http://www.autocar.co.uk/News/NewsArticle/AllCars/236694/

http://www.autocar.co.uk/News/NewsArticle/...oncepts/236708/

http://www.autocar.co.uk/News/NewsArticle/...-Rexton/236707/

[Devinda_Z]

Toyota offers buyouts to U.S. workers

TOKYO/DETROIT (Reuters) – Toyota Motor Corp (7203.T) offered buyouts to some 18,000 U.S. workers and said it would cut pay for executives and blue-collar workers in North America, and an analyst warned it may soon cut working hours in Japan.

The world's No.1 automaker, struggling as the global credit crunch sends auto sales sliding, said it would shut down production for more days in April at plants in the United States, Canada and Mexico and would cut executive pay and bonuses.

"The global economy is in a once-in-a-century situation ... Nobody knows if these steps will be enough given the uncertain outlook," said Shotaro Noguchi, an analyst at Mitsubishi UFJ Securities.

"Inventory levels are still high, and a recovery in demand is not in sight yet. Toyota may have to adopt work-sharing in Japan in line with production cuts, at the same time as reducing overtime work."

The cost-cutting underscores how the world's top automaker and a perennial blue chip in a notoriously volatile sector is struggling amid the worst auto slump in decades.

Toyota said the North American moves were intended to keep as many of its North American workers on the payroll as possible.

"We hope the new measures will help us adjust while protecting jobs," Toyota Motor Engineering and Manufacturing Vice President Jim Wiseman said.

Toyota is on track to post an operating loss of some $4.95 billion for the year to March 31, the first group-wide operating loss in its 70-year history.

Shares of the world's largest carmaker ended flat on Friday, underperforming a 0.5 percent rise in Tokyo's transport equipment subindex (.ITEQP.T).

Noguchi said Toyota's North American announcement detailed previously disclosed plans to cut costs by 500 billion yen ($5.5 billion) in the year from April 1.

Toyota said on February 6 it would slash fixed costs, including labor and other costs, by 10 percent in the year to March 2010, partly by reviewing employment terms globally.

SLIDING SALES

The automaker has cut North American production of top-selling cars such as the Camry and Corolla after sales in the United States, its largest market, fell 15 percent in 2008.

It has also suspended work on a new plant in Mississippi that was due to produce its Prius hybrid car beginning in 2010. Rivals Honda Motor Co Ltd (7267.T) and Nissan Motor Co Ltd (7201.T) have also been forced to cut output.

Toyota said the buyout program would not be offered at two plants where its workers are unionized.

Those are the joint venture manufacturing operation it has in California with General Motors Corp (GM.N) and a truck assembly plant in Tijuana, Mexico.

Toyota spokesman Mike Goss said it expected most cost savings to come from the executive pay cuts, lower bonuses, frozen wages and savings from a 10 percent cut in factory work hours.

"In this economy we don't expect many people to take the exit program," he said.

Such buyout programs have become common in the past three years at U.S. rivals GM, Chrysler LLC and Ford Motor Co (F.N).

Both GM and Chrysler, which have received U.S. government funding, are offering incentives to hourly workers to retire or leave the payroll.

Toyota, whose sales fell 34 percent in January, is also planning to implement a program at some plants that would reduce work hours for a two-week period to 72 from 80. As a result, workers would be paid 10 percent less.

The automaker has not yet decided which plants will adopt the new program, Goss said.

Like its rivals, Toyota has been stung by the collapse in U.S. demand for cars and trucks, a downturn that accelerated in October and November amid tightening credit and deepening consumer uncertainty.

U.S. auto sales in January plunged to an annualized rate of 9.5 million, the lowest in 27 years.

Toyota has about 30,000 workers in its North American manufacturing operation.

That includes about 25,000 who are paid hourly. Toyota's two Canadian plants employ just over 6,000 workers. Another 1,000 work at its Tijuana plant.

