Katsuaki WatanabePresident, Toyota
Toyota is facing a current profit crisis that they have never seen before, as sales fall in North America and a rising yen.
Toyota has now reduced there year end outlook as the company headed by Katsuaki Watanabe looks to find solutions. Mr. Watanabe who was picked to continue to lead the company in continued profitability has more than his hands full. Mr. Watanabe is the Chairman of a select committee in charge of making sure that the company is stays in the black over the course of the next two years.
Toyota North American sales fell 9.4 percent between the periods of April - September 2008 and the entire company has slashed there full year global sales outlook 7.6 percent to 8.24 million vehicles for there fiscal year.
I have predicted for quite some time that the meteoric rise of this manufacturer over the last few years as the overall retail auto industry has slowed cautioned me to look at how Toyota was prepared to handle there success especially as it related to selling and marketing there product lineup. Consumers love there vehicles, however the product mix is all wrong for the current climate, we all new that the Domestic manufacturers mix was wrong, but as the love fest with Toyota has been reaching the crescendo, I saw chinks in the armour.
The market has not been keen to retailing trucks and SUV's over the last few years and with the fluctuating gasoline prices and tightened credit markets people are not buying these vehicles.
And Toyota has to sell a lot of them to remain profitable, in addition what are they going to do when these vehicles come back from there current leases as the financial industry is backing away from leases and rapidly deteriorating residuals plus used car valuations plummeting is a perfect storm for Toyota's current and future profit problems.
I don't want to say I told you so, but....
More to come...
Enjoy Today!
That Car Guy
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