Toyota's Suicide Squeeze

Hypocrisy from Toyota? Say it isn't so Tom Freidman! That article just cost Toyota millions. I will tell you today if you own toyota stock to sell, sell sell. You will thank me a year from now.

Honestly Toyota is hitting a wall, reasons for my optimism:

-The departure of a very effective American leader, Jim Press.

-The media slowly starting to turn against Toyota. "How can the "green" company build so many trucks and SUV's that get really crappy mileage?"

-Every automaker going after the perceived leader.

-The Tundra which is slowly turning into a debacle.( I predicted it late last fall)

-Toyota's sales have fallen in I think 4 of the last 6 months year over year and everything is momentum.

-China, the trade situation with China is out of control and will be addressed. The situation with Japan will finally be really noticed.

-Hybrids. Toyota has gained incredible momentum over the last 3-4 years form their leadership in hybrids. The shine is beginning to wear off as there is only one hybrid that is selling at all and you all are driving it.

-The natural state. If you make enough decisions eventually you make some wrong decisions, especially when all you hear is praise, on product and Toyota obviously has, Tundra, FJ cruiser to name two.

Remember, 28 years ago the US congress was holding hearings about breaking up GM like ATT because they were up over 50 % of the market and there was no end in sight to GM's momentum.

Not in any particular order.

 

<div class='quotetop'>QUOTE(Prianista @ Oct 3 2007, 02:14 PM) [snapback]520718[/snapback]</div>

Nothing new about that. The problem for Detroit, though, is that most of their cars get 20mpg to maybe 30 if you're lucky and that's what stops a lot of people these days from considering their cars. Toyota turns out some gas guzzlers and some of their vehicles (the RAV4 for example) get bigger every year. Even the Corolla isn't exactly compact any longer. However, they have cars that get exceptional mileage (Prius, Camry hybrid, Yaris) so the customer can get great mileage with a Toyota if that's important to them. When it comes to Detroit, alas, they have no truly high mileage cars. What Detroit should be paying attention to is turning out a car that can compete directly with the Prius because even if they manage to beat back the federal mileage requirements, they won't be so lucky with the consumer's mileage requirements.

 

<div class='quotetop'>QUOTE(JackDodge @ Oct 3 2007, 02:05 PM) [snapback]520755[/snapback]</div>

Jack again it is perception. What was the total volume in '06 of the three vehicles you mentioned? 207,000 of Toyota's 2.5 million sales, less than 10%. Just for comparison Toyota sold 322,000 Lexus.


<div class='quotetop'>QUOTE(JackDodge @ Oct 3 2007, 02:05 PM) [snapback]520755[/snapback]</div>

Beware of the Malibu. It will be launched in less than 30 days.

 

<div class='quotetop'>QUOTE(malorn @ Oct 3 2007, 01:48 PM) [snapback]520742[/snapback]</div>

It may be about money... of course, It's about the money.

Have you noticed when a highly reliable car is produced... it is discontinues after about 4 or 5 years. No car manufacturer wants to be responsible for NOT sending after sale business to their dealers. The parts and repair business is bigger than the new car sales business. Dah. So, it could be all about the balance in the manufacturers product line.

The Prius is a magnificent fluke. It has fewer parts. It may be too reliable... and would be discontinued unless there were less reliable cars and trucks in the Toyota lineup to keep the repair and parts business alive. It is the nature of things until manufacturer go direct... like GM's introduction of the Saturn.

Our suggestion... don't sell you stock. Toyota knows what it is doing.

 

America got into this mess by letting the auto manufacturers and big oil have too much say in the direction that this country should take environmentally. Should we really rely on the same entities to deliver us from a grim future of fuel shortages and possible climate change brought on by over use of resources?
Toyota is having a "Hugh Grant lapse of good judgement", by backing legislation to put off change in this country, I never could look at that man again in movies with any respect, let's hope that Toyota won't share the same glory if successful in their dirty deeds.

P.S. My quest to see a Toyota Tindra doing any kind of work in my area, besides hauling around the nice person that was driving it, almost came to an end: I saw a black truck carrying a kitchen table and chairs! When I got closer I saw that the truck was a Ford F150, back to the quest I guess...

 

The Union of Concerned Scientists have a web site http://ucsaction.org/campaign/10_03_07_Toyota where one can send an email to Toyota concerning one's displeasure with Toyota joining "Detroit" in opposing the new proposed CAFE standards.

Certainly can't hurt if anyone is so inclined.

 

<div class='quotetop'>QUOTE(kram @ Oct 4 2007, 08:12 AM) [snapback]521102[/snapback]</div>

Thanks for bringing that link to our attention.

 

Its the short-sighted bottom line profit that many corporate executives fixate on. Large pickup trucks have higher profit ratios than any other vehicles. Pickup trucks and other large high-profit vehicles are the only reason GM and Ford have not gone belly-up. Thus Toyota is on the same bandwagon. If they didn't have the Tundra it might be a different story.

 

<div class='quotetop'>QUOTE(abq sfr @ Oct 4 2007, 02:11 PM) [snapback]521286[/snapback]</div>

Now that Chrysler is privately held and not having to worry as much about quarterly numbers, it'll be refreshing if they stop worrying about that kind of nonsense and concentrate on the long term. Wouldn't that be a shocker, one of the Detroit 3 actually known for real quality and reliability. That would be too much to hope for.

