Toyota on pace for $21 Billion profit

http://www.reuters.com/article/companyNewsAndPR/idUST2701920071023

TOKYO, Oct 23 (Reuters) - Toyota Motor Corp's (7203.T: Quote (http://www.reuters.com/stocks/quote?symbol=7203.T), Profile (http://www.reuters.com/stocks/companyProfile?symbol=7203.T), Research (http://www.reuters.com/stocks/researchReports?symbol=7203.T)) group operating profit is expected to have risen about 10 percent to more than 1.2 trillion yen ($10.5 billion) for the six months to September, the Nikkei business daily said on Tuesday, without citing sources.
Strong sales in emerging markets such as Asia and the Middle East as well as in Europe and the United States have helped Toyota book a record interim profit for a second consecutive year, the Nikkei said.
Toyota declined to comment on the news report, but its shares rose 1.3 percent in the morning session to 6,200 yen. That compared with a gain of 0.8 percent in the TOPIX index (.TOPX: Quote (http://www.reuters.com/stocks/quote?symbol=.TOPX), Profile (http://www.reuters.com/stocks/companyProfile?symbol=.TOPX), Research (http://www.reuters.com/stocks/researchReports?symbol=.TOPX)).
The reported figure is in line with the market consensus of 1.29 trillion yen, according to a poll of four analysts by Reuters Estimates.
While expanding its presence in developing markets, Toyota has also been cranking up market share in mature regions with fuel-efficient cars such as the Prius hybrid and RAV 4 crossover as well as entering the full-sized pickup truck segment with the Tundra model.
Its lean operations and savvy cost-cutting have also enabled Toyota to absorb a stubborn rise in commodity prices.
But Toyota appeared to have fared poorly in its home market. Sales in Japan are likely to have slipped from a year earlier, partly because of a major earthquake in July that forced Toyota to halt some production lines, the Nikkei said.
The company's operating profit margin for the April-June quarter rose above 10 percent, but the margin for the first half appears to have fallen to 9 to 10 percent due to the yen's appreciation and higher spending on research and development, the Nikkei said.
Toyota is due to report its second-quarter results on Nov. 7.

21 billion Profits, but by many accounts, worse quality and dependability. . . .

This figure makes the issues Toyota is having even harder to swallow. . . .They have the money (obviously), so why the recent issues?


. . . . .and savvy cost-cutting. . . .


Could these cost-cutting measures be too aggressive? Ringing every penny out of a design, with little/no safety factor for manufacturing variance. . . . . Could it be that these “cost-cutting measures” are the problem?

It just seems odd, record profits and a rise in quality/dependability issues. It seems history does repeat itself. . . .

As the old saying goes: "A fool and his money are soon parted". Same holds true for Corporations. Toyota had better not get greedy and better start spending that money on getting quality back up to par.

21 billion Profits, but by many accounts, worse quality and dependability. . . .

This figure makes the issues Toyota is having even harder to swallow. . . .They have the money (obviously), so why the recent issues?



Could these cost-cutting measures be too aggressive? Ringing every penny out of a design, with little/no safety factor for manufacturing variance. . . . . Could it be that these “cost-cutting measures” are the problem?

It just seems odd, record profits and a rise in quality/dependability issues. It seems history does repeat itself. . . .

If only Toyota could be like more like the Domestics, little money and little quality.

Fan

If only Toyota could be like more like the Domestics, little money and little quality.

Fan


Give'em a few years and they will be. By then the Domestics will have plenty of money AND good quality. Their headed that way already.

If only Toyota could be like more like the Domestics, little money and little quality.

Fan

I don't know what's more inexcusable:

Having little money, which results in little quality. . . . .

or. . . .

Having an abundance of money, and choosing to build little quality. . . . .

Toyota would be wise to get back to its roots and remember what it was that allowed them to become the dominant automotive force they are today. Bucket loads of profits with little quality is how the domestics got into the hole they are currently digging themselves out of. . . .

I don't know what's more inexcusable:

Having little money, which results in little quality. . . . .

or. . . .

