Toyota Sales Down

Toyota Motor Corp, the world's biggest automaker, has forecast a deeper-than-expected annual loss of $8.6 billion dollars. Sales are continuing to slide keeping dozens of the companies factories underutilized.

The Japanese giant posted its first-ever consolidated operating loss last year after a record profit the year before.

This meant a cut in its annual dividend for the first time since at least 1994.

The global downturn that has battered demand for cars has hit Toyota badly. The company had gone from rapid expansion to overcapacity almost overnight.

Toyota has been especially vulnerable due to its exposure to the United States and Japan.

[Katsuaki Watanabe, CEO, Toyota Motor Corp]:
"The financial crisis, which began with the U.S. subprime problem, has in the latter half of the fiscal year become more and more severe. And the economic crisis spread not only to Europe but also to resource producing nations and developing nations and the automobile industry saw a global contraction."

While the entire industry is caught in the slump, manufacturers are selling cars that have piled up in stockyards.

Toyota says it expects its global sales to fall about 14 percent to $65 million U.S. dollars in 2009 to 2010.

The company is hoping the launch later this year of the third-generation Prius will help turn around some of its sales slide and production cuts.

Category:

Autos & Vehicles

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[bmwmegtr]

ah thats so sad who givs a shit you fuckers go and cry over that when american car companies are going down the tube as i tyoe this