It’s Not Just The Big Three

December 22, 2008

Toyota’s hurting:

“Toyota Motor, the Japanese auto giant, announced Monday that it expected the first loss in 70 years in its core vehicle-making business, underscoring how the economic crisis is spreading across the global auto industry.

On Monday, Toyota said it expected a loss during the fiscal year of 150 billion yen, or $1.7 billion, in its group operating revenue, the amount it earns from its auto operations. Toyota said that would be its first operating loss since 1938, a year after the company was founded.

The loss would also be a huge reversal from the 2.3 trillion yen, or $28 billion, in operating profit Toyota earned last fiscal year. The company, which has been neck and neck with General Motors to be the world’s largest vehicle-maker, said it still expected to eke out a narrow net profit in the current fiscal year, which ends March 31.”

But Toyota has some advantages over its American counterparts (aside from making a quality product):

“With some $18.5 billion in cash, and relatively little debt, Toyota is still in far better shape to weather the downturn than G.M. and Chrysler, which on Friday received $17.4 billion in emergency loans from Washington.”

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