Having an abundance of money, and choosing to build little quality. . . . .

Toyota would be wise to get back to its roots and remember what it was that allowed them to become the dominant automotive force they are today. Bucket loads of profits with little quality is how the domestics got into the hole they are currently digging themselves out of. . . .

Only a hatoraide drinker would accuse Toyota of having little quality.

If Toyota is building "little quality" then GM's vehicles are so low in quality, they are sucking the quality out of the people who drive them. Perhaps that is your excuse for the lack of quality in your post?

Making it into the top 10 were Toyota Motor Corp.'s Lexus, Scion and Toyota brands, and Toyota had 17 vehicles on Consumer Reports' list of the 39 most reliable models, far more than any other automaker.

Forty-one of 44 Ford, Lincoln and Mercury models -- or 93 percent -- scored average or better in predicted reliability, compared with 67 percent of Chrysler LLC's models and 49 percent of General Motors Corp.'s models.http://www.pittsburghlive.com/x/pittsburghtrib/business/s_533038.html

Fan

Only a hatoraide drinker would accuse Toyota of having little quality.



Or a Tundra owner who uses his bed/tailgate to haul something other than pillows. :D

Not to mention all of the other Quality Issues the Tundra is having.

One owners response from Toyota about his tailgate issue:

Thank you for contacting Toyota Motor Sales, U.S.A., Inc.

We apologize for your dissatisfaction with the tailgate on your 2007 Tundra.

We do not have a published weight rating for the tailgate. As such, we have not identified the tailgate as a weight bearing part.

Because it is not designed as a load bearing part, it is designed to be removable; we recommend you remove the tailgate for loading heavy items.

I think there is something we can agree on, Toyota currently has more defective products than in years past. I love Toyotas, and think they are great, I won't drive anything else right now. I try to drive the best car I can afford and that has in times past and is now a Toyota. However you have to be a fool to think the domestics are not improving or trying to improve in quality. This is a business for them, not a game.

I think there is something we can agree on, Toyota currently has more defective products than in years past. I love Toyotas, and think they are great, I won't drive anything else right now. I try to drive the best car I can afford and that has in times past and is now a Toyota. However you have to be a fool to think the domestics are not improving or trying to improve in quality. This is a business for them, not a game.
:thumbup: bingo.
let's just hope that profits = fixes.

Or a Tundra owner who uses his bed/tailgate to haul something other than pillows. :D

Not to mention all of the other Quality Issues the Tundra is having.

One owners response from Toyota about his tailgate issue:

Thank you for contacting Toyota Motor Sales, U.S.A., Inc.

We apologize for your dissatisfaction with the tailgate on your 2007 Tundra.

We do not have a published weight rating for the tailgate. As such, we have not identified the tailgate as a weight bearing part.

Because it is not designed as a load bearing part, it is designed to be removable; we recommend you remove the tailgate for loading heavy items.

Toyota as a whole still produces top quality vehicle when looking at data - JD Power and Consumer reports instead of headlines and message boards. And it would take decades of Toyota producing below industry average
quality(which they are currently not as a whole) to gain the perception the domestics will deal with for some time. All the fuss and hoopla over Toyota quality and GM as a whole in JD Power and Consumer Reports are still ranking below industry average in long term...

Judging by all petty jealousy, as evidenced by all the posts with a "told-you-so" attitude, Toyota must be doing something right. When jealous, a person will grab on any little bit of bad news...

I agree that Toyota quality may be slipping. I am not happy with the relatively poor quality of materials, poor assembly quality, poor supplier quality, etc. of my 2007 (acquired in March 2006) Kentucky-assembled Camry; I am on my third set of sun visors, and they are still not fixed. I was much more impressed with the quality of materials and better assembly quality of my 2002 Japan-assembled Camry.

I myself cannot say for sure that Toyota quality is slipping, because I have not driven a wide range of Toyota vehicles of different generations, assembled in various different locations, over a period of a few years. Has anyone on this forum driven all these different vehicles so that they can state -- unequivocally, and first-hand -- that quality has slipped, or are most people simply relying on second-hand information from sources that may or may not be biased?

