Posts Tagged ‘Largest Automaker’
Toyota to Slash 2009 Sales Outlook, Cut Costs
Money Morning asked:
Toyota Motor Corp. (ADR:TM) may not need a government bailout, but it’s hurting badly.
The world’s top automaker said it will announce a revised 2009 sales forecast at its end-of-the-year news conference Dec. 22. The company is expected to slash at least 1 million cars from its original forecast of 9.7 million units, Reuters reported.
It’s also expected to outline cost cutting measures that could include laying off employees, suspending plant operations, delaying the opening of new plants, and cutting the budget for research and development.
According to several Japanese media outlets, Toyota plans to eliminate bonuses for its executives and is expected to post a second-half loss.
One analyst believes the company’s dividend also could be on the chopping block.
“We anticipate that even Toyota could see its post-dividend cash flow turn negative should it keep its dividends at 140 yen,” Morgan Stanley (MS) analyst Noriaki Hirakata wrote in a report. “Thus, in this perfect storm, we expect the firm to cut its dividend to 100 yen per share for this business year.”
That’s a gigantic step backwards from last year, when Toyota took the crown from General Motors Corp. (GM) as world’s largest automaker by selling 9.37 million cars worldwide.
But like all automakers – and nearly every major industry – Toyota has been crippled by a worldwide dearth in demand, brought on by a whirlwind of job losses, devalued property, lack of credit and falling stock markets.
From January to October this year, Toyota sold 7.74 million vehicles. And during its fiscal first half – six months ended September 30 – net revenues fell 6.3% compared to the same period last year.
Year-to-date, Toyota’s New York-listed ADR shares have fallen about 38%, still much better than GM and Ford Motor Co.’s (F) respective stock declines of 83% and 53%. But recently, Toyota’s ADR shares have been moving forward in hopes that the U.S. government will bailout Detroit’s Big Three – GM, Ford and Chrysler LLC – because that would shore up the auto industry’s underpinnings: Dealerships and parts and supply manufacturers.
The United States is also the largest market for most foreign automakers. Allowing one or all of the Big Three to go under would add millions to the running unemployment numbers and deepen the recession, making the U.S. market less likely to buy their cars.
News and Related Story Links:
Reuters:
Toyota to cut sales goal and outline cost cuts
Money Morning:
Auto Bailout Awaits Congressional Approval with Millions of Jobs at Stake
ShareThis
More on this topic (What’s this?)
Are US automakers doomed? (Intelligent Speculator, 12/15/08)
European Automakers Dispute Assumptions of ‘Let GM/Chrysler Go Bankrupt” Case (naked capitalism, 12/15/08)
Unsold Goods Piling Up at Long Beach (naked capitalism, 11/18/08)
Vote on Auto Bailout Sure to Spark Debate (The Razor’s Edge, 12/10/08)
Read more on Toyota Motor, Auto Makers at Wikinvest
IMF Quietly Creating Three 100%+ Winners
The International Monetary Fund is about to pump $100 billion into a few select countries. This “no strings attached” bailout is creating three 100%+ gainers in the coming days – if you know how to play it. Get all the details in this report: The Trigger Event Strategy: The Only Proven Way to Make Money in an Insane Market. Just go here…
Investing News
Caffeinated Content
Toyota Motor Corp. (ADR:TM) may not need a government bailout, but it’s hurting badly.
The world’s top automaker said it will announce a revised 2009 sales forecast at its end-of-the-year news conference Dec. 22. The company is expected to slash at least 1 million cars from its original forecast of 9.7 million units, Reuters reported.
It’s also expected to outline cost cutting measures that could include laying off employees, suspending plant operations, delaying the opening of new plants, and cutting the budget for research and development.
According to several Japanese media outlets, Toyota plans to eliminate bonuses for its executives and is expected to post a second-half loss.
One analyst believes the company’s dividend also could be on the chopping block.
“We anticipate that even Toyota could see its post-dividend cash flow turn negative should it keep its dividends at 140 yen,” Morgan Stanley (MS) analyst Noriaki Hirakata wrote in a report. “Thus, in this perfect storm, we expect the firm to cut its dividend to 100 yen per share for this business year.”
That’s a gigantic step backwards from last year, when Toyota took the crown from General Motors Corp. (GM) as world’s largest automaker by selling 9.37 million cars worldwide.
But like all automakers – and nearly every major industry – Toyota has been crippled by a worldwide dearth in demand, brought on by a whirlwind of job losses, devalued property, lack of credit and falling stock markets.
From January to October this year, Toyota sold 7.74 million vehicles. And during its fiscal first half – six months ended September 30 – net revenues fell 6.3% compared to the same period last year.
Year-to-date, Toyota’s New York-listed ADR shares have fallen about 38%, still much better than GM and Ford Motor Co.’s (F) respective stock declines of 83% and 53%. But recently, Toyota’s ADR shares have been moving forward in hopes that the U.S. government will bailout Detroit’s Big Three – GM, Ford and Chrysler LLC – because that would shore up the auto industry’s underpinnings: Dealerships and parts and supply manufacturers.
The United States is also the largest market for most foreign automakers. Allowing one or all of the Big Three to go under would add millions to the running unemployment numbers and deepen the recession, making the U.S. market less likely to buy their cars.
News and Related Story Links:
Reuters:
Toyota to cut sales goal and outline cost cuts
Money Morning:
Auto Bailout Awaits Congressional Approval with Millions of Jobs at Stake
ShareThis
More on this topic (What’s this?)
