A car question: Why is Toyota in financial trouble?

[samintx]

I thought people were buying Toyotas instead of Amer cars....so I'm confused. Or are people not buying ANY car?

[rgG]

Or are people not buying ANY car?

Ching, Ching, we have a winner!

[Lux Interior]

GM, Ford & Chrysler are in financial trouble.


Toyota is merely feeling the effects of the economic slowdown/recession.

GM: $4.2 billion operating loss in third quarter.

Toyota: $1.79 billion in operating profit.

[OWC Jamie]

I keep hearing the phrase "people snapped thier wallets shut in September".
Some seem to have opened them up a bit on Black Friday. Haven't heard how CyberMonday went yet.


The local Chrysler/Dodge dealer is paying the billls buying used cars at auction and selling them rather than new cars. They're selling cars, just not new ones. (they usually don't buy used cars at auction)

[Go To Top]

No financing. Cash scarce.

[dmann]

From what I have heard (and I watch/listen to WAY too much news), Black Friday was better than expected, but Saturday and Sunday dropped off severely.

Cyber Monday was up a slight bit, but that phenomenon seems to be ebbing each year anyway as more and more people have high speed connections at home, they don't have to wait until they get to work to jump on a DSL, T1 etc.

As for the car situation, a few long-standing dealerships here in the Chicago area have closed. The other problem to keep in mind is that people are having a hard time getting loans to pay for the cars, so even if they want/need one, they may not be able to get one.

DM

[Spiff]

It's interesting that the reports are vague in what really went on with Black Friday and CyberMonday. The reports state (that I've seen) that consumerism rose on those days.

How about the actual revenue/income? Did anyone make money, or did they break even to last year due to larger discounts? And if companies did make money, how much of an increase was it over last year? Anyone have links for this kind of data?

Sorry, I think this thread just got hijacked.

[samintx]

Spiff wrote:
It's interesting that the reports are vague in what really went on with Black Friday and CyberMonday. The reports state (that I've seen) that consumerism rose on those days.

How about the actual revenue/income? Did anyone make money, or did they break even to last year due to larger discounts? And if companies did make money, how much of an increase was it over last year? Anyone have links for this kind of data?

Sorry, I think this thread just got hijacked.

Well, I read after black Friday that altho lots of people the margins were razor thin. I thought it interesting a Forum member was inquiring about a Radio Shack item... online a huge discount & free shipping but the store had it the regular 149.00 price. Seems like this would drive people to seek the Net for purchases.

[M A V I C]

I know one local GM dealer is trying to get used cars too.

I forget the other company but only two adjusted production correctly for this last quarter. Audi was one of them. I'm betting Toyota's numbers were a little off because they've had a hard time moving some of their vehicles.

[macphanatic]

One of the big issues for auto sales or the lack there of was the lack of a credit market for a few weeks. People, even those with good credit ratings, couldn't get car loans.