It’s official, arguably the best managed car company in the world is posting their first full year loss in 2008 due to economic downturn. The news first came out on 12/18 but the market really didn’t pay attention to the news yesterday.
The company expects to post an operating loss of roughly $1.66 billion for the fiscal year ending in March. That doesn’t seem to shocking, all thing considered, but if you compare the information to the previous year where Toyota had an operating profit of $25.2 billion, it’s obvious just how bad things are. That is a $27 billion dollar swing!
Let’s put Toyota’s loss into perspective and compare that to General Motors…
Since 2004 General Motors has not turned a profit from it’s North American auto division. As a matter of fact, General Motors has posted $72 Billion in net losses in that time.
It’s amazing that the we are providing funding to this type of operation. What I would like to know is how will the Federal Government (and Canada, too) govern the entire bailout process? They have done a poor job administering the funds to the Financial markets, why will the auto industry be any different?
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