 

<div class='quotetop'>QUOTE(abq sfr @ Oct 4 2007, 02:11 PM) [snapback]521286[/snapback]</div>

So let's repeal the chicken tax. Light trucks are sheltered from foreign competition due to the 25% tax on any foreign-built light truck imported into the US. But not cars. The chicken tax is not the underlying reason, but its certain a contributing reason, for the unreasonable US focus on light trucks (ie, pickups and SUVs) rather than cars. The Big 3 make big bucks on trucks (but not cars) in part because they are sheltered by the chicken tax.

See here, for example, for as good an explanation as any of the tax on imported trucks:

http://blogs.edmunds.com/.ee8f829

 

Lobbying aside, I think it's scary that foreign companies are allowed to lobby in the US at all.

I'm really of the mindset that corporations should not be able to lobby, but more so if those are foreign owned

 

<div class='quotetop'>QUOTE(MikeSF @ Oct 5 2007, 03:26 PM) [snapback]521913[/snapback]</div>

You would never believe the influence Beiging and tokyo have in Washington. As far as the Chicken tax i would support it being expanded to include anything and everything imported by Wal-Mart! :lol:

 

<div class='quotetop'>QUOTE(MikeSF @ Oct 5 2007, 04:26 PM) [snapback]521913[/snapback]</div>

With so much of GM's stuff being manufactured in Canada and Mexico, and with more and more Toyota stuff being manufactured here (even as Toyota opens new plants in the U.S.A., GM continues with layoffs here in the U.S.A.) one would think that it would be GM that would not be allowed to lobby. GM is the company that is becoming the king of forign outsourcing. Maybe you ought to try to define 'forign'.
And good luck with that.

 

<div class='quotetop'>QUOTE(hill @ Oct 8 2007, 11:47 AM) [snapback]522755[/snapback]</div>

How can you say that with a straight face? How many people does Toyota employ in North America?

If Toyota was a its own country there are only 5-6 countries in the world with a larger deficit of trade with the US than Toyota. Do some checking. It looks like you drank the Toyota kool-aid. , just like the anted you to over in Toyota City.

<div class='quotetop'>QUOTE(hill @ Oct 8 2007, 11:47 AM) [snapback]522755[/snapback]</div>

A foreign company is a company headquartered in another country which brings its profits back to said country to be circulated in that country. Pretty simple when you get down to it.

 

<div class='quotetop'>QUOTE(malorn @ Oct 8 2007, 10:15 AM) [snapback]522775[/snapback]</div>

WHy do you GM fanboys keep talking about North America??? Last I checked the US, Mexico and Canada were sperate countries. GM hides behind the fact that they moved a lot fo stuff out of the US to Canada and Mexico, jsut call it North America. So maybe pull up the actual figure of US jobs over the least 10 years at GM and then Toyota, and remember US not NA.

Where is the actual numbers for your second statement?? Also show the numbers for GM, again the US is not NA.

I think it is you who are drinking too much of the GM kool-aid. Oh wait you have a vested interest, trying to sell GM trucks. It is people like you who cause a lot of people to turn their back on a brand and company: You focus more on propaganda spread with misinformation rather than focussing on producing top notch product and where the market needs to move (use less fuel!!). All hype and propaganda with no quality product to back it up. I love the Texas expression that applies to GM in this regard, "big hat no cattle", produce the goods first and then we talk again.

 

<div class='quotetop'>QUOTE(bulldog @ Oct 8 2007, 12:26 PM) [snapback]522780[/snapback]</div>

I can't find a number for Toyota for just the US. They only report NA, 38,000 employed, white collar, office, secretarial, janitorial, everything. Remember 73,000 union members (employed by GM in the United States only) went on strike in September.

@ $42,000,000,000 Toyota's deficit with the Unites States would only be eclipsed by

China-$232,000,000,000
Japan-$89,000,000,000(includes Toyota numbers)
Canada-$73,000,000,000
Mexico-$64,000,000,000
Germany-$47,000,000,000
Toyota-$42,000,000,000

Real numbers check them yourself.

http://www.census.gov/foreign-trade/top/ds...12/deficit.html

 

<div class='quotetop'>QUOTE(hill @ Oct 8 2007, 11:47 AM) [snapback]522755[/snapback]</div>

Hill here are the REAL number through Sept 30,2007
...............................................General Motors-------------------------Toyota
Built in the United States.............2,125,989-----------------------714,760
Built in Canada.............................616,451-----------------------------234,221
Built in Mexico..............................360,246------------------------------24,705
Built in Japan or Korea....................74,904-----------------------------905,833

These are the REAL numbers. Also remember this includes vehicles built in Canada and Mexico to be sold in Canada and Mexico. Also remember GM sells considerably more vehicles in both of those locales than Toyota as it does in every one of the worlds top ten markets except those which are protected(JAPAN!)

The Facts paint a much different picture than the "urban legend" does. I wonder where these "legends" originate?

 

<div class='quotetop'>QUOTE(malorn @ Oct 8 2007, 10:29 AM) [snapback]522782[/snapback]</div>

I miss the Toyota foreign trade numbers in the link, pulling data out of thin air again I see.

I also don't see the US employment trends for GM and Toyota nor references to the numbers you mention.

 

<div class='quotetop'>QUOTE(bulldog @ Oct 8 2007, 05:31 PM) [snapback]522813[/snapback]</div>

Multiply the number of cars and trucks toyota imported in 2006 times the average cost per unit. 1.4 million units times $30,000/unit. Probably a little high per unit, toyota does not seem vey eager to publish the numbers.

I know it is probably hard for you to grasp but explain to me how Toyota is helping the American economy by importing over a million vehicles every year into the United States.