First time in 71 years. After downgrading profits by 30% Toyota now expects to go in the red. Toyota predicts first ever loss as sales drop - Dec. 22, 2008 My hope is this won't cripple introduction of their PHEV's & other products that Toyota has likely been keeping under wraps.
It will cripple everything, the free-fall in sales is getting worse instead of better. Toyota is internally very worried about the US market and where their market share may end up. Way too many variables in the market and they are getting cold feet.
It was inevitable. Look at all the cars available out there both new and used! I just bought Prius. (Or rather my wife bought it for us.) My previous (new) vehicle, my ONLY new vehicle prior to the Prius is a 1996 Dodge Ram Indy Pace Truck. Still have it too, still in great shape, and put away for the winter. Most likely another 10 years or longer before I will be interested in anything new again. Most of my life I bought used...............and plenty of them too. Now people simply cannot afford new cars..........there is a glut in the market, and Yes, even toyota is not immune. But they are a lot better off than others....................
It's inevitable too, when most of the 'new' cars-buying market is driven by Credit. Like you said, today's cars/trucks are in such high-quality that they can easily outrun for a decade or more. Toyota should have been bankrupted long while ago if everyone is buying its products and just hang until the wheels falloff. It's the cheap financing and leasing (so people can trade-cars and own-cars more than they do need) and fleet-vehicles keep the car markers in business. Once this credit flow has frozen, it's not surprising everyone in the car business is and will be suffering.
These kinds of problems are not just peculiar to the carmakers. We're going to see many dealers go under over the next several months. Take a look at the number of vacant stores in malls and downtown areas. We all have to hope that the new team in Washington is up to the task of putting things back on an even keel.
