Investors Warn Prius Will Not Save Toyota Concern Focuses On Lexus Future

Investors Warn Prius Will Not Save Toyota Concern Focuses On Lexus Future
Toyota Motor Corp.’s new Prius hybrid won more than 80,000 orders before even going on sale, prompting outgoing President Katsuaki Watanabe to call it the “savior” for Japan’s most unprofitable carmaker. Investors don’t share his faith.

“Toyota shouldn’t be happy just because Prius orders are going up,” said Yuuki Sakurai, general manager of financial and investment planning in Tokyo at Fukoku Mutual Life Insurance Co., which manages the equivalent of $54 billion in assets. “What should worry it now is Lexus and high-end customers may shift to driving a Prius.”

Japan’s biggest automaker slashed production costs for the Prius by 30 percent in response to dwindling sales of bigger, more-lucrative models. Lexus sales in the U.S., the world’s biggest auto market, have fallen 37 percent this year through May, mirroring an overall plunge in demand caused by falling wages and rising unemployment.


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pagemanpageman - 6/10/2009 3:27:40 PM
+4 Boost
Lexus could just doupe the Prius and label it the "EF180" standing for Environmentally Friendly 1.8L. Slap some leather, wood trim interior and some other fancy tech stuff and there you go. Increased production of the Prius platform, and make the upper class buy it. Slap a larger motor than the new 1.8L. Heck, jam the 2.7L in it and kaboom, rocket ship with less fuel economy.
No real solution for Toyota on this one. As they say, the tallest tree gets hit with rain first.


WillisWillis - 6/10/2009 3:38:09 PM
+1 Boost
LOL


Agent009Agent009 - 6/10/2009 3:47:07 PM
+3 Boost
They have done that to a degree already with their latest model.

No one really know just how fat Lexus profits really were and how much they propped up Toyota's profitability but it is a bit premature to say Toyota will suffer any fate similar to GM. but these days anything is possible.


Agent009Agent009 - 6/11/2009 8:42:32 AM
-1 Boost
You can actually thank Bloomberg on this one.


LexusKindaGuy12LexusKindaGuy12 - 6/11/2009 1:05:42 PM
+2 Boost
enter HS250h


pennfootballpennfootball - 6/10/2009 3:47:05 PM
+3 Boost
it's called the Is 250h and boy is it FUGLY! The engine is only 2.4-2.5 litters and it is very "special." Boring cars should all die!


Agent009Agent009 - 6/10/2009 3:47:50 PM
+5 Boost
some people like boring. They can blend into the crowd.,


inspirion7inspirion7 - 6/10/2009 4:03:12 PM
+1 Boost
Not everyone want a car like this. Some like to be individualistic as well. Thank God for choice.


Joe_LimonJoe_Limon - 6/10/2009 5:08:33 PM
+1 Boost
Thats why Toyota made Scion? To be individualistic? ohh wait those are even more boring then Lexus's. Has any one actually seen a modded one on the street?


inspirion7inspirion7 - 6/10/2009 10:51:33 PM
0 Boost
Thats why Toyota made Scion? To be individualistic? — Joe_Limon


So going from a milk toast model to a Tonka toy. Wow now that is progress. Yeah, individualistic for a 18 year old.


"Toyota is a phenomenon and so is Lexus, therefore they will remain a force to be reckon with no matter what economist and investors predict about them. "— lexworld


Bloomberg
Lexus sales in the U.S., the world’s biggest auto market, have fallen 37 percent this year through May, mirroring an overall plunge in demand caused by falling wages and rising unemployment.
Toyota’s sales of Toyota and Lexus brand vehicles in the U.S. have plunged 39 percent this year through May to 638,795 units.

“Toyota needs the cash cow models in the U.S., like the Lexus and the Tundra to do well,” said Masayuki Kubota, who oversees about $1.9 billion at Daiwa SB Investments Ltd. “Toyota is probably expecting a return from the Prius for the long-term. (this was a god send for Toyota)
For now, Toyota’s push into the U.S. market for large pickup trucks is compounding its financial problems."


