Toyota expects first annual loss

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} You know thereÔÇÖs a recession in the world economy when Toyota, the model of efficiency in the automotive industry, forecasts its first annual loss in 71 years of trading.   The worldÔÇÖs largest automaker has said it expects to make a loss of ┬ú1.1billion in yearly operating profits from its core operations.   Toyota's president Katsuaki Watanabe said that the company now expected to sell 8.96 million vehicles around the world this year, down four percent from the previous year. He did not give a target figure for 2009.   Toyota said in a statement that it was cutting its profits forecast because of the soaring yen "as well as a review of sales plans following a faster than expected contraction of the auto market".   All Japanese automakers have been hit by a slump in sales in their key overseas markets, including the US. Honda last week cut its annual profit forecast by 67 percent.   With the US dollar falling to a 13-year low against the yen, the Japanese have seen their overseas earnings evaporate, and the Japanese domestic auto market has been in decline for several years.   The announcement does not mean that Toyota, whose eponymous production system has become the lean manufacturing bible for manufacturers all over the world, has become any less efficient, innovative or lean. Toyota has not changed, but the world has.   Executives in every industry must be wondering to themselves, if Toyota cannot make a profit, what chance does anybody else have?   Bring on the stimulus packages.   *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *