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Toyota Has Worst Weekly Drop in 21 Years as U.S. Market Slumps
By Naoko Fujimura
Oct. 3, 2008



(Bloomberg) -- Toyota Motor Corp., the world's second-largest carmaker, had the biggest weekly decline in 21 years in Tokyo trading after tightening credit in the U.S. caused sales to plunge.

The automaker dropped 14 percent to 4,080 yen, the most since the week ended Oct. 23, 1987, when it slumped 19 percent, according to data compiled by Bloomberg. The benchmark Nikkei 225 Stock Average sank to the lowest in more than three years.

Toyota and other Japanese carmakers fell after U.S. jobless claims rose and monthly manufacturing output contracted, adding to evidence the world's largest auto market is entering recession. Toyota is offering no-interest loans on 11 models in the U.S., as its sales there plummeted 32 percent in September, the biggest such decline since 1987.

``The U.S. is in the middle of a hurricane,'' said Hitoshi Yamamoto, chief executive officer of Tokyo-based Fortis Asset Management Japan Co., which manages $5.5 billion in Japanese equities. ``Even Toyota needs to offer such deals in the U.S.''

Industrywide auto sales fell for the 11th month in a row, the longest slide in 17 years, as the financial crisis caused lenders to toughen loan standards and consumers curbed spending.

Toyota's U.S. sales last month fell across the company's Toyota, Lexus and Scion brands, with the exception of two models: the revamped Sequoia and Lexus LX 470 large sport-utility vehicles that have been available for less than a year.

Starting this week through Nov. 3 customers with ``good credit'' can take loans lasting between 36 months and 60 months, spokesman Xavier Dominicis said in an interview yesterday. The program spans the model range from Corolla small cars to Tundra pickups.

``Toyota's program may lure customers,'' said Yasuhiro Matsumoto, general manager of credit risk analysis at Shinsei Securities Co. in Tokyo. ``At the same time, it's running a risk of customers defaulting on their loans.''

In the U.S., The Institute for Supply Management on Oct. 1 reported its factory index dropped last month to 43.5, the lowest since October 2001. A reading of 50 is the dividing line between expansion and contraction. Initial jobless claims increased 1,000 to the week that ended Sept. 27, from a revised 496,000 the prior week, the Labor Department said yesterday.

http://www.bloomberg.com/apps/news?pid=20601101&sid=aRM2grAns_3M&refer=japan
 

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Reality will eventually body slam perception:
Toyota has had a free ride for years and doesn't deserve the stock price it had 2 days ago.
Just like GM shouldn't have been in the 40s earlier in the year as sick as that company is.
Chevrolet has a higher average fuel econmy average than Toyota, but if you asked 90% of the people in the World whose vehicles are more fuel efficient, they would say Toyota.
I think it's good in a way their stock price is down. It deserves to be down.
i'm not gloating. Thats just the way it is. I've got 725 shares of Wachovia so I can't really feel too sorry for Toyota stockholders. it's all relative.
 

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In U.S. dollars, that means Toyo shares are trading for about $38.
GM shares are selling for about $10
 

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Grow up. This wouldn't be happening if your economy wasn't in the tank.
The U.S. is the central hub of the ecomony worldwide. You talk as if your not American. Wishing ill on anyone isn't the way it should be, but Toyota has it coming to them. For everyone job they offer here in the U.S. tens of thousands are put out of work. So, if you were in "our" economy maybe you would understand the sour taste left in the American mouth that continues to get slapped. Peace be with you.
 

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In U.S. dollars, that means Toyo shares are trading for about $38.
GM shares are selling for about $10
Comparing share price is meaningless... a GM share can be a much larger or much smaller piece of the company than a Toyota share, so it's absolutely irrelevant to look at the share price - you could be comparing berries to watermelons. You have to compare market caps (or the given market price for identical %s of the companies, the same thing in fact) if you want apples to apples.
 

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Toyota can be so unpredictable
 

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It seems like everyone is suffering. However, I'm sure that American companies are suffering more because of the financial crisis and the increasing gap between the rich and the poor.
 

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Excellent! I think the juggernaut is in trouble; maybe juggernaut was a little premature from the press?
 
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