Toyota would be wise to start working on quality issues (real or imagined) least their image and sales start to slip and effect those grandiose profits.

Or a Tundra owner who uses his bed/tailgate to haul something other than pillows. :D

Not to mention all of the other Quality Issues the Tundra is having.

One owners response from Toyota about his tailgate issue:

Thank you for contacting Toyota Motor Sales, U.S.A., Inc.

We apologize for your dissatisfaction with the tailgate on your 2007 Tundra.

We do not have a published weight rating for the tailgate. As such, we have not identified the tailgate as a weight bearing part.

Because it is not designed as a load bearing part, it is designed to be removable; we recommend you remove the tailgate for loading heavy items.

Let's see:

Recalls on the 2006 sierra (so far):
Recall ID# 07E066000 - EQUIPMENT:ELECTRICAL (http://www.automotive.com/2006/49/gmc/sierra/recalls/22814.html)
Recall Date: AUG 28, 2007 Component: EQUIPMENT:ELECTRICAL Model Affected: SIERRA Units Affected: 175 Recall Details (http://www.automotive.com/2006/49/gmc/sierra/recalls/22814.html)
Recall ID# 06V307000 - WHEELS:RIM (http://www.automotive.com/2006/49/gmc/sierra/recalls/49878.html)
Recall Date: AUG 11, 2006 Component: WHEELS:RIM Model Affected: SIERRA Units Affected: 3227 Recall Details (http://www.automotive.com/2006/49/gmc/sierra/recalls/49878.html)
Recall ID# 06V289000 - ENGINE AND ENGINE COOLING (http://www.automotive.com/2006/49/gmc/sierra/recalls/49707.html)
Recall Date: AUG 03, 2006 Component: ENGINE AND ENGINE COOLING Model Affected: SIERRA Units Affected: 38439 Recall Details (http://www.automotive.com/2006/49/gmc/sierra/recalls/49707.html)
Recall ID# 05V552000 - EQUIPMENT:OTHER:LABELS (http://www.automotive.com/2006/49/gmc/sierra/recalls/66296.html)
Recall Date: DEC 07, 2005 Component: EQUIPMENT:OTHER:LABELS Model Affected: SIERRA Units Affected: 32068 Recall Details (http://www.automotive.com/2006/49/gmc/sierra/recalls/66296.html)
Recall ID# 05V455000 - STEERING:HYDRAULIC POWER ASSIST:HOSE, PIPING, AND CONNECTIONS (http://www.automotive.com/2006/49/gmc/sierra/recalls/22191.html)
Recall Date: OCT 05, 2005 Component: STEERING:HYDRAULIC POWER ASSIST:HOSE, PIPING, AND CONNECTIONS Model Affected: SIERRA Units Affected: 123592 Recall Details (http://www.automotive.com/2006/49/gmc/sierra/recalls/22191.html)

No recalls on the 2007 yet, but its just a matter of time with GM isn't it.

How's the Tranny holding out in your new truck? I'm hearing there is a major concern with the new Silverado/Sierra. Here's some chatter about it. I know GM is aware of it at the corporate level.

http://townhall-talk.edmunds.com/direct/view/.f0ab322

My truck is the new body 07. 6.0 vortec max 1500 (HD tranny tow package) (4x4 not Z71, just 4x4) A/T tranny, 20" factory street wheels, LTZ 4door, w/all the bells. The tranny always had a slight fluid pump type noise(only slight) and started screwing up and went out over a weekend. It seemed to free wheel and the tranny temp was much higher than normal.

