Toyota's production to PLUMMET 4.5% this year (welcome to #1)

[HoosierRon]

Ironic that the Japanese media will report this, but such news is 禁止されて (verboten) in the U.S. media.

Report: Toyota Plans 4.5% Cut in Global Production For This Year

The automaking giant had increased worldwide production annually by 500,000 to 800,000 vehicles since 2002, turning out 9.49 million in 2007. The revised 2008 target of roughly 9.5 million to 9.6 million vehicles reflects cutbacks mainly in Japan and the US. The figures include the projected output of group members Daihatsu Motor Co. and Hino Motors Ltd.

...Toyota has decided to suspend production lines in Texas and elsewhere for such vehicles for three months starting next month, curbing output by 50,000 to 100,000 units. Its US production this year is expected to fall below the 2007 level of about 1.3 million vehicles, even with increased output of hot-selling smaller cars.

[69Firebird400]

Actually it's lowering its 2008 target by 4.5%. If the target is 9.5 million and they built 9.49 million last year, in 2007, the production for this year - if it goes according to their revised plan - would actually be up 0.1%.

Your headline is not accurate according to the linked article:

The Nikkei reports that Toyota Motor Corp. plans to lower its worldwide output target 4.5% this year from 9.95 million units to as low as 9.5 million as sales of large vehicles slump in the US.

[eurohazard]

"Plummet", great word.

[fp115]

Originally Posted by eurohazard

"Plummet", great word.

Reminds me of plummer mixed with a farret.

[eurohazard]

Originally Posted by fp115

Reminds me of plummer mixed with a farret.

lol, I had a visual of a stinky little rodent with perma-ass-crack trying to bit someone's toes off in the middle of the night!

[tom3]

A successful company being realistic about coming sales. Rather than build huge numbers of vehicles that will sit on lots for half a year they build what they can sell. And 9.5 million sales is sure not a bad number.

[fp115]

Originally Posted by eurohazard

lol, I had a visual of a stinky little rodent with perma-ass-crack trying to bit someone's toes off in the middle of the night!

Here is a new slogan someone should use!

[HoosierRon]

Originally Posted by tom3

A successful company being realistic about coming sales. Rather than build huge numbers of vehicles that will sit on lots for half a year they build what they can sell. And 9.5 million sales is sure not a bad number.

Here we have a perfect example of someone who is incapable of imagining that Toyota can do any wrong. The reality (for those of you interested) is that Toyota ALREADY HAS misjudged the market. If Toyota wanted to be realistic about coming sales and not produce a huge number of vehicles that would sit on lot, it would have done this a year ago. It's failure to see what has ALREADY COME shows that it made the same errors as everyone else.

Automotive news
LOS ANGELES — Toyota and Scion vehicle inventories have risen to record levels because the company misjudged just how much the U.S. market would decline this year.

The number of units in dealership stock and en route have swelled to about 376,000. That's about 100,000 units more than were on the ground last summer, and up from about 348,000 a year ago.

The main problem: Toyota produced lots of pickups and SUVs, a gamble that has not paid off.

"We have an overabundance of trucks," said a dealer in the region of giant distributor Southeast Toyota.
...
"February was the highest dealer stock in the history of our region in terms of gross units," said the Southeast Toyota dealer. "I don't think we have hit an objective since July or August."

A Southeast Toyota spokeswoman declined to comment.

In some regions, Toyota's "turndown" inventory — vehicles that no dealer wants to claim — has risen sharply. Those regional pools consist mostly of the Tundra full-sized pickup, Sienna minivan and Sequoia and 4Runner SUVs.

Sounds an awful lot like GM back when it was #1, doesn't it?

[AMERICA 123]

Originally Posted by HoosierRon

Here we have a perfect example of someone who is incapable of imagining that Toyota can do any wrong.

The reality (for those of you interested) is that Toyota ALREADY HAS misjudged the market.

If Toyota wanted to be realistic about coming sales and not produce a huge number of vehicles that would sit on lot, it would have done this a year ago.

It's failure to see what has ALREADY COME shows that it made the same errors as everyone else.

Sounds an awful lot like GM back when it was #1, doesn't it?

YEP.

Independent of spin, what makes Toyota's situation a little harder to see is all their previous 'momentum'.

They have had so much of that for so long ( most importantly including 2004 -2007) - nobodies picking up on in a very real sense, how severe this change up is hitting them - the overall numbers so far are not that bad.

Without a doubt, we are seeing a very large 'negative' change for them in terms of momentum.

In regards to the US, its one of the larger ones by an Asian OEM since '73 - and its probably the worst one Toyotas actually experienced here - in most ways that count.

Obviously, their planned and provisioned for (at great expense) large 'heavy' vehicle assault on product segments and geographic areas in the US has been completely disrupted - basically destroyed.

Your title is appropriate when a realistic assessment is made about where they were planning and heading for - that original 9.85/9.87 million was a target they intended to exceed at least by a little.

The best proof of this and your comments is how Nissan, Honda and Hyundai are doing versus Toyota.

You are also correct about the press on this in another way - worldwide (besides missing any insightful analysis) - the basic numbers are being misreported and minimized as well.

The zillion dollar question is for how long and how deep will this 'full speed astern' cut in terms of the future.

Which leads us to yet another aspect of their story that's not being reported properly - the lack of production flexibility in NA.

