Toyota Profits Forecasted to be Triple that of GM
08-02-13, 10:55 AM
#16
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Now the roles have reversed, as the South Koreans are a victim of their own success with their currency appreciating, and they cannot stop it. Their heavy methods of keeping the currency undervalued have caught up with them, and the currency value is now balancing itself out on the world market.
The yen in the past few years was so high though, that the US dollar was actually undervalued compared to the yen. Now that the Japanese have been taking active steps to balance out the yen's value, Toyota's profits and that of many Japanese companies are back where they belong.
08-02-13, 10:55 AM
#17
Sure, but main reason is as Mike said few posts above, that Toyota and Honda got so lean, that they made profits on absurdly high Yen, so now that it is lower, they make even more profits.
08-02-13, 04:40 PM
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except that Toyota invests more into R&D than GM or any other automaker in the world... they simply sell cars at better prices than GM, earn higher operating margins and hence make more profits.
Why do they sell cars at higher prices? Because customers decided so.
Very simple.
Why do they sell cars at higher prices? Because customers decided so.
Very simple.
08-02-13, 09:23 PM
#21
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except that Toyota invests more into R&D than GM or any other automaker in the world... they simply sell cars at better prices than GM, earn higher operating margins and hence make more profits.
Why do they sell cars at higher prices? Because customers decided so.
Very simple.
Why do they sell cars at higher prices? Because customers decided so.
Very simple.
There's a reason that Toyota has the biggest cash reserves and market cap out of all automotive companies.
08-02-13, 10:13 PM
#22
They're also benefitting from some serious currency manipulation by the Japanese government. Nevertheless, I agree. Toyota's R&D budget is enourmous, and don't see them falling behind. They may have neglected the high performance/sports car niche, but let's face it, Toyota's bread and butter is Corollas and Camrys. As long as they sell the company will be fine. Putting a turbo v6 in the next IS is a low priority.
p.s. Lexus used to be the biggest profit driver for Toyota, dont know about these days, probably reaching those levels again... so while Yaris, Corolla and Camry are probably around 25% of their sales, it is most likely that 10% of their products (Lexus and Land Cruisers) generate large portion of their profits.
In any case, something interesting here - profit margins for Toyota were 10.8%... thats absurdly high.
08-03-13, 12:58 AM
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Huh? Where did you get that number from? The article in the 1st page of this thread states that Toyota profit margins for the previous fiscal year that ended several months ago was 4.4%. The current fiscal year only recently started, and profit margins are estimated at 6.5-7%.
08-03-13, 06:05 AM
#24
Huh? Where did you get that number from? The article in the 1st page of this thread states that Toyota profit margins for the previous fiscal year that ended several months ago was 4.4%. The current fiscal year only recently started, and profit margins are estimated at 6.5-7%.
Toyota's cost-cutting drive coupled with the yen's sudden reversal has become an advantage for its Japan-built exports. The auto giant's operating profit margin of 10.6% outstripped Nissan's 4.8% and Honda's 6.5% in the latest quarter.
08-03-13, 07:47 AM
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08-03-13, 12:34 PM
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i dont see hows that different from currency manipulation by US, Chinese or Korean governments? Yen used to 125 to USD, and USD used to be stronger than Euro by 5%-10% and now it is 30% weaker. Yen at 100 is a lot more realistic than at 78, and at the same time, current USD value is completely unrealistic where you have Eurozone in tatters and yet Euro is 30% stronger due to FED's work.
p.s. Lexus used to be the biggest profit driver for Toyota, dont know about these days, probably reaching those levels again... so while Yaris, Corolla and Camry are probably around 25% of their sales, it is most likely that 10% of their products (Lexus and Land Cruisers) generate large portion of their profits.
In any case, something interesting here - profit margins for Toyota were 10.8%... thats absurdly high.
p.s. Lexus used to be the biggest profit driver for Toyota, dont know about these days, probably reaching those levels again... so while Yaris, Corolla and Camry are probably around 25% of their sales, it is most likely that 10% of their products (Lexus and Land Cruisers) generate large portion of their profits.
In any case, something interesting here - profit margins for Toyota were 10.8%... thats absurdly high.
You are correct Lexus has accounted for over 50% of the profits.
08-03-13, 10:15 PM
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It seems as though that article is referring to operating margin.
Based on the previous fiscal year, Toyota's operating margin was 6.4%. So that's a nice increase, but operating margin is not the profit margin.
Their financial statement here confirms their profit margin for previous fiscal year was 4.4%. So it looks like it will be much higher now this fiscal year.
So based on the earlier article that they estimate Toyota will have a profit margin of 6.5-7% in this coming fiscal year, that makes sense.
http://finance.yahoo.com/q/ks?s=TM+Key+Statistics
08-03-13, 11:24 PM
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Toyota was releasing new powertrains left and right between 2003-2010 and were still making money hand over fist. The "lack of powertrain introductions" line doesn't work, especially since we know they ARE working on new powertrains.
08-03-13, 11:38 PM
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Yes. Toyota months ago opened a massive new research and development powertrain facility in Japan, so they are expanding their powertrain investment.
08-04-13, 06:55 AM
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p.s. Lexus used to be the biggest profit driver for Toyota, dont know about these days, probably reaching those levels again... so while Yaris, Corolla and Camry are probably around 25% of their sales, it is most likely that 10% of their products (Lexus and Land Cruisers) generate large portion of their profits.