Dude no one is predicting anything. Toyota is stating it's loosing profit and market shares. They didn't plan on the Tundra taking a crap( the profitable truck segment, last domain of the big 3 that still hasn't been taken) and the economy doing its thing.

Most individuals that will purchase luxury will go to the established premium companies and no one sided with me when I said as such. I was Japanese bashing. Look at most sales results.





MaulvaderMaulvader - 6/10/2009 6:11:01 PM
+3 Boost
"Japan’s most unprofitable carmaker"

When did this happen?!?


Joe_LimonJoe_Limon - 6/10/2009 6:22:08 PM
+5 Boost
When they didn't ramp down production and lost 6.4 billion in 3 months.


lexworldlexworld - 6/10/2009 6:53:45 PM
-3 Boost
Investors can warn all they want to Toyota is a whole lot smarter than you think. Some things are just meant to be in life. Toyota is a phenomenon and so is Lexus, therefore they will remain a force to be reckon with no matter what economist and investors predict about them. This is the smartest, wisest, most successful automaker known to man...Period. You can't make people buy a Toyota or Lexus but, most humans are predictable. Give'em their cake and ice cream to and they will eat it!!


enthusiastx11enthusiastx11 - 6/11/2009 12:42:11 PM
-1 Boost
"Toyota is a phenomenon and so is Lexus, therefore they will remain a force to be reckon with no matter what economist and investors predict about them."

really? sounds like you're some sort of religious fanatic. in case you haven't noticed, the US market (toyota's most important) has declined from over 16 million units to about 9. EVERYONE is hurting hugely. even the mighty toyota is devastated. get real.


commander104commander104 - 6/10/2009 8:06:22 PM
+1 Boost
What should really worry Toyota is when the potential Camry and Corolla buyers discover Sonatas and Elantras


0to600to60 - 6/10/2009 9:32:40 PM
+2 Boost
Then what will happen? THose have been out for a long time as well as many other competing cars introduced yet the corolla has remained the greatest volume seller of all time and the camry the number 1 seller in america.


MrBratwurstMrBratwurst - 6/11/2009 7:41:58 AM
0 Boost
— commander104:

| What should really worry Toyota is when the potential
| Camry and Corolla buyers discover Sonatas and Elantras

Volkswagen will be much more worried when its loyal European customers discover the all new Kia No. 3:

http://images.google.com/images?hl=en&ie=ISO-8859-1&q=Kia+No.3

Same will happen when the face-lifted Kia Cee'd (+ eco_cee'd) step into the market.

Both offer excellent look, high quality, turbocharged gas engines, well performing diesels, competitive price and a very long warranty.

Volkswagen dominated the European market stronger than Toyota did in the USA. So they have much more to lose in favor of Koreans there.


inspirion7inspirion7 - 6/10/2009 10:57:39 PM
+1 Boost
The Kia Soul is definitely a model up from the xB for sure.


inspirion7inspirion7 - 6/11/2009 2:53:51 PM
+1 Boost
? uh I would't go that far. The Prius, Fusion, Tesla , Taraus or Volt would get it before the Soul will.


JWalkerLegrandeJWalkerLegrande - 6/11/2009 8:42:42 AM
0 Boost

“Toyota needs the cash cow models in the U.S., like the Lexus and the Tundra to do well,” said Masayuki Kubota

OMG, the TUNDRA ??? As a cash cow ??? Has this guy ever seen a US Toyota dealership ? Flooded with MY08 Sequoias and MY09 Tundras. The Tundra flop alone cost close to 3bn to Toyota, including a failed product and a cost overrun underutilized, brand new plant.

Lexus has indeed been a cash cow, selling the Camry architecture with a $15K premium badged as the Rx. The rest of the line is unimportant as you can expense all the overhead on this one model easy. That is, until they introduced the MY10 model, the design of which is controversial to say the least. I don't see how they will sustain this cash cow without actually building a more appealing Rx.



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