Toyota and SsangYong going backwards
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.
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