madoka

No, the computer analogy is not appropriate here. It's one thing for a CPU to dramatically reduce in price over time, it's another thing for a body panel or plastic trim to decrease 30%.

pagemaster

This is really sad to hear. Toyota obviously is making cars that cut way into their profit margins and they can't sell them for the premium the once asked for. They actually really do deserve the difficult times that they are in because they have made some really strange decisions for a company that once played things conservative.

It really is hard to justify things like the Lexus LFA where Toyota will lose money with everyone they sell. Or why did Toyota build two Tundra plants yet they sell about half as many Tundras as they did in 2000, and is there really a need for three engine option when the Tundra can clearly get by on perhaps two. Toyota no longer builds the benchmark sedan (Camry) which everyone wants to copy. The American mid sizes are as good and in some cases better than the Camry. Lastly, why does Toyota make two giant full sizes Suvs, one built in Japan and the other built in USA....American full size SUVS are dead...it is time to kill the Sequoia. Lastly, Scion was major fail and Toyota should fold them now....Toyota is about 4 years late to the game while Hyundai has the Genesis coupe and Nissan has the 350z...I remember the days when Toyota had the Supra, Celica, MR2 Spyder..

Toyota used to be all about getting more for less. Being a solid value. Toyotas used to be easy to maintain, easy to drive and easy to live with....I can't believe that Toyota has runaway Lexus's and Avalon;s thanks to faulty floormats or accelerators..(even Toyota doesn't know what is causing it)

Toyota did one good thing this year and that was the closing of the Nummi plant in Cali. It makes to build the Tacoma in the Tundra plant as there is all this wasted capacity there.

Toyota also did the Canada Rav4 transplant correctly. Toyota is make a killing on the popular Rav4 by now building it in North America. Just this week, Toyota announced another shift and overtime for the plant. Why not build the ES350 in NA and make more profit on every one sold....cost cutting is not the way to go...rant/over

LexFather

Its called expansion. Its called an old CEO. Its called entering new markets and learning from first hand experience. Its called making mistakes and learning from them.

Some of you make it seem we should all sell our Toyota stock, our Lexus vehicles and prepare to see the brand die.

Its amazing to point out all the negatives and see none of the positives. Its also amazing to not point out Toyota acknowledged the quality problem back in 2006 and making amends for it. This is not an overnight process.

You fail to mention how Toyota invested in the Carbon Fiber process in the LFA to learn more about it and to hopefully implement the process in other, cheaper cars to save weight. What loses money now can become the next big thing (cough cough the PRIUS) EVERYONE is trying to figure out how to mass produce CF at a cheaper price.

Then you make up lies saying Toyota doesn't know what is causing the floormat issue. When the FACTS are the wrong floormat was in the ES installed by the dealer and Toyota was never found at fault for faulty acceleration.

However please, continue to ring a death bell no one hears.

I8ABMR

I hope the quality control guys are on their toes

-J-P-L-

I have to disagree with most of this.

The LFA: why do people say the LFA is foolish from the world's largest automaker while there's a bunch of small company's that build in that price class? Halo cars such as this bring the company up even if they don't make a profit. Yet when companies decide not to build such sports cars, they get criticized. Think Acura with its NSX. They make the financial decision to not lose money on bringing it back and they get bashed.

As far as investments in Tundra and Sequoia, remember that it takes years to plan and bring to light. These models and factories were green lighted long before the SUV and big truck landscape shifted with the rise of gas prices an the fall of the economy. Fact is, the market was on fire when Toyota began the development of these vehicles. Toyota was right to expect the new Tundra to very well. It's finally as big (or bigger) than the American trucks and IMO better (although I also love the new RAM). They needed to be prepared for the potential demand. There's no way to predict exact sales though.

People criticize the Camry as lacking, but look at the sales. They make even Accord sales look slow now and everyone else's look pathetic. Yeah, part of it is the CAMRY name, but most buy it because it's still a great all around practical car that fit's their wants and needs.

spwolf

who exactly was talking about interior plastic being 30% cheaper?

spwolf

In fact, building Rav4 locally is another example of cost cutting... you do understand that, right?

bruce van

My brother had been a Toyota fan and only bought Toyotas. His last couple of cars, including the Avalon, have been a disappointment due to quality. He's since said he would no be buying any more Toyota products.

People don't like to get less quality with every progress product cycle. You're supposed to get more. It seems to be working really well for Hyundai.

bitkahuna

iTrader: (20)

sometimes a design can eliminate parts - say a new body panel design was strong enough to eliminate the need for a reinforcing bar - that saves cost on parts AND manufacturing, so it IS possible.

not easy, but possible.

trickier places to save money are glass, rubber (tires), wheels, safety requirements, and yes, 'obvious' cosmetic details. i think most toyota interiors right now completely suck. the venza's not bad though.

MR_F1

There was a news report recently about a new glass process for Toyota right?

madoka

Again, the examples you cited were:

1. Blu Ray players dropping 700%
2. PCs dropping 800%

And again, I'll maintain your analogy is wrong. While such decreases are expected in tech, those kind of sudden drops will never happen in the auto industry. I spent a summer writing an article on the auto part industry for a major bank's investment group and IMHO, even 30% is borderline fantasy without severe decreases in quality/performance/reliability.

MR_F1

What about making the technology to manufacture new parts cheaper? Same effect.

I understand what you a re trying to say, but they are not exactly wrong either. Making parts cheaper is not just about making raw material cheaper, or using less of it.

madoka

Look, I'm not saying that gradual decreases won't happen over time. I am simply pointing out that the computer/tech analogy is not applicable to the auto industry. It's just common sense.

Haven't you guys ever heard the joke about if the auto industry kept up with technology like the computer industry has, we would all be driving $25.00 cars with V-32 engines that got 1,000 miles to the gallon?

dunnojack

i hope they cost cut the right parts. cuz it could come around and bite them in the *** for repairs.

.... or bad word of mouth if the parts fail right after the warranty expires.

and if they do cut cost, i hope they decrease the price of oem replacement parts accordingly.

spwolf

late 90's and early 2000's toyotas are ones with most issues... from MZ to ZZ engines ;-). You are right about paint, but thats getting better from early 2000's too.