I have the 2007 1500 6.0 vortex max.
bought the truck july 5th was great for 3 or 4 weeks then
it started bucking or jerking going up grade, sometime at a stop light it would feel like someone hit me from the rear.
dealer says they can't find anything wrong.
also mpg dropped from 20 mpg to 16 mpg.
did your drop before your fix? and did your warrenty cover the fix?42 of 171 Brand new '07 Silverado w/ transmission leak by hardwaregirl (http://javascript%3Cb%3E%3C/b%3E:popWindow%28%27/WebX?viewUserProfile@@.f0ab322/141%21vuserName=hardwaregirl%27%29;) Sep 19, 2007 (4:44 pm) Reply (https://secure.edmunds.com/apps/dcm/LoginForm.do?ApplicationType=Townhall&OriginalUrl=http%3A%2F%2Ftownhall-talk.edmunds.com%2FWebX%3F229%40%40.f0ab322%2F141&tid=edmunds.t.townhall.reply..1.*)
My husband and I just bought a brand new '07 silverado yesterday. He got it home and within an hour noticed that it was leaking trans fluid out of the bell housing. Of course, he was very upset. I took it back to the dealership today, and they say it is a faulty trans pump seal. Anyone have this problem? We are freaked about this truck, and our confidence is shaken. Comtemplating giving it back to them and walking away.
Fan

Let's see:

Recalls on the 2006 sierra (so far):
Recall ID# 07E066000 - EQUIPMENT:ELECTRICAL (http://www.automotive.com/2006/49/gmc/sierra/recalls/22814.html)
Recall Date: AUG 28, 2007 Component: EQUIPMENT:ELECTRICAL Model Affected: SIERRA Units Affected: 175 Recall Details (http://www.automotive.com/2006/49/gmc/sierra/recalls/22814.html)

175 possibly effected, and the lights may not work on a trailer if you are effected. Change out he 7-way switch, your good to go. . . .


Recall ID# 06V307000 - WHEELS:RIM (http://www.automotive.com/2006/49/gmc/sierra/recalls/49878.html)
Recall Date: AUG 11, 2006 Component: WHEELS:RIM Model Affected: SIERRA Units Affected: 3227 Recall Details (http://www.automotive.com/2006/49/gmc/sierra/recalls/49878.html)

“THESE VEHICLES HAVE AN INCOMPLETE TIRE RIM DESIGNATION ON THE CERTIFICATION/TIRE LABEL LOCATED ON THE DRIVER'S DOOR EDGE. ALTHOUGH THIS INFORMATION IS NOT REQUIRED BY THE STANDARD, IF A TIRE OF A LESSER LOAD RATING IS INSTALLED, THE TIRE MAY NOT BE ABLE TO SUSTAIN THE LOADS ENCOUNTERED DURING USE.”

WOW, good find. . . .

Recall ID# 06V289000 - ENGINE AND ENGINE COOLING (http://www.automotive.com/2006/49/gmc/sierra/recalls/49707.html)
Recall Date: AUG 03, 2006 Component: ENGINE AND ENGINE COOLING Model Affected: SIERRA Units Affected: 38439 Recall Details (http://www.automotive.com/2006/49/gmc/sierra/recalls/49707.html)

GM no longer sells the 8.1 liter in the Sierra. . . .

Recall ID# 05V552000 - EQUIPMENT:OTHER:LABELS (http://www.automotive.com/2006/49/gmc/sierra/recalls/66296.html)
Recall Date: DEC 07, 2005 Component: EQUIPMENT:OTHER:LABELS Model Affected: SIERRA Units Affected: 32068 Recall Details (http://www.automotive.com/2006/49/gmc/sierra/recalls/66296.html)

THESE VEHICLES WERE SHIPPED WITH TIRE AND LOADING INFORMATION LABELS LISTING AN INACCCURATE VEHICLE CAPACITY WEIGHT.


Recall ID# 05V455000 - STEERING:HYDRAULIC POWER ASSIST:HOSE, PIPING, AND CONNECTIONS (http://www.automotive.com/2006/49/gmc/sierra/recalls/22191.html)
Recall Date: OCT 05, 2005 Component: STEERING:HYDRAULIC POWER ASSIST:HOSE, PIPING, AND CONNECTIONS Model Affected: SIERRA Units Affected: 123592 Recall Details (http://www.automotive.com/2006/49/gmc/sierra/recalls/22191.html)

The only noteworthy one of the bunch. This is on 3+ year old vehicles, but whatever proves your point about CURRENT quality. . . .

No recalls on the 2007 yet, but its just a matter of time with GM isn't it.

