Toyota Goes Back To The Drawing Board As Profit In U.S. Slips

Although many economists have begun to see light at the end of the recessionary tunnel, Toyota Motor America chairman Yoshimi Inaba claims that Toyota is not currently profitable in North America, even though the company has taken numerous cost-cutting measures in recent months. According to Inaba, Toyota is reviewing its entire U.S. operations plan, and among the major decisions facing the company is whether to open its new factory in Mississippi (still under construction) and what to do with the NUMMI plant in California.

The shell of the Blue Springs, Mississippi facility has been completed, but no factory equipment has been installed. Toyota had initially planned to use that plant to boost production of the Toyota, but then switched focus to the Prius when hybrid interest peaked last year.  Construction was suspended entirely last December amid the international economic meltdown and it's been sitting mothballed ever since. Inaba said that he hopes to move forward with development of that plant in the future, although the company is, like every other automaker, keeping a tight rein on production.

Joe_Limon - 7/21/2009 2:09:30 PM

+3 Boost

Didn't Toyota Score the biggest quarterly loss ever seen by an automotive manufacturer in the first quarter of this year? If they are still slipping does that mean they are getting worse?

WorldofLuxury - 7/21/2009 2:54:19 PM

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Who here won't mind having a good looking car that gets attention?
Toyota is just too stubborn with its conservative design theory.

toolatetorace - 7/21/2009 11:05:11 PM

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Mitchell, haevn't you got something else to do ??

fatandsassy - 7/21/2009 3:31:14 PM

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Toyota has done nothing for me with any of there lines. BYE! Adios, Could not care if I never see another freaking Camry .

tango - 7/21/2009 5:13:20 PM

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A very good idea in my book. How many companies that compete in NASCAR are profitable? NONE. Toyota needs to become JAPANESE again. That's what made them great in the first place. Not to say that being American is bad, but that's not Toyota's field. The last few comparo tests I read that invovled Toyota products had them come in behind KOREANS. They need to start making cars like the 1988 Corolla...virtually indestructable. Cars like the MR2...buckets of fun to drive. Automobiles like the Crown...luxury everywhere. All in a Japanese kind of way, serious and purposeful, but with a friendly smile and a bow.

bfghemicuda - 7/21/2009 9:02:05 PM

+2 Boost

The nascar camary drive train uses a Ford 9" rear with a V8 modeled after the previous R5P7 Dodge V8 Dodge sued and won the lawsuit with Bill Davis Racing when they were caught giving Toyota key design issueds from the Dodge V8.

toolatetorace - 7/21/2009 11:02:20 PM

+3 Boost

Right now there is not any companys making little or nothing at building cars . Before the economy crash all the companies in NASCAR were making money . Toyota wanted to get into to NASCAR to win people over to their program. They tried desperatly to win some of the all American races such as both races in Daytona and win in Michigan at all cost and failed so far . . They thought they were going to come over here with a copied engine , no less not to mention,cheet and kick sand in the eyes of the beloved American race teams . Well it did not work . The grand prize was when Tony Stewart bailed on Toyota and went back to the home team and is winning again . A little off topic here but it's funny now that Toyota did not turn the NASCAR world upside down , the sideline coaches are saying that they should not have got into racing .

theman440 - 7/22/2009 12:34:29 AM

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What in the world does being competitive in NASCAR have to do with this?
It's called marketing, NASCAR is not about racing anymore.

Anthony - 7/21/2009 6:02:45 PM

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Any and everyone can make calls for Toyota to build a specific car that they want. Regardless, Toyota is going to do whatever it sees fit to do. My guess is that they are going to firstly cut labor, like most auto companies are doing. After that they will probably stop the development and expansion of all their manufacturing plants. It wouldn't be wise by any means to put up a new facility to build new cars that people aren't buying. Third, they probably will not be releasing cars in new segments. They will stick to improving their core products. It would cost lots of money to develop a new MR2 or a new Supra. They quite possibly will go through with the new products that are already well into development, like the joint project with Subaru, but beyond that, I wouldn't expect much.

theman440 - 7/22/2009 12:29:29 AM

+1 Boost

OMG ! Toyota is losing money ? They must not be "building cars that people want" They must be "mis managed" Hey Obama, are you looking to aquire another automaker ? Those a-holes in Congress need to pull their heads out of their a***s!

lexworld - 7/22/2009 6:51:30 PM

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Mitchell, beauty is in the eye of the beholder. Yes, a camry is a beautiful looking car but you can also see it! That is of course, unless you are blind. "Who is this Shempy guy'! GM should build tanks with what money? Ford barely has enough dough to run their company let alone build tanks to blow up Toyota manufacturing plants.

lexworld - 7/22/2009 6:53:17 PM

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Anyway enough comedy already! I think it's a good thing to go back to the drawing board when you change company presidents.

lexworld - 7/22/2009 6:55:53 PM

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Agent00R, just don't turn out like Agent009...He's looking for a poor man's Lexus in hope of Hyundai pushing over Lexus literaly.

lexworld - 7/22/2009 7:07:44 PM

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Anthony, I kinda beg to differ with you on the idea that Toyota will do whatever it sees fit to do. Toyota lately is at the drawing board and that drawing board consist of urgent priorities. 1) Fuel sipping hybrids. 2) Fun factor. 3) Customer perception. 4) Customer feedback. 5) Return to glory days via smart technology. Pay real close attention to them as Mr. Akio Toyoda is now at the helm of this great warship.