Hey Toyota Republican senators from Dixie, don't count on any plant expansions in your states soon..

[marmar]

:nopity:



Toyota warns of $5 billion fiscal year operating loss
World's largest automaker hit by weakening sales, stronger yen

By Chris Oliver, MarketWatch


HONG KONG (MarketWatch) -- Toyota Motor Corp. said Friday losses for the business year ending next month will be larger than it had earlier forecast as sales weaken in Japan and overseas markets, and an appreciating yen trims the value of repatriated foreign earnings.

Toyota said its operating loss will likely widen to 450 billion yen ($4.95 billion) for the fiscal year ending March 31. In December, the Nagoya-based automaker forecast a 150 billion yen operating loss.

The operating loss is Toyota's first since the end of World War II.

"Toyota will be facing a tough time for the next few quarters," said UBS analyst Tatsuo Yoshida in Tokyo.

He said Toyota will need to take bold steps to reduce its capital expenditure and research and development costs if it wants to return to profitability in a year when industry-wide global auto sales are expected to contract 10%.

UBS said the wider loss was related to a 220,000 unit cut in Toyota's global annual output estimates which knocked earnings by 210 billion yen and valuation losses by 90 billion yen on interest rate swaps. ........(more)

The complete piece is at: http://www.marketwatch.com/news/story/Toyota-warns-5-billion-fiscal/story.aspx?guid=%7B53DF3673%2DD299%2D4EA3%2D829F%2DC9E8827A2819%7D

[madrchsod]

1. looks like toyota needs to cut wages and benefits.....

[jody]

2. Good point but when the economy improves, plant expansions will be there. n/t

[marmar]

3. Just making a point about the anti-Big 3 asshat Repug senators like Sessions and Corker.....

.... and Chambliss, and Isakson, and Cochran, and Graham, and Burr ....... and the list goes on and on.

[jody]

I understand and the counterpoint is when the economy improves, jobs outsourced from the North to

the South or from the US to other countries will IMO never return to their original locations except in token numbers.

[marmar]

6. Until of course Toyota finds locations with even cheaper labor than the right-to-work South.....

n/t

[jody]

9. Agree. n/t

[Romulox]

7. You seemingly contradict yourself when you predict expansion of plants in the South, then...

"jobs outsourced from the North to the South or from the US to other countries will IMO never return"

I don't see any real basis for this assertion, which seems to contradict the "never coming back" meme. What makes you think the South has much to offer manufacturers in the future? My understanding is that the decision to locate plants in the South are a function of exchange rates, tariff laws, and the overall political climate. All these are subject to rapid change.

Ultimately, the South cannot compete against China, so to assume a booming auto industry in the South into the future is just as delusional as believing that "the jobs will come back" to the North.

[jody]

11. Agree, first workers migrated from South to North, then jobs migrated North to South, and then jobs

migrated from the US to foreign countries.

Many argue that outsourced jobs will not return to the US until there is more parity between wages in the US and foreign labor markets.

Modern technology makes it easy to move industrial capital equipment to cheap labor and fast, low-cost transportation makes it cheap to move finished products to distant markets.

Inventory is now stored in transit rather than regional warehouses.

Factories use equipment that requires less special tooling etc. than in the early 20th Century reducing set up time and cost to produce a given product lot. That means economic production lot size is lower with attendant lower work in process inventory, etc.

IMO those are just some of the factors that will cause redistribution of the world's basic industries during the 21st Century.

[boomerbust]

10. Hey jody

Let's not forget the biggest slug of them all, none other than your Alabama Sen. Shelby. Here is a picture that might prove your opinion worthless.

[jody]

12. Shelby is not my choice to represent Alabama. n/t

[boomerbust]

4. What a shame

:evilgrin: :nopity:

[Romulox]

5. Why can't Toyota make cars people want??? nt

[Ganja Ninja]

8. I guess those Senators won't be asking for any bailout money.

Because that would be hypocritical and we all know that Republicans would never do that. :spray: