Toyota may post first loss in 70 years

Toyota LogoHere’s something to put the gravity of the current situation automotive industry into perspective. After 70 continuous years of profits, Toyota is predicted by some Japanese business media to likely post its first annual parent-only operating loss in 70 years thanks to low sales and the appreciating Japanese yen. It’s last operating loss was in the 1937-1938 financial year, which was also its first year of operation.

Toyota is a company that has remained resilient throughout various recessions in the past. It is a company that can quickly react to market conditions. You only have to look at the big difference between the Toyota Corolla SEG AE101, which some called a “mini-Lexus” and the Corolla AE111 “recession car”, which was a car built during a recession so ended up having many corners cut and designed to be cheap to build.

Some argue that the Toyota Corolla has just not been the same since that turning point but even despite that, it’s just not enough during this period of time which some call the “mother of all recessions”.

But not all Japanese media share these sentiments. Those that are predicting the loss are of the opinion that the second half results will wipe out the profit that Toyota made during the first half of the current financial year. Most of the others agree with the 2nd half losses, but think the profits gained in the 1st half would not be totally wiped out, which would mean a small annual profit.

Source 1, Source 2

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • delos3nos (Member) on Dec 21, 2008 at 8:03 pm

    well you make some and you lose some that is business

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  • erichigc (Member) on Dec 21, 2008 at 8:09 pm

    Hei Toyota,

    I do suggest you to bring all the good cars u could not sell (especially those not yet shipped to States) to South East Asia Region. I believe many of us have the buying power to buy the good cars, at least better than those local Vios and altis model. Bring down ur profit and sell it at Vios price. No point spending millions renting parking lot in US harbour. I will be the first one to clear ur very one stock.

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  • Xx- Ferrari -xX (Member) on Dec 21, 2008 at 8:29 pm

    something which i expected…

    Like or Dislike: Thumb up 0 Thumb down 0
  • TheophilusChin (Member) on Dec 21, 2008 at 8:58 pm

    Some “goat farmer” is going to be REALLY REALLY happy about this news.

    Anyone knows who I’m refering?

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  • tokmoh (Member) on Dec 21, 2008 at 9:25 pm

    Ohh, I know very well, Theo :) That goat farmer in MTM lol.

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  • jolly_idiot (Member) on Dec 21, 2008 at 9:39 pm

    How about Honda? Are they making loss? This coming recession is really a big boom for all industries. Worry on our future… Sigh…

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  • juicer (Member) on Dec 21, 2008 at 10:11 pm

    vios and coroola altis latest use same old engine found like those in previous generation while honda uses new engine for their city and civic.

    not only altis rear is dem ugly , civic looks more nice and more horsepower too.

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  • rodimus (Member) on Dec 21, 2008 at 10:33 pm

    Well as v all can c, the US big three is facing the deep shit problems, Toyota is one of the major player overthere too, and it’s just facing the losess only; is already consider lucky……. :p

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  • csv (Member) on Dec 21, 2008 at 11:33 pm

    wow 70 years of straight profit.

    no harm, a little loss here and there keeps them on their toes….lol.

    i’m sure toyota has some way to deal with it. it is afterall TOYOTA.

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  • erichigc (Member) on Dec 22, 2008 at 12:18 am

    In term of business strategy, Honda is far more conservative than Toyota (of cos not in new technology). Furthermore Honda just pulled out from F1. That will save her alot of cash…

    Hope she is far better than toyota now, in term of financial position.

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  • lfsism (Member) on Dec 22, 2008 at 7:59 am

    ups and downs in a company….. just that don’t start seeing rain of ppl in Toyota…

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  • rexis (Member) on Dec 22, 2008 at 8:50 am

    juicer said,
    “vios and coroola altis latest use same old engine found like those in previous generation while honda uses new engine for their city and civic.

    not only altis rear is dem ugly , civic looks more nice and more horsepower too.”

    – – –

    juicer, have you own a Toyota and Honda before? I own neither car, by a few of my uncles are fans of Toyotas. They have gone thru Prado, CRV, old Camry, Harrier, Estima, new Camry, and has recently brought 3 Altis in one go.

    I have asked one of them did he consider Honda, he commended that Honda spare parts more expensive and not as durable compare to Toyota.

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  • charles27 (Member) on Dec 22, 2008 at 11:22 am

    haha.. second half honda launch many new model and facelift maa.. mazda as well. fight until toyota bleeding already.

    maybe the cost when up cause of the vehicle recall that we seen last time. lots of expenses went into the account.

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  • bmpower (Member) on Dec 22, 2008 at 11:27 am

    Loss?

    Close shop lah!!!!

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  • BanyakMasukWorkshop (Member) on Dec 22, 2008 at 11:47 am

    rexis said,

    December 22, 2008 @ 8:50 am
    ______________________

    its the same argument all over again.. people who are toyota fans will say the honda costs more.. etc. etc. your uncles are toyota fans.. of course they will say its the best car to own.

    bmw’s have a reputation for high spare parts, breaking down.. etc. etc. etc… but many people still aspire to own one.. but i’ll tell you right now, its only a perception. i think bmw’s are pretty reasonable to maintain and use daily. but dont take my word for it.. i’m a bmw fan after all..

    but on the financial side, i think the carmakers who depend on and have invested heavily in the US are taking the biggest hit right now.. which is why both toyota and honda are having a hardtime now.

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  • PTAllTheBest (Member) on Dec 22, 2008 at 12:12 pm

    rexis said,

    December 22, 2008 @ 8:50 am

    show off…?
    i think ur uncles r all been brainwashed by the toyota brand… i have to admit honda put more technologies in their car…

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  • Sex is wonderful, but it's like champagne.If you're forced to have four glasses at every meal you start to fantasize about water. (Member) on Dec 22, 2008 at 1:43 pm

    very good

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  • autojohndoe (Member) on Dec 22, 2008 at 2:57 pm

    Loss? unbelievable….

    after all the tight budget in Toyota Production System, they also facing losses?

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  • DRC (Member) on Dec 22, 2008 at 4:30 pm

    I wish Honda improve their technology towards durability and not just ‘more powerful, better handling, better design and more equipments/gadgets’ and the ‘canggih’ thing malfunction after a while and we have to spend lots of money repairing it. Goodies become headaches. Also, I hope every car manufacturers learn from Toyota: treat each of your customers as if he/she is your boss. By then, I will not have to buy those empty boxes/ugly cars.

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  • bmpower (Member) on Dec 22, 2008 at 4:37 pm

    proton loss = close shop & factory lah….

    toyota loss = PLEASE! CLOSE SHOP AND FACTORY LAH!..

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  • mystvearn (Member) on Dec 22, 2008 at 7:41 pm

    The full story:

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aIbkwkK56i0g&refer=home

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  • Sex is wonderful, but it's like champagne.If you're forced to have four glasses at every meal you start to fantasize about water. (Member) on Dec 23, 2008 at 10:05 am

    everybody also loss. except proton. because of G support

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  • autojohndoe (Member) on Dec 23, 2008 at 9:21 pm

    everybody also loss. except proton. because of G support

    ********************

    i think u r just born in malaysia to come with that statement…

    what about the time that proton loss, G also support the loss?

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  • Sex is wonderful, but it's like champagne.If you're forced to have four glasses at every meal you start to fantasize about water. (Member) on Dec 24, 2008 at 9:28 am

    autojohndoe said,

    December 23, 2008 @ 9:21 pm

    everybody also loss. except proton. because of G support

    ********************

    i think u r just born in malaysia to come with that statement…

    what about the time that proton loss, G also support the loss?
    ——————————————
    yes

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