GM, Ford, and Chrysler are all showing signs of recognizing and doing the hard things faster - Toyota is going the slowest of the bunch.

This may turn out to be a correct move on their part - right now it just looks slow.

Notice, they can't even provide a useful powertrain tweak for a single one of their products.

Come the 2009 MYR, the '4' counts as 'two' Corolla/Matrix and Camry/Solara 'twin's are going to be really feeling it from virtually the rest of the industry.

( Also, the Solara goes away. )

That's significant because they are accounting for 42.5% plus of their sales right now.

Appears there is going to be a gap between the 'hybrid' restoration and now.

[AMERICA 123]

And, then (any) OEM can get news like this.

http://afp.google.com/article/ALeqM5...jfcPz6i3Z4N0iQ

Blaze curbs production at Nippon Steel plant: officials

3 hours ago

TOKYO (AFP) — A fire blazed for more than 12 hours Tuesday at a plant of Nippon Steel Corp., forcing Japan's largest steelmaker to suspend some production for automakers during a period of tight supply, officials said.

No one was injured in the blaze that broke out at the the company's fourth largest plant in Kitakyushu in Japan's southern island of Kyushu, officials said.

Black fumes continued to spew and small fires spurted from the charred plant after the main blaze was put out, as nearly 30 fire trucks waited outside, a police spokesman said.

He said fumes were expected to continue for more than a day but that carbon monoxide levels were low and would not pose a risk for residents.

Nippon Steel said it stopped its coal furnace and some of its production lines, and was assessing the damage.

"The basic coal furnace has stopped, so in terms of production the impact is very large," company spokesman Hiroshi Nakashima said.

[tom3]

Originally Posted by HoosierRon

Here we have a perfect example of someone who is incapable of imagining that Toyota can do any wrong. The reality (for those of you interested) is that Toyota ALREADY HAS misjudged the market.

I stand corrected. Never owned a Toyota, never will. But their sales continue to increase slightly while the former big three's sales plummet.


The Wall Street Journal reported Monday.

The auto maker said it expects to sell 9.5 million vehicles this year, according to the Journal, and is cutting its production to that number, down from the 9.95 million it planned to manufacture in 2008.

The sales forecast represents a 1 percent increase over 2007,

[gaffo]

Originally Posted by HoosierRon

Here we have a perfect example of someone who is incapable of imagining that Toyota can do any wrong. The reality (for those of you interested) is that Toyota ALREADY HAS misjudged the market. If Toyota wanted to be realistic about coming sales and not produce a huge number of vehicles that would sit on lot, it would have done this a year ago. It's failure to see what has ALREADY COME shows that it made the same errors as everyone else.



Sounds an awful lot like GM back when it was #1, doesn't it?

agreed. Toyo has alot of lots full of truck and SUVs just sitting there.

but unlike GM they do offer SMALL cars too (which are now soldout on all lots).

Toyo is now stuck with no inventory of small cars and alot of buge trucks. Toyo will just have to eat the SUVs/Trucks and ship over more of their small cars.

GM on the otherhand never bothered to design one single small car (since the Beat was never even considered for US sales (why they had us vote on it is beyond me) to compete.

once again GM fails to adapt.

[roteague]

Originally Posted by gaffo

but unlike GM they do offer SMALL cars too

Really??

Chevy Cobalt Sedan 25/36
Chevy Cobalt Coupe 25/36
Chevy HHR 22/30
Chevy Aveo 4-door 24/34
Chevy Aveo 5-door 24/34

That doesn't count:

Pontiac G5 24/35
Pontiac Vibe (09) 26/32
Saturn Astra 24/30

Looks to me like GM also offers small, fuel efficient cars.

[gaffo]

Originally Posted by roteague

Really??

Chevy Cobalt Sedan 25/36
Chevy Cobalt Coupe 25/36
Chevy HHR 22/30
Chevy Aveo 4-door 24/34
Chevy Aveo 5-door 24/34

That doesn't count:

Pontiac G5 24/35
Pontiac Vibe (09) 26/32
Saturn Astra 24/30

Looks to me like GM also offers small, fuel efficient cars.

Yes "really"

only one on your list is SMALL - the aveo. And it is stodgy in style and gas mileage is poor for its small size (though in fairness it is a excellent buy for the money, and mechanically decent).


All the other cars you mention are mid-sized.

when I say small i mean SMALL: MINI, Fit, Yaris....................and even smaller (which are no longer offered by any maker here in the US - Geo Metro, Festiva) and the smaller car found in Europe.

$5 a gallon demands that truely small cars be offered here in the states.

Vibe and Cobolts are NOT small, and 28 mpg is not good enough. If there were I would have concidered buying one last fall when I bought my small car.

Me need more hatchbacks too - not sedans.

[fp115]

You sir must get out of the reality that GM is only in North America. GM has PLENTY of small cars in other markets than North America. All vehicles offered by Daewoo in Latin and South America. Cars offered in China. There are many.

Cobalt is considered a small car, the level up to it is mid-sized. Heck the Astra is smaller and also considered a small car. GM also has issues keeping their cars on the lots and all the cars roteague mentioned cannot stay on the GM lots very long.

What you are talking about is a MINI car, not a small car. The Beat is smaller than the Fit and Yaris. Its about the size of a Smart Car.