Everybody knows The Big Three are hurting, but the import brands aren't doing much better. Toyota reported its financial results for the third quarter yesterday and it wasn't pretty.
Net revenues were down 28.4 percent compared to the same period last fiscal year. Net income decreased from 458.6 billion yen to a loss of 164.7 billion yen.
Toyota also forecast a net operating loss of $3.8 billion for the year ending March 31st, it's first such loss in 59 years.
Executive Vice President Mitsuo Kinoshita said, "Both revenues and profits declined severely during this period. The negative results are largely due to lower vehicle sales volume under difficult market conditions mainly in the U.S. and Europe, and the rapid appreciation of the yen against the U.S. dollar and the euro."
flicmod says:
08:37 AM, 02/ 6/09
Of course Toyota and the rest of the Japs are losing money! Japan has passed similar economic "stimulus" packages.
The truth is that the economy (aided with low interest rates and government subsidies) has been growing disproportionately for decades. Bad global economic policy has grown the world economy faster than it should have. We've enjoyed the cushy, spend-hardy years while they lasted. Now all those years of living outside of our means have caught up to us.
Recessions fix this. It resets prices to what they should be, helps to correct the over-inflated currency, and gets rid of horribly-run businesses.
The more the governments of the world create economic stimuls plans, the longer this recession will be. It'll worsen and eventually turn into a depression if this spending and borrowing persists.
Call your Senators now and tell them to oppose this new "stimulus" package in the Senate.
cwc1 says:
07:21 PM, 02/ 6/09
If we can't put a stop to socialism on steroids in the US, the whole world economy will remain in the funk that it's in. And then all the economically illiterate will wonder what the heck happened, even though it was their propaganda that the US should succumb to the failing economic policies of socialist nations which led to it. Now that we've elected a diehard socialist president and a congress who see this as an opportunity to inject themselves and their policies further into the free market, they've gotten their wish.
estreka says:
01:31 AM, 02/ 8/09
Flic, we must be twins separated at birth.