Toyota and Honda getting hit too

Wagner · #1 12-22-2008, 12:04 PM

http://money.cnn.com/2008/12/22/news...ion=2008122210

Quote:

NEW YORK (CNNMoney.com) -- Japanese auto giant Toyota said Monday that it would suffer an operating loss due to plummeting auto sales and a strong local currency.

About 30 minutes after the market closed in Tokyo, Toyota said it expected to lose approximately $1.5 billion to $1.7 billion this fiscal year. Toyota reports earnings on a fiscal calendar beginning in April.

Falling car sales in the United States and abroad have been taking a major toll on automakers.

Toyota will sell about 1.4 million fewer vehicles globally this fiscal year -- about 7.5 million vehicles in all -- than it did last year. The company's North American sales will be particularly hard-hit, dropping by 250,000 units, according to the automaker.

Toyota reports results based on a fiscal year calendar beginning in April.

Toyota (TM) said Monday that it expected worldwide auto sales in calendar year 2008 to decline 4%.

On Friday, the Bush administration said it would lend $13.4 billion to General Motors (GM, Fortune 500) and Chrysler to keep them out of bankruptcy.

Japanese exports have been hit hard. The rising value of the yen sent Japan's trade deficit shooting up to $2.5 billion in November, according to the Japanese government. Exports fell 26% on a month-over-month basis.

Toyota's main Japanese rival, Honda (HMC), reduced 2009 earnings estimates and cut its forecast for 2008 last week, saying there was "no prospect for recovery" as auto sales and the economy continue to deteriorate.