Toyota gambles with Fire Sale Prices over piling inventory!!!

[john]

Looks like inventory is piling up, and a good way of doing a fire sale
is Low Lease Rates to riskier customers (sub-prime?) instead of Cash
Incentives.

"For Toyota, the deal could be a financial disaster. To keep customers
coming to its showrooms amid a series of embarrassing recalls, Toyota
has been offering some of its best leasing terms in years.

And now it's offering leases to customers who are greater credit
risks. CNW Research noted in a report that one Toyota program requires
a credit score of "only 660 to qualify." That's seen as the dividing
line between good and poor credit.

"Toyota was in a corner. They had the recalls, and their inventory was
climbing," said Matt Traylen, chief economist for Automotive Lease
Group, or ALG, which analyzes residual and depreciation data.

Full article at:
http://www.freep.com/article/20100801/BUSINESS01/8010457/1331/business01/Toyota-gambles-on-future-with-low-lease-offers

[hls]

Post by john
Looks like inventory is piling up, and a good way of doing a fire sale
is Low Lease Rates to riskier customers (sub-prime?) instead of Cash
Incentives.

Lots of companies are feeling a crunch because people dont have jobs
like they once had. Some are still offering 0% interest loans for up to
6 years, just to try to move some inventory.

I dont think Toyota is still suffering very much from the recall problem.

If people have money to spend, they will continue to buy some cars, but
maybe not with the reckless abandon they did a few years ago.

[ACAR]

Post by john
Looks like inventory is piling up, and a good way of doing a fire sale
is Low Lease Rates to riskier customers (sub-prime?) instead of Cash
Incentives.
"For Toyota, the deal could be a financial disaster. snip

"May 11, 2010, 3:16 a.m. EDT TOKYO (MarketWatch) -- Toyota Motor Corp.
Tuesday said it swung to a net profit of 209.46 billion yen ($2.26
billion) in the fiscal year which ended in March, reversing a year-ago
loss, and predicted the current year would also be more profitable
despite its recent plague of recall woes."

A $2.26B net profit disaster? Heh.

[Arthur Shagnasty]

Post by ACAR

Post by john
Looks like inventory is piling up, and a good way of doing a fire sale
is Low Lease Rates to riskier customers (sub-prime?) instead of Cash
Incentives.
"For Toyota, the deal could be a financial disaster. snip

"May 11, 2010, 3:16 a.m. EDT TOKYO (MarketWatch) -- Toyota Motor Corp.
Tuesday said it swung to a net profit of 209.46 billion yen ($2.26
billion) in the fiscal year which ended in March, reversing a year-ago
loss, and predicted the current year would also be more profitable
despite its recent plague of recall woes."
A $2.26B net profit disaster? Heh.

john counted his earnings for the year 2009. A $2.26 net profit disaster!
LOL!