Toyota Takes One On The Chin: Profits Fall 28% For The First Quarter of 2008

love this

ouch.

Here is a stat for all the pro-Lexus and Toyota fans that cant wait to bash BMW and everyone else cause of their great residual values and how they dont lose money.

Last sentence " Toyota set aside ¥9 billion this quarter to cover leased vehicle losses." What does 9 billion yen convert to in American dollars for the amount of money that Toyota & Lexus will lose due to slumping resale value and inflated residuals ? lmao ... it is alot more than BMW loss ..

Isn't Toyota like a hundred time bigger than BMW? So, keep it in perspective. BMW took a harder hit.

Think about what you're saying. If they're 100 times bigger, then a 28% drop in profits for Toyota is astronimical compared to a 33% drop for BMW. The percentages are similar, but imagine how much more money that is that Toyota just lost.

viso . Yes toyota is a larger company. Year to date Lexus is down almost 10% more than BMW. I promise you that if Toyota broke out the figures that Lexus would be alot further down than BMW. The 9 BILLION YEN equated into US dollars is ALOT more than 300 to 400 million that BMW wrote off in lease values. This is just for leases. VISO think of it like this, LEXUS in the US is for the last 3 months is down 22%, 19% & 24%. That is huge and with no new models aside from the RX due out for the next few years, they are in alot of trouble.

9 billion yen is about $85 million based on the recent exchange rate.

LOL @ BMW4me4ever after sracekili's comment. Guess you should have done the math before opening your mouth BMW4... LOL

lol...I'm a fan of both BMW and Lexus, so I'm good with what you said 'cause it's true.

surprise surprise. Where are huu76 and Staar? This sounds EXACTLY like what I said the other day. It's too bad Toyota won't release the information JUST FOR LEXUS, because I promise you that 33% profit drop BMW had that you were going on and on and on about would look pretty nice compared to a brand who can't sell cars outside the U.S. and is getting just destroyed right now by the exchange rate.

But I'll be the bigger man here and accept your apologies. I know you won't offer one because you're petty trolls, but I'll accept it anyway and let bygones be bygones... until the next moronic troll thing you say.

Ummm...isn't any profit a good thing? Earning $3.2 billion (source detnews.com) for the quarter I would consider as being good. I mean this is the amount you make after paying off all your employees, supplies, and costs to do business...you're still putting that much in the bank. I mean it's better than losing $15 billion for the quarter, isn't it????

I don't think anyone was comparing GM to toyota here

I'm one scared salesman. Shakin in my boots!!! Sales are down! Oh no! I won't get paid! No more lay downs! Oh wait, food still sells, and Wendy's is hiring. Sweet.

So it isn't just American car companies that depend on truck and SUV sales

Yes this is a big loss for Toyota, but they tend to study and learn from mistakes. Toyota is a very process driven company and will make adjustments quickly. Toyota has been owning up to mistakes and is now making changes needed to thrive, like building the 2010 Prius in Alabama. Other companies and the govt. could learn something from Toyota.

see below. toyota is doing horriby in the US market.

that's globally. profit is down FAR MORE in north america where they have to give away cars. per today's new york times, "Toyota said that its net income in North America fell 57 percent, to 69.1 billion yen in the quarter."

yes, that's profit down 57 percent--about 9 times greater decline than units sold.

http://www.nytimes.com/2008/08/08/business/worldbusiness/08toyota.html?_r=1&ref=business&oref=slogin

Hey huu76, Lexus1, and Staar -- guess who else would be affected similarly? That's right, Lexus. That's what happens when no one outside the U.S. buys your cars and the economy of the only market you're successful in is in the toilet.

Ordinarily I wouldn't gloat or throw out the perverbial "told you so"... but in your cases I'll make an exception, because you jackasses deserve it. Where's the troll smack talk about BMW profits dropping 33% for the quarter now? I bet you know where you can stick that. You must be thanking God, Sheba, Mohammed, and any other deities that will listen to your sorry asses that Toyota won't release Lexus's financials indepently, because you'd look really, really stupid right now.

End of gloating.

just the facts kids.
deboost all you like.
it's not an opinion.

profit down 57 percent.
that's horrible financial news.

you're making money? whatcha driving?

Toyota's sales didn't drop 57% smart guy, only the money did. You were all over BMW for a 33% profit drop. Well, Mr. Finance, you're lucky Toyota shields Lexus from public scrutiny, because their numbers would be even worse. Toyota, who does successfully sell cars worldwide, is bouying Lexus, who does not. If Toyota's numbers are down that much, primarily because of the U.S. market, imagine how much worse Lexus's numbers are, who doesn't sell squat anywhere else. Lexus would be a giant red stain on Toyota's financial sheet... if they had the balls to release them. And until they do, you're a giant hypocrite.

Huu, this isn't 3rd grade -- just because one number is higher doesn't mean you're going to make more money. You see, if you're charging 6-9% and other banks are charging less, guess what? You're not making more money, because no one is going to contract on your paper. If Toyota Financial Services charges 8.5%, as you've said 100 times, then only an idiot would sign up for a loan through them when you can get 5% through another lender.

So which it? Is Lexus not charging 8.5%? Or is your buddy/brother/brother's buddy an idiot? I'm guessing "guilt by association". Hopefully you can at least figure out what that means.

For starters, Lexus gives you a free automatic transmission in their cars too, it's built into the price. Second, Lexus is offering 2.9% financing, not 8.5% (or 8.2%, or whatever -- the rate changes every time you tell the story, as does the person who bought the car). Finally, manufacturers don't "make" people put $8800 down. Banks do. And they only "make" you put $8800 down and give you a finance rate that is 3% over prime on top of it if your credit sucks. So that has nothing to do with the car manufacturer, it has to do with your friend/brother/brother's friend/whoever is buying the imaginary car in your story this time not paying his bills. Tell him to start making his payments, next time he can take advantage of the special rates Lexus is running.

I'm in the U.S. there chuckles. I don't care what BMW or Lexus do in Canada. BMW and Lexus hardly care what they do in Canada, they're more focused on their largest market, which is the U.S. Here Lexus is running 2.9%. "Facts suck, don't they?"

that why people aren't taking loans through TFS. they're going to other institutions.

last I checked, and I mentioned this already, you are not required to take out a loan through Toyota Financial when you buy a Lexus. Pretending for a second that you're not totally full of $hit, if your brother/friend/brother's friend got an 8.5% loan with $8800 down it's because he has bad credit, and that's hardly the fault of the lender. With good credit a normal bank would have given him 5% with nothing down. So either he has bad credit, he's stupid, or you're a liar. And frankly I don't really care which one it is, I've proven my point. Repeatedly. Next.