($1=91.12 Yen)

(Reporting by Yumiko Nishitani in TOKYO and Poornima Gupta in DETROIT; Editing by Hugh Lawson)

Source : http://news.yahoo.com/s/nm/20090213/bs_nm/us_toyota_jobs_5

Edited February 20, 2009 by Devinda_Z

[Devinda_Z]

New Toyota dealership in Oakland closes

By David Morrill

Contra Costa Times

Posted: 02/24/2009 06:22:42 PM PST

uperior Toyota is shown on Thursday, Feb. 19, 2009, in Oakland, Calif. The newly opened dealership, located near Hegenberger Road in East Oakland, closed on Tuesday, Feb. 24. (Jane Tyska/staff)

The recently opened Superior Toyota of Oakland hoped to be a rare example of an auto dealership that could swim against the harsh economic tide.

On Tuesday, employees were informed the 200,000-square-foot dealership at 8181 Oakport St. at Hegenberger Road would be shut down at the close of business Tuesday. It came as a surprise as the grand opening of the site was to be scheduled soon, and cars were being placed in the window fronting Interstate 880 this week.

Even a huge sign near Oracle Arena declared the site "now open."

While it's a Toyota dealership, owner Michael Kahn said Nissan actually provided the financing for the new building.

"In turn, with things getting very poor with the economy, they pulled out of the deal," he said. "I was left holding the bag with no financing.

"So we made the decision (to close) yesterday," he said. "I can't buy any more cars. Can't sell anything. The cars are still on the lot, but Nissan owns them now."

The dealership, which also sells Scion, is part of the Superior Auto Group, which closed all its locations. Superior Nissan of Fremont also shut down effective Tuesday. The others are in Southern California.

"We just set up," said Kahn, who has been in the car business for 30 years and owns other dealerships around the state. "We got in here in December when we moved over from Alameda, before the building was done. We officially opened up this week. We just finished all theconstruction, the lights went on, the signs went up. Our (sales) numbers immediately went up. And now this."

The closure includes not only the sales department but also the large service department at the site, Kahn said. About 100 employees will be affected, he said.

"I'm kind of in a state of shock because we thought we had such a bright and opportunistic future here, and with this, it just leaves an empty taste," said Akie Alifragis, customer relations manager of Superior Toyota of Oakland. "When we were told (Tuesday morning), some of our employees broke down."

During a tour last week, Alifragis was confident the more than 40 service bays, having all services and facilities under one roof, and as many as 1,200 cars on the lot at a time would lead the dealership to success. But in the end, it wasn't enough to shake the economy, he said.

Vehicle miles traveled last year fell by 107.9 billion, or 3.6 percent, the Federal Highway Administration said in a report last week. More than 880 dealers have closed across the country, with most coming in the fourth quarter, according to the Detroit-based consultant Urban Science.

"I think the economy has taken such a turn that there's some things you can't do anything about regardless of how hard you try," Alifragis said. "It's just a really tough time right now."

Oakland City Councilmember Larry Reid (Elmhurst-East Oakland), a supporter of the dealership project moving to his district, was greatly dismayed at the loss to the city.

"We'll have this big, empty building there," he said. "Mike's dealership was the largest Toyota dealership in Northern California. He spent $36 million building this new facility. The sales have been going up, so this is a big loss."

For customers who have bought new cars at the dealership, their cars are under warranty, and any other Toyota dealership can take care of maintenance issues.

The completion of the dealership was part of Oakland's redevelopment plan and was to create momentum for the "Coliseum Auto Mile," which includes Coliseum Lexus of Oakland and Infiniti of Oakland.

It was also to create "a significant source of sales tax revenue for the city," according to a publication released by the Community and Economic Development Agency of Oakland.

The deal itself was completely privately funded.

The building will remain intact for the time being, but if it is converted to office use, it would add 200,000 square feet to the Oakland Airport market that has a vacancy rate at about 21 percent, according to a recent fourth quarter by CB Richard Ellis.

Source : http://www.contracostatimes.com/search/ci_...acostatimes.com