Toyota Out Does GM By Losing $6.9 BILLION In Q1 - Predicts $8.6 Billion Loss For 2009

I wonder if huu76 was right when he said Toyota could "lose $1 billion and not even miss it". If he's right and they don't miss a measly $1 billion, do you think they miss the other $6 billion?

hahaha... maybe... So much for the deep pocket R&D programs for Toyota.

ha ha

Hmmmm....Gives some credence to the phrase "The bigger they are, the harder they fall"!

The latest report shows they will lose over 1,000,000 vehicle sales in 2009.

That is a lot of hurt!

I can imagine that Toyota will lose $15-20b this year.

Though it is a healthier company, it can not escape the overall downturn within the auto industry. And even though it makes small cars more efficiently than the US Big3, and sells them at premiums about their US competition; those sales may not generate enough profits to keep the cash flow up.

We know Toyota is making very little profit from the additional sales of their Prius and not many consumers are buying their large vehicles similarly to the domestic brands. Loses are to be expected.

HA HA, yeah baby!!! EFF YOU TOYOTA.

Worse than GM? Ouch. That hurts just like a punch to the ol' Prius.

Toyota has a tankful of cash
http://money.cnn.com/2009/05/08/autos/toyota_cash_sales.breakingviews/index.htm?postversion=2009050814

if toyota has money, then why did they(along with nissan) beg the Japanese Government for bailout money? To go on vaca to the bahamas?

http://www.newser.com/story/52285/toyota-asks-japan-for-a-bailout.html

Ford didnt ask for money this year, Hyundai didnt, and neither did Subaru.

plenty of cash? idk about that...

What people forget is that the worst part fo the loss came from over exposure to the US market, the yen appreciation against the dollar and massive over capacity for the western market.
Toyota however is still a triple AAA player. (Its stock price reflects that). From a financial analyst perspective they still are the industry benchmark in terms for productivity.
To compare them to GM is like saying just because you have a chipped tooth because of an accident you are exactly like the homeless hobo sniffing gasoline under the freeway, because he too has a chipped tooth.
GM debt trades worse than junk bond status. There is no market for it. In lay man terms that means nobody ( other than a govt entity) will lend it money on any terms based on their financials.
While toyota's problems have hit them, their credit rating is still AAB ( adrop fromn the AAA investment rating ), which allows them to have huge access to liquidity.

Reading their balance sheet also shows the huge writedowns that Toyota has taken on capacity investments. In layman terms that means that they havent had so much of a cash loss as much as used this oppertunity to rebase their assets.
This is a fairly smart and kindof unusually aggressive move from a Japanese major like Toyota.
General predictability, Toyota seems to have taken huge and i mean huge steps to come to terms for a much smaller NA market. Look to see subsequent quarters will show break even or small profit ( Medium risk)
Stock price predictability - hold/buy (averaging analysts predictions)

You are very correct that has a very good rating however you have to ask yourself from who or whom will they be getting the money from. The recent stress test proved that American banks cant give them any so will they get it from a home market bank?

Ouch!

Watch out...Toyota has another surprise in store for the industry...but we'll need to be a little patient for this one.

the market for Fixed Income Securities (such as company debt ) is well and alive despite the problem with the banks (the massive liquidity injection by the Feds, European Banks, Asian banks) . Note that all mutual funds banks must hold securities of a certain rating at a set ratio of their capital reserves. AAB means that toyota debt security has a very liquid market.
The issue with Western banks holding risky real estate based securities that have AAA rating based on insurance (AIG !!) are the real issue for the meltdown.( including more esoteric instruments such as Debt swaps, whose amrket went tits up when Bush/Bernanke/Paulson decided to let Lehman fail).
Anyway gotta stop spouting financial geek info in wholesome Auto forum ..

"Relative to the value of their Yen investment, Toyota truly only lost just over $5 billion. You don't hear people calling this a staggering loss now do you (unlike BMW)."

The "staggering" $73 million loss by BMW was only called "staggering" on this website. Compared to just about every other make, BMW's loss was miniscule (Mercedes, for example, lost $1.5 billion).

Huu, listen, there's no point in arguing about this. $6.9 billion is $6.9 billion. You can spin it any way you want with exchange rates, etc. (hint: exchange rate fluctuations affect EVERY currency, not just yen -- that includes ze Deutsch and their Euros), but $6.9 billion is enormous. "Just over $5 billion" is enormous too. There's no way to make a loss like that a positive. I 100% believe they'll make it out of all this just fine, but don't piss in our faces and tell us it's raining.