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Toyota Slashes Growth Predictions

Toyota stock dropped 10% in Japan as it announced lower forecasts.  All models are affected particularly luxury  Lexus and of course our  own Tundra pickup to be made in San Antonio. As you read the article note how surprised Toyota is at all this.  Clearly their analysts failed to see the slowdown coming.

Last night in the cost class we discussed budgets.  I mentioned that the budget depends completely on projections. If the projections change it throws everything off.  Now imagine how these large manufacturing companies are pressed to cut back production with too many vehicles on the lots, ie, inventory turnover has ground to a halt.

Offering incentives will be of little help as those never really went away.  So more layoffs are ahead.

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2 responses to “Toyota Slashes Growth Predictions”

  1. Jordyn Scheide Avatar
    Jordyn Scheide

    That is interesting that Toyota is surprised at the slowdown. What did they really expect, Americans cant afford to buy vehicles. Consumers are just trying to get the staples they need not the luxuries. Its very scary how the economy has gone downhill fast.

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  2. Dennis Elam Avatar
    Dennis Elam

    toyota has a long term time horizon, it took years to conceive of the product, decide to build, build here and get ready, now the landscape has changed, that is why I put the article on the blog When I was here two years ago, I doubted the wisdom of toyota going into the big pickup business but even I would not have suggested the plant would close as soon as it opened which is what has happened.
    I doubt they can re tool the plant this soon to build something else, what to do? This is what happens when budget assumptions do not work out.
    dle

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