Toyota already Says It May Miss Global Sales Goals For 2008

``The rapid fluctuation of the currency and the surge in materials costs are headaches for us,'' Vice President Tokuichi Uranishi said in Seoul today. ``If this continues, frankly, it'll be tougher to meet our goal.''

The company, aiming to sell 9.85 million vehicles this year, plans to boost sales in emerging markets such as China to offset slowing demand in the U.S. and Japan, Uranishi said. Industrywide U.S. sales tumbled 6.3 percent in February, the seventh drop since June.

The dollar traded at 99.20 yen as of 3 p.m. in Tokyo. The yen has gained about 13 percent against the dollar this year, cutting profits at Toyota and other Japanese automakers. A 1 yen gain in the Japanese currency against the dollar cuts Toyota's annual operating profit by 35 billion yen ($353 million), according to the automaker.

Toyota's fourth quarter-earnings estimates are based on an exchange rate of 105 yen to the dollar compared with 119 yen in the same period in 2007.

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toolatetorace - 3/20/2008 10:49:13 PM

-2 Boost

It's amazing that the yen has held up to our dollar for such a long time before it finally fell, whereas many other countries have flushed our dollar further down the toilet than the Japenese have . Could it be that the wanted to keep selling more cars here????

JWalkerLegrande - 3/21/2008 8:50:16 AM

+3 Boost

Fact of the matter is, the Japanese government continuously inflated the value of the yen to boost exports. Translating to your words, they deliberately held the yen DOWN to our dollar for such a long time before it finally WENT UP. The dollar has significantly lost value to the yen recently, that is why Toyota is so concerned - they are growing market share on a market where the currency buys less and less yen. In other words, they earn less money on the cars they sell, thanks only to the currency effect (20% change within a year can really hurt you in a market where the margins are around 10%).

abcd - 3/21/2008 11:26:31 AM

+3 Boost

JWalkerLegrande - "Fact of the matter is, the Japanese government continuously inflated the value of the yen to boost exports. Translating to your words, they deliberately held the yen DOWN to our dollar for such a long time before it finally WENT UP."

nonsense . dollar is going down to every currency not only yen(e.g. euro). for what they held yen down to dollar ? to earn more yens ? and what when they have that same amount of dollars so they are in the same . only think they want (and everyone else) is stability of currency . in japan workers are earning money in the same level as in USA and europe if is stability , no matter what is the value of yen (they have more or less yens but that same amount of dollars,euros). japan haven`t any natural resources , they are buying it from other countries , if they would keep yen down to dollar they must simply pay more yens . so for what japenese goverment have wanted to hold yen down like you say .

DieselRules - 3/21/2008 2:12:54 AM

+2 Boost

In this market, no large maker will hit targets.
However Toyota, with a bigger emphasis on the "business" portion of running an auto-business than competitors, has identified the trend and announced the inevitable first.

They probably did it to prevent share-holders from suing them later in the year when their stock dips (as all automakers will likely see in the next year or 2)

0to60 - 3/21/2008 10:02:24 AM

0 Boost

Thought they were now the #1 automaker beating out GM

1970toyotamarc - 3/21/2008 12:20:19 PM

+1 Boost

GM counted an independent auto company in which they own a stake to inflate its 2007 sales figures. That would be like Ford counting Mazda (which they do not do). Shady.

Toyota is number one. I like saying that, especially when it is factually accurate.