Your opinion. . . . .Considering the Tundra is “younger” than the Sierra, you would expect the Sierra to have more issues (more time for them to arise). As it is, we currently know the Tundra has had 30+ motors replaced due to engine failure, a common Transmission issue/failure that requires replacement (of the torque converter as of now), and a tailgate that is not rated/designed to be a load bearing surface. . . .ON A TRUCK!!!!

How's the Tranny holding out in your new truck? I'm hearing there is a major concern with the new Silverado/Sierra. Here's some chatter about it. I know GM is aware of it at the corporate level.

http://townhall-talk.edmunds.com/direct/view/.f0ab322 (http://townhall-talk.edmunds.com/direct/view/.f0ab322)

This is the first time I have heard about issues with the 6l80E transmission, or the 4l65E, or the 4l80E. Do you have a link to the “Corporate Level” claim, I’m curious to see what GM has to say about it. . . .



Fan

WOW fanfan, you’re grasping at straws there. . . . I think I’d take a sticker misprint, or steering hose failure to a blown transmission, or tinfoil tailgate.

To borrow a common phrase by fanfan’s, “At least they’re stepping up and fixing the problems. . . .”

Fanfan,

Do you REALLY want to compare tranny issues between the GMT900's and the Tundra? Better yet, do you really want to compare ANY issues between the 2?

WOW fanfan, you’re grasping at straws there. . . . I think I’d take a sticker misprint, or steering hose failure to a blown transmission, or tinfoil tailgate.

To borrow a common phrase by fanfan’s, “At least they’re stepping up and fixing the problems. . . .”


Ah i get it.

Some posts online about tail gates and Toyota's quality is slipping.

Some post online about Silverado's tranny problems and it's "tinfoil'

You are so transparent.

Your GM vehicle/job is really sucking the quality out of you. It's like a quality black hole when you post.

Fan

Fanfan,

Do you REALLY want to compare tranny issues between the GMT900's and the Tundra? Better yet, do you really want to compare ANY issues between the 2?

I'll compare 29 camshaft failures on 200000 units to any GM product any time.

i know why engineer posts here, why do you post here? To feel better about buying your truck?

Fan

I'll compare 29 camshaft failures on 200000 units to any GM product any time.

i know why engineer posts here, why do you post here? To feel better about buying your truck?

Fan


Who said anything about camshaft failures? I agree that is a resolved issue, however, nobody really knows how many more are still out there that have not failed yet.

I was referring to major tranny issues, tailgate issues, interior quality issues (painted dash, air vent, rattles and sqeaks, etc), exterior paint quality, sheet metal quality, bed floors denting from atv wheels, battery issues, and several others that are discussed regularly by owners at TS.

I don't post here much anymore, just when I see a topic that I have info on and can contribute to, even if it doesn't meet your approval. Why do you have a problem with it? I don't need to feel better about my truck, it is simply awesome and I can even jump up and down on my tailgate without it bending and/or ripping apart.

Ah i get it.

Some posts online about tail gates and Toyota's quality is slipping.

Some post online about Silverado's tranny problems and it's "tinfoil'

You are so transparent.

Your GM vehicle/job is really sucking the quality out of you. It's like a quality black hole when you post.

Fan

So you don't agree the tailgate issue is real and it's not a quality issue?

How did you connect the Silvy's tranny issues to his reference to Tundra's "tinfoil" tailgate???

I own an 07 Tundra with the 5.7, the drivetrain is absolutely the best I have ever driven or owned (I have no tranny problems), I like the interior and how it is laid out....but Toyota should be ashamed of themselves with that tailgate it is an absolute piece of garbage. Glued together? They should recall the damn thing and replace them all, NOW. I dont feel safe putting one foot in the bed and one on the tailgate when its down, its that flimsy. I have to take the tailgate off to load my snowblower this winter? My last Tacoma had a better tailgate.

I don't know what's more inexcusable:

Having little money, which results in little quality. . . . .

or. . . .

Having an abundance of money, and choosing to build little quality. . . . .

