Even Detroit’s fiercest defenders allow that The Big 2.8 should have thought a little further ahead than a single financial quarter– although they’re sure that Wall Street’s responsible for the shorter-termism. Hey! Anyone remember when Cerberus said they’d be better owners for Chrysler than anyone ’cause they didn’t have to report to Wall Street? You know: we’re quick! Less bureaucracy! More selling! Turn on a dime! Well, a dime’s about all they have left and former ToMoCo Prez Jim Press has dibs on that bad boy. Anyway… even though Toyota isn’t $30b in debt, the Japanese automaker is in full crisis mode. Yesterday, the Prius plant plotzed and they shit-canned executive bonuses. Today, we hear that the diesel engine project with Isuzu is DOA– minus the “OA.” You know that $1m ho’ down the Toyota used to throw for its dealers in Sin City? Gone. Seriously, talk all you want about misplaced Tundras, but these guys don’t dance this mess around. Just-auto {sub] reports that Toyota’s UK Managing Director reckons it could be as long as five years before the automaker’s biz recovers to last year’s level. “We have our forecasts for the next 24 months,” Miguel Fonseca revealed. “But it is very difficult to forecast further. After two years I think there will be a slow recovery, but my own belief is that it will be five years before we are back where we were.” And here’s something The Big 2.8 might have said, I dunno, ten years ago…
“We have to adjust our cost base to this new reality.” At the same time, ToMoCo UK plans to pursue the same-old core business plan– while eating someone’s lunch.
“These difficult market conditions will be an opportunity for us to gain market share as other manufacturers weaken but our total sales are not likely to increase… This will make cars more accessible and protect dealer profit margins rather than discounting. We will not push volume, but we will protect our dealer network. That is our key role.”
What’s the best Toyota NA is thinking along the exact same lines?
Worrying when one doesn’t really need to is how Toyota makes ten billion dollars a year in good times and five billion a year in bad.
“the Prius plant plotzed”
I don’t care who ya are, that there is some real good writin’.
Wow. Corporate Responsibility. What a concept.
They aren’t wishing, hoping, blowing smoke, and looking for a huge handout to stay the (failed) course.
Does one need a clearer picture of where the DET players come up short?
Amazing!
When the press at Toyota speaks..
Its the whole truth.
Should we bow after reading thier statements ?
Well,
I hope they will be OK(not really)
since the Japanese government doesn’t have any more funds than the U.S. to bail them out…
Time to share the pain boys…..
I cant wail to see their billions of cash disappear….
but,thank God, they can still screw owners at the service department.
Whole truth? I wouldn’t go that far, by a long shot.
They are still a big corporation, and inherent to that status, they will often have reality-challenged press releases.
I think you’re missing the meat of the sandwich. Times aren’t good. There’s no realistic scenario that has auto sales (US/EU market) going anywhere but down for the next year or two. Maybe they start going up in 3 or 4 years. But getting back even close to the levels of 2007 will take a long, long time.
Toyota has responded quickly and responsibly to those ‘new realities’.
And if you wanna get screwed at a dealer service department, go price a part for a Sunbird. $520 for a camshaft. $800 for an EFI brain. $900 for a compressor for GMC van. ALL dealer parts are obscenely marked up. Regardless of make or vendor. If you are unable to figure out where to buy the OEM parts for half or less, they figure it doesn’t matter to you. Because it’s generally easy.
So when is Toyota going to drop out of F1 and NASCAR ?.
Oldyak & Porschespeed….
Very true, dealers have many places they can screw the public; advertising(is there an industry that has more dishonest advertising?), the showroom(bait & switch), the salemans office(double talk and outright lies as encouraged by management), the F&I office( I don’t think I have to expound on this one), aftersale(ha) and your good old service & parts depts.
After working for 4 different dealers a total of about 14 years, I must say some of the things I witnessed makes me feel unclean for being associated with it.
The economy, bad management and the UAW are not the only reasons for the fix the industry is in, the dealer network can certainly share a good amount of the blame.
What no management bonuses?!! Oh yeah we heard that was coming weeks ago and some people told us to shut up and stop praising Toyota/attacking GM for the move to eliminate management bonuses when they hadn’t even done it yet. Well, now they have. Is it okay for me to say that Toyota gets it and GM, et.al. don’t? Rabid Rick Maximum Bob get bonuses for losing money, Toyota takes away bonuses when PROFITS are down. Profits are still there, just less than last year.
63CorvairSpyder,
True enough. To me that points to the larger issue- a failed model. Most dealers I know make darn good money (they deal foreign), but they do really have a lot of (to me) useless overhead – so it’s no surprise that somebody has to fund that.
GM (or anybody) buys a boatload of power window motors for like $7 each. When you go to the dealer, it’ll cost you $95. Easy. Lotsa overhead that has to be funded on the corporate level.
Just the way the current system is structured. It could be a helluva lot easier and cheaper, but that will take further shaking out.
Makes me wonder what jim press is thinking right now. Remained with toyota chance of being in employment for foresable future . At chrysler oh no. Or what i’m i missing?