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post #1 of 27 Old 02-14-2017, 12:55 AM Thread Starter
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Toyota frets as North American profits plunge


http://www.autonews.com/article/2017...302139997/1128
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Slowing demand, shift to trucks, Trump take toll

TOKYO -- Toyota Motor Corp.'s reliable cash cow, the North American market, is suddenly a swirl of uncertainties.

Operating profit in the region plummeted 53 percent in the latest quarter, helping trigger a double-digit plunge in Toyota corporate earnings.

Foreign exchange rate losses bit the hardest. But slowing market demand, the market shift toward light trucks and a rush of vehicles coming off lease are combining with uncertainty about Trump administration trade policy to cloud Toyota's outlook.

In announcing earnings for the company's fiscal third quarter ended Dec. 31, Managing Officer Tetsuya Otake warned last week that U.S. incentives are rising and residuals are falling.

"Competition has intensified in the market. Incentives in the market trended upward," Otake said, adding that Toyota expects the overall U.S. market to decline about 2 percent in calendar year 2017 after a record finish in 2016. "We expect a tough used-car market going forward."

North American regional operating profit dropped by more than half to 70.6 billion ($604.9 million) in the quarter. Sales in Toyota's biggest market rose 2.3 percent to 745,000 vehicles. The results were hurt by foreign exchange losses and outlays for declining residuals.

Otake conceded the company was slow to react as U.S. consumers stampeded away from cars toward light trucks as gasoline prices dropped and tastes changed.

Hot-selling light trucks accounted for just 53.2 percent of Toyota Motor Sales U.S.A.'s volume last year. But trucks gobbled 60.7 percent of U.S. sales industrywide. Toyota Motor Sales' car volume fell 12 percent for the year, while its truck sales gained 8.8 percent.

Otake said increased capacity for pickups, crossovers and SUVs should bolster sales going ahead. Toyota also will get a boost in the coming year from the arrival of the C-HR subcompact crossover, which targets a sweet spot in U.S. demand, and from a redesigned Camry sedan, he said.

Toyota lifted its North America wholesale outlook for the current fiscal year by 20,000 units to 2.84 million vehicles. But the new target is essentially flat with the 2.839 million Toyotas sold in North America the previous fiscal year. Toyota Motor Sales started the new year on a weak foot, with U.S. volume falling 11 percent to 143,048 vehicles in January.

At the parent-company level, Toyota reported a 39 percent tumble in operating profit in the fiscal third quarter as huge foreign exchange losses and higher expenses offset higher sales.

Operating profit plunged to $3.76 billion, while net income dropped 23 percent to $4.17 billion in the October-December period.

Worldwide revenue declined 3.5 percent to $60.7 billion in the quarter, even as global retail sales advanced 2.9 percent to 2.28 million vehicles.
Doing just fine, they said...
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post #2 of 27 Old 02-14-2017, 01:14 AM
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$4.17 billion in net income the company is basically standing in the soup line.

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post #3 of 27 Old 02-14-2017, 11:39 AM Thread Starter
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$4.17 billion in net income the company is basically standing in the soup line.
Well they've been spoiled, at least according to their bean counters
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post #4 of 27 Old 02-14-2017, 12:12 PM
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They'll be fine.
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post #5 of 27 Old 02-14-2017, 12:50 PM Thread Starter
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They'll be fine.
Just a billion less, no big deal
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post #6 of 27 Old 02-14-2017, 08:42 PM
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Just a billion less, no big deal



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post #7 of 27 Old 02-15-2017, 08:13 PM
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I think it's because people don't wanna to buy new toyotas when there's so many older reliable ones.. 3-5 year old toyota is basically still new.

In 2011 my mom bought a brand new matrix for like $24kCDN all said and done, it's worth like $10k by now. worst purchase in her life

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post #8 of 27 Old 02-15-2017, 08:52 PM
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Toyota had to pay for the office complex in TX, and probably booked in advance the relocation $$$. It sure isn't because they spent a penny redesigning the ugly faces of Lexus and Toyota vehicles.
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post #9 of 27 Old 02-15-2017, 09:02 PM
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toyota has no worries, not going anywhere

The Fortune 500 2016 - Top 10
Walmart - annual revenue: $482bn. The US retail giant owns Asda in the UK. ...
State Grid - $330bn. ...
China National Petroleum - $299bn. ...
Sinopec Group - $294bn. ...
Royal Dutch Shell - $272bn. ...
Exxon Mobil - $246bn. ...
Volkswagen - $237bn. ...
Toyota - $237bn.
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post #10 of 27 Old 02-16-2017, 12:07 AM Thread Starter
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Quote:
Originally Posted by z27ls3 View Post
The Fortune 500 2016 - Top 10
Walmart - annual revenue: $482bn. The US retail giant owns Asda in the UK. ...
State Grid - $330bn. ...
China National Petroleum - $299bn. ...
Sinopec Group - $294bn. ...
Royal Dutch Shell - $272bn. ...
Exxon Mobil - $246bn. ...
Volkswagen - $237bn. ...
Toyota - $237bn.
More items...
Yes, they're still fine as zythr always like to say (as oppose to being near bankrupt or taken over), but if you're a bean counter you certainly weren't liking the last fiscal year's results, and neither the exchange rate that either hurts or helps a company's earnings. Obviously, to your average uninterested Toyota owner who's on their 10th one, this doesn't mean much.
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post #11 of 27 Old 02-16-2017, 07:50 AM
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z27ls3 is a Zythr clone. They're everywhere!! Taking over!! ha!


I was going to say the exchange rate is not favoring Toyota or the other Japanese makes at this point.

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post #12 of 27 Old 02-16-2017, 04:27 PM
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Originally Posted by ECHOKnight2000 View Post
z27ls3 is a Zythr clone. They're everywhere!! Taking over!! ha!


I was going to say the exchange rate is not favoring Toyota or the other Japanese makes at this point.


Good. Toyota is firmly entrenched in the US in more ways than one. They're hear for the long haul.
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post #13 of 27 Old 02-16-2017, 04:29 PM
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Originally Posted by got-rice View Post
Yes, they're still fine as zythr always like to say (as oppose to being near bankrupt or taken over), but if you're a bean counter you certainly weren't liking the last fiscal year's results, and neither the exchange rate that either hurts or helps a company's earnings. Obviously, to your average uninterested Toyota owner who's on their 10th one, this doesn't mean much.
You're so right with your last sentence, Javi would agree
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post #14 of 27 Old 02-16-2017, 05:59 PM Thread Starter
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Originally Posted by zythr View Post
You're so right with your last sentence, Javi would agree
no idea who he is...
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post #15 of 27 Old 02-16-2017, 09:45 PM
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Originally Posted by got-rice View Post
no idea who he is...


He's a dad on the show MTV show Teen Mom 2. He was married to the mother of his child, Kaylin and is in the military. He was deployed for a few months. Upon his return his marriage to Kaylin is on the rocks.

He said he wanted to treat himself so he bought a new Pickup, a Tacoma. When he is taking Kaylin out in his new truck, she makes the comment "she would not get a Toyota' or something to that affect. He replies he "loves" like Toyota and wanted to buy a Toyota truck.

It was funny MTV made sure to keep the mention of Toyota in the episode. I don't recall them doing that for any other car brand, though there was the running joke of another Teen Mom's Saturn breaking down at the wrong time (she has upgraded her wheels)

It is a recently shown episode, (last 2 weeks),if you have cable and want to watch, which they will repeat, often
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