Toyota and SsangYong going backwards
December 23, 2008 by Karl Peskett
Perhaps even those strongest can and do suffer along with the rest. Toyota has announced at a press conference that it is forecasting its first-ever annual operating loss, while Korean manufacturer SsangYong says it cannot pay its employees.
Toyota president Katsuaki Watanabe said, “The company [Toyota] is facing an unprecedented crisis where it cannot avoid posting an operating deficit in this term. We will have to build on the company’s strengths to ensure profit.
“The company has decided to either delay or review almost all projects aimed at expanding production ability or building new plants,” Mr Watanabe said.
Unsurprising, given the announcement of the TRD performance brand being axed in Australia.
However further north, Ssangyong has also succumbed to the global credit crunch with a letter going out to all staff explaining a deficit of more than US$77 million.
“Due to lack of operating funds for December, it is impossible for the company to pay salaries any longer”, the letter said.
A mass restructure of the company, which is majority Chinese owned, has also taken place with staff being sacked and three divisions being merged into one. Interesting times ahead, to be sure.
Print it: 
Looks like SsangYong have been paying their designers in ’substances’ instead of money for a long time.
The Big T’s feelin’ the pain now. They’ve got a little too overconfident IMHO.
If only Dingo/TP wasn’t banned from this website…
Sigh…
Every one is feeling the pinch, only the strongest will survive. Recessions don’t last forever, consumer confidence will come back. In a way this is good, it means the market was heading in the wrong direction and now it is correcting itself because the high paid executives did not have the foresight to see the change coming. Like Bob Hawke said “This is the recession Australia had to have”
maybe it has merit.
Actually it was Paul Keating you can pin those comments to. But i guess its a sign of the times that no one is immune from a downturn, some big profits become smaller, some turn into losses, and those already losing money go bankrupt. I’m just glad i’m not an employee of Ssanyong at the moment.
^^
^^ 2.5 bullion loss this period is only 1/7 of thier last reported profit.
In Toyota’s eyes it is only One Dollar lost.
McKay^^^^
Ferrair is not feeling the pinch, the opposite, they are BOOMING full order book for 2 years and 8000 annaul production all accounted for.
They are going to be putting ON more staff and making a new production facility for the new California.
Super rich people dont do recession, only the wannabes!
Cheers
F-0
i think i’d much sooner be employed building toyota’s…
NASCAR and F1 must be looking like expensive hobbies right now.
It is going to be an interesting year. History dictates that as a general rule those that rise the fastest, earn the most and trample on whoever they can on the way, tend to fall the hardest when the momentum stops.
Ssang Yong are the ugliest cars on the planet.
SsangYong gone bust in the US?
I doubt Toyota would pull out of there motorsport completely. The dont want to sacrifice product placement and loose market share. That would hurt them more.
There F1 budget is less than what they forecast to loose this quater ;)
Article – “The company has decided to either delay or review almost all projects aimed at expanding production ability or building new plants,” Mr Watanabe said.
Which means tthat the new Toyo-Oz Hybrid could be “put on ice”… which could mean that it will never happen given that the next generation “Supra” was put on ice 5 or so years ago.
No more TuRDs?
realcars Says:
December 23rd, 2008 at 4:57 pm
What you mean Toyota is constipated????????
———————————–
Wheelnut Says:
December 23rd, 2008 at 4:54 pm
Interesting point, I wonder how Mr KRudd would view that?
Maybe as the bulk of the Govco money was for them to investigate building the Hy-Brid Camry here, they’ll be able to say that they investigated it, spent 35mil on market research and decided it wasn’t feasable. As for the state 35mil grant, it’d be a cse of “well we’re still here, it’s not our fault the market downturn has meant we have to put people of instead of hiring which is what you paid for….”
No loss if sung-wrong disappear…
Toyota relied heavily on the US new car market like Ford and GM and the US market is in the biggest decline.
VW isn’t feeling the pain as much due to being dominant in Europe and not US new vehicle sales.
No surprises there then, Toyota should get anymore criticism than others for losing money, it’s happening to most large manufacturers. TATA have been boning the UK Gov’ment for handouts again. I did read that Honda are halting car production for two minths in Swindon (UK). GM are asking workers to take a sabaticle on 3rd pay for nine months or lose you job.
