The Japanese Auto Giant Toyota Motor Corp is Announcing their first operating loss in 70
years. They have been hit as well , in large part because of the Monstrous Drop in Demand in the key USA market [35% of sales]. The Weak Global Economy and Surging Yen has Greatly Depressed Japanese exports across the board.
The Mood was Pure Gloom at the president’s annual year end conference as Toyota President Katsuaki Watanabe said : ” It’s a kind of emergency that we’ve never experienced before. The Environment Surrounding us is Extremely Harsh. The Tough Times are hitting us far Faster , Wider and Deeper than expected . The Change that has hit the World Economy is of a critical scale that comes once in a hundred years – This is an Unprecedented Crisis requiring Urgent Action ! ”
Mr Watanabe also warned that it’s not yet possible to tell where the market’s bottom will be.
Automakers around the world are facing a sharp fall in demand as the global financial crisis spreads – squeezing credit and consumer confidence in the process.
Asian markets , which had by contrast to USA and Europe – held up , are now crumbling at a dizzying speed. It’s not only Japan – the Chinese economy is also slowing sharply as exports to Europe and the United States plunge.
Toyota Motor Corp said it expects an operating loss of 150 billion yen or $1.66 billion USD for their fiscal year ending in March – compared to operating profits of 2.27 Trillion yen or $25.2 billion USD the previous year. However Toyota will still post a small net profit of 50 billion yen $555 million dollars thanks to non core business , outside dividend income – a dramatic change of fortune for the iconic company.