Toyota would be wise to get back to its roots and remember what it was that allowed them to become the dominant automotive force they are today. Bucket loads of profits with little quality is how the domestics got into the hole they are currently digging themselves out of. . . .

I agree.

I believe that Toyota will turn things around. They really need to get back to their Japaneze roots and not let the American work ethic and business practices contaminate their way of doing business. It is hard to balance everything though, many things that applied in the past, no longer apply today.

Hopefully for us and themselves they will get everything worked out. Hopefully...

Whats better, most shareholders happy with the profits or a few customers dissapointed with their vehicles? :ugh3:.....Time will tell.

Whats better, most shareholders happy with the profits or a few customers dissapointed with their vehicles? :ugh3:.....Time will tell.

$100 GUY, you just hit us with 100 pounds of truth. . . .

I never thought of it that way, but shareholders pocket books may/do take priority over customer complaints. . . . . . It's a fact, Toyota is in this to make money, and they are posting record profits quarter over quarter. I think the share holders are quite happy, despite the drop in quality. Toyota could ride this "perceived quality" wave for another 10 years before the general public would take notice. Profits would still be high, so why fix the issues?

$100 GUY, you just hit us with 100 pounds of truth. . . .

I never thought of it that way, but shareholders pocket books may/do take priority over customer complaints. . . . . . It's a fact, Toyota is in this to make money, and they are posting record profits quarter over quarter. I think the share holders are quite happy, despite the drop in quality. Toyota could ride this "perceived quality" wave for another 10 years before the general public would take notice. Profits would still be high, so why fix the issues?
In my opinion, Profits are better than customer satisfaction...:smokin:

Once upon a time ago, Toyota used to consider customer satisfaction > profits. Until they grew to become a huge giant and got addicted to loads of cash, they decided lets multiply the profits by 10 and cut down quality on parts and fire some of the quality control guys.

Toyota could ride this "perceived quality" wave for another 10 years before the general public would take notice. Profits would still be high, so why fix the issues?


Mostly because Toyota isn't that shortsighted or shallow when it comes to corporate values.

Mostly because Toyota isn't that shortsighted or shallow when it comes to corporate values.
and I'd still rather let Toyota earn my business instead of spending money on some Generic Morbid Crap.

I don't know what's more inexcusable:

Having little money, which results in little quality. . . . .

or. . . .

Having an abundance of money, and choosing to build little quality. . . . .

Toyota would be wise to get back to its roots and remember what it was that allowed them to become the dominant automotive force they are today. Bucket loads of profits with little quality is how the domestics got into the hole they are currently digging themselves out of. . . .

Realistically they had a plan a few yrs back to shorten the design cycle to keep the new products flowing faster and faster. It probably resulted in shortcuts throughout the system. We are seeing the results now.

Last year they stopped and said that they were going back to a more traditional 5 or even 6 yr cycle and doing more verification. In addition the one single area that they have a shsortage in is engineering depth. Growth has been too fast frankly. Getting the Isuzu investment gave them access to an additional 1000 engineers.

Another 'ticklish' area of shortage is in the US market. It was said that they had a goal of 60% of sales being produced in NA. Sales in NA were growing faster than they could find and build plants. I think that they've pulled back from this goal as well. As an example at 2 million units annually and a 15% growth rate that means that they were adding 300,000 units in sales and by their goal they had to add 180,000 units of production here every year, year after year. This year they added Tx and the 100,000 Camry units at the new Subaru plant from GM. Next year they will add about 200,000 units of RAVs in Ontario and following that 200,000 Highlander units in Tupelo.

There's bound to be growing pains to be sure.

Now I see a new trend. They are far less agressive on pricing it appears. Raise the prices ...slow the growth. The new Highlander is a lot higher than before, ditto the hybrid version. The new Land Cruiser starts at $71000 and ends at $72500!!!! Tacomas used to be $22000 trucks. Now thy're $28000 trucks. We might see a $23000 Corolla in the spring!!! The only ones going in the other direction are the hybrid Camry and the Prius where the prices are going down. Lower the price...raise the growth.