I’m Mr average who has never bought new cars but i’m holding off buying anything newer than I have for the foreseeable future.
sorry “shouldn’t”.
Will sack the typist when she’s out from under the desk!!!
hahaha ,morning Cupid !Merry Christmas babe………….hope you got her knee pads for Christmas {dont you tell her I said that}! We all knew it was just a matter of time,and its not going to get better for them! Join the club Toyota!
Bigger they are the harder they fall,so whos interested in catching them?
Frontman – the really dumb thing about KRudds announcement in relation to the $35m grant to Toyota to Build the Hybrid Canary in Oz is that Toyota had plans to build it here anyway….
If Toyota don’t build the Hybrid here or even pull out of Australia – I din;t think the gummint will ask for or even get its money back.
A similar thing happened with Kodak back in the late 80s – the Gummint gave em millions of dollars for a new development – Kodak took the money spent it on overseas plants etc and 6 months later left Australia
If/when Toyota do crash they should be pretty safe…. according to the ANCrAP tests anyway.
So long as Toyota don’t take Subaru doen with them!
Hi Bav n Wheelnut – Mines not the Toyota dooner cover (as you lot call them) yet. See a dingo type persons made a comeback. What a sore loser.
Just seen the ne Toyota Avensis turn up at the Toyota dealer next door. Must say its pretty dull compared the new stuff coming out lately. Cqan’t wait to get me hand on the new Insignia
What i really wonder though is if Toyota is likely to post it’s first operating loss, then how will the other car companies fare? Toyota is amongst the best managed and most efficient car company in the world, so if they are struggling to make a profit, the whole car industry is likely to be in trouble.
Well well, first loss in 71yrs. Thats gotta hurt, but then again so is the rest of the car industry world (and many are far worse e.g. requiring bail-out) The problem is Toyota is a measuring stick for the other car makers. On the side a bit, Credit Suisse has analysed that because of this, the Bail-out for GM is sure to fail, as Toyota being the most efficient, cost saving out of the lot, cant get it right this time, how would a less capable maker who is already in the red will!.
I think all manufacturers must wake up and realise that NOBODY IS BUYING CARS PERIOD for the next 1 to 2 years especially in the US. They need to mitigate during this period and continually expect dwindling sales. Cost saving and cheap vehicles may be a bandaid to this until it all picks up again…
Agree Alan, as per following my post.
I agree with Cupid Stunt on Insignia………..how cares on following one car maker like 99% on here. I dont! The Insignia is mega hot!
NASCAR and F1 must be looking like expensive hobbies right now.
Golife – theres a report on “autoblog” that despite the downturn Toyota have committed themselves to Fl for least another 5 years.
Toyota F1 haven’t won a race or a championship over he last 7 years despite having the biggest budget in the paddock = $445m [US].
So if their F1 form contnuies the $2.5bn loss could be the first of many.
SsangYong makes FUGLY cars. They try too hard to be artistic lolx
it will take along time for toyota to crash! they have the largest cash reserve of any company or person in the world, not like the big 3 that are already on borrowed cash that they are asking for after a plane ride each in the companies private jets! thats like a homeless guy asking for money with his bmw parked next to him.
Toyota = bland boring crap like Spamry & Avalon (LOL what a flop that was). I couldnt care less if the whole company dissapeared.
I hate to say this to you Gayota but if Toyota leave Vic
so does most of our economy along with a heap of jobs that supply the industry as for the $35million Federal + State funds should not have been given to them because they where going to build this car anyway waste off money
Ignoring the kids comments here…
First if Toyota crumbles in Oz, so does the industry. Which means Victoria will most likely lose tens to hundreds of thousands of jobs (Production, manufacturing, sales, suppliers etc). People who lose their jobs…. not good… so Gayota… please go away with your senseless and ignorant posts.
Second…. Toyota has been often copied and studied by other companies in the way they do business… very well respected. So if they are posting a loss…. then its definitely a worry.
If they are losing profits… then very good chances are… so are everyone else in the business.