Are US automakers doomed? (Intelligent Speculator, 12/15/08)
European Automakers Dispute Assumptions of ‘Let GM/Chrysler Go Bankrupt” Case (naked capitalism, 12/15/08)
Unsold Goods Piling Up at Long Beach (naked capitalism, 11/18/08)
Vote on Auto Bailout Sure to Spark Debate (The Razor’s Edge, 12/10/08)
Read more on Toyota Motor, Auto Makers at Wikinvest
IMF Quietly Creating Three 100%+ Winners
The International Monetary Fund is about to pump $100 billion into a few select countries. This “no strings attached” bailout is creating three 100%+ gainers in the coming days – if you know how to play it. Get all the details in this report: The Trigger Event Strategy: The Only Proven Way to Make Money in an Insane Market. Just go here…
Investing News
Caffeinated Content
What Transpires Behind the Toyota Story?
Kaye Leery asked:
Toyota Motor has obtained great public relations last week since three of Korea’s major dallies namely the Chosun IIbo, the Dong-A IIbo, and the JoongAng IIbo has released headline stories about the Japanese automaker’s Lexus plant in Japan. But Media Onul or Media Today which is a KBS TV show that examines issues in the media, has refuted the stories saying that it’s being too similar.
As a matter of fact, a headline story like that carried in a major newspaper is much more efficient in reaching consumers as compared to dozens of ads amounting to millions of won each. Last June 8, the current largest automaker in the world and producer of top-of-the-line Toyota coil springs, Toyota Motors has invited 53 journalists from 44 Japanese and foreign companies for a publicity event for its Lexus . All the journalists were based in Tokyo. They were requested to gather near the exit of Toyohashi Station in Aichi Prefecture where the plant is located. The one-way trip took an hour and 24 minutes from Tokyo by bullet train and the round trip fare was 17,000 yen or W127,000.
The journalists themselves shouldered the fare, Toyota for its part provided a bus from the station to the plant, the bus trip took about 30 minutes for which Toyota paid for the fuel.
At the bus were boxes on each seat containing a sandwich, fruit, and a bottle of mineral water. It was a lunch box from Toyota, the very same kind you get from convenience store for about 500 yen or W3,700. And if its lunch box cost about 600 yen or W4,500 including the mineral water, Toyota must have spent about 31,800 yen or W238,500 for the lunch of the reporters.
At the press conference was a table laden with Lexus caps. Each of these caps cost approximately 2,000 yen or W17,000 and if ever each of the journalists took a cap it would cost Toyota 106,000 yen or W795,000. Totaling all the expenses of Toyota for the said publicity event it will reach W1 million to bring the journalists out to it plant and that doesn’t include yet the additional amount paid by the automaker to present its car and its own employees. But of course, the journalists could have shouldered those expenses but Toyota preferred to take the responsibility of paying for the whole expenses.
And in fairness to Toyota’s officials they didn’t forced any journalists to write stories in favor of the automaker. The Korean journalists were not also seated together and didn’t compare notes just to ensure that their stories would become headliners as assumed by President Roh Moo-hyun.
After the visit at Toyota’s plant the three Korean dallies presented their stories on the same day in a similar way maybe for the same reason. That very same day the union of Hyundai Motor which is always playing catch up with Toyota in the global market went rallying to oppose the Korea-US free trade agreement.
The Media Onul reported that the “conservative media companies” shares the same view which just makes the KBS TV accurately right.
Caffeinated Content
Toyota Motor has obtained great public relations last week since three of Korea’s major dallies namely the Chosun IIbo, the Dong-A IIbo, and the JoongAng IIbo has released headline stories about the Japanese automaker’s Lexus plant in Japan. But Media Onul or Media Today which is a KBS TV show that examines issues in the media, has refuted the stories saying that it’s being too similar.
As a matter of fact, a headline story like that carried in a major newspaper is much more efficient in reaching consumers as compared to dozens of ads amounting to millions of won each. Last June 8, the current largest automaker in the world and producer of top-of-the-line Toyota coil springs, Toyota Motors has invited 53 journalists from 44 Japanese and foreign companies for a publicity event for its Lexus . All the journalists were based in Tokyo. They were requested to gather near the exit of Toyohashi Station in Aichi Prefecture where the plant is located. The one-way trip took an hour and 24 minutes from Tokyo by bullet train and the round trip fare was 17,000 yen or W127,000.
The journalists themselves shouldered the fare, Toyota for its part provided a bus from the station to the plant, the bus trip took about 30 minutes for which Toyota paid for the fuel.
At the bus were boxes on each seat containing a sandwich, fruit, and a bottle of mineral water. It was a lunch box from Toyota, the very same kind you get from convenience store for about 500 yen or W3,700. And if its lunch box cost about 600 yen or W4,500 including the mineral water, Toyota must have spent about 31,800 yen or W238,500 for the lunch of the reporters.
At the press conference was a table laden with Lexus caps. Each of these caps cost approximately 2,000 yen or W17,000 and if ever each of the journalists took a cap it would cost Toyota 106,000 yen or W795,000. Totaling all the expenses of Toyota for the said publicity event it will reach W1 million to bring the journalists out to it plant and that doesn’t include yet the additional amount paid by the automaker to present its car and its own employees. But of course, the journalists could have shouldered those expenses but Toyota preferred to take the responsibility of paying for the whole expenses.
And in fairness to Toyota’s officials they didn’t forced any journalists to write stories in favor of the automaker. The Korean journalists were not also seated together and didn’t compare notes just to ensure that their stories would become headliners as assumed by President Roh Moo-hyun.
After the visit at Toyota’s plant the three Korean dallies presented their stories on the same day in a similar way maybe for the same reason. That very same day the union of Hyundai Motor which is always playing catch up with Toyota in the global market went rallying to oppose the Korea-US free trade agreement.
The Media Onul reported that the “conservative media companies” shares the same view which just makes the KBS TV accurately right.
Caffeinated Content