Re: Toyota feels bite of U.S. downturn

Any account will tell you, keeping ANY new vehicle longer than four years or
60,000 miles, is not a good idea! Because of the amount of capital as well
as the cost of acquiring that capital, needed to maintain a vehicle any
longer and the capital needed to replace that rapidly depreciating asset,
any perceived saving are negated. When "cost" of loss of use is factored
in, the loss is even greater.

"Wickeddoll." <wickeddollnofeckingspam1958@xxxxxxxxx> wrote in message
news:g02ful.2u0.1@xxxxxxxxxxxxxxxxxxxxx
"Ray O"
"C. E. White" ...

Times must be tough if Toyota can only net $12 billion - that's only $1
billion a month.

I thought the article over stated the case as well. But you only have to
look back at Ford's performance from a few years back to see how fast
things can go bad. Another idiotic move like wasting billions on the
Turdra and the billons in profit can turn into losses overnight. I'll
bet the Toyota upper management wishes they had spent that money on more
hybrids instead of a product they are practically having to give away to
move off the lots. It had loser written all over it when introduced, and
the Monster Turdra looks like the stupidest move Toyota has made since
they shipped the first Toyopet over here many many years ago.

Ed


I think that the point of the article was that Toyota isn't forecasting
an increase in profits like they have had for the past 6 or 7 years. 15
years ago, Toyota had something like $30 billion in cash reserves, and if
they stuck to their game plan, they added a billion or two every year
since then. Even at $1 billion per year, the cash reserves would be
around $45 billion today.

Even the poor timing of the Tundra wouldn't make much of a dent in
Toyota's rainy day fund, and the $15 billion they netted last year was
after putting incentives on various vehicles, including the Tundra, and
spending R&D money to develop a hybrid system for every series vehicle.

Toyota's upper management is ultra-conservative, and that has gotten them
through previous downturns in the economy in a better position than its
competitors. Since Toyota is starting this downturn in such a good cash
position, I suspect that Toyota will come through this downturn in better
shape as well.
--

Ray O

I'm no industry analyst, but even I can see the simple logic in Toyota's
recent successes. They were selling the right thing at the right time,
and reaped the profits from same.

Further, though I know this'll make some folks here crazy, people simply
don't need to buy a new Toyota as often as they would some other brands
(even foreign brands; I'm not saying just domestic). I might have gotten
a new car, if they dollar were stronger; my daughter is disappointed that
she won't be getting my Echo, since my son got hubby's FX-16 at about her
age. (there, there, Hachi). As it stands, not only do I not want another
car, I just don't need it. My Echo is a workhorse that shows no signs of
eminent demise.

Natalie



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