Toyota Tanks Too

Toyota announced a one point eight billion dollar loss in the last quarter. After finally vanquishing the American automakers to become the largest car seller in the world, Toyota has fallen on the same hard times afflicting most other auto producers but bargain-brand Hyundai and a few other foreign manufacturers. Unlike the US makers notorious for prolonged quality problems, Toyota has had an outstanding track record. No exploding Pintos or unsafe at any speeds Corvairs have rolled off of Toyota's assembly lines. Toyota does not face the massive institutional legacy costs of their flagging American competitors. Yet, Toyota is facing its own troubles. Even without the impediment of high union wages and restrictive work rules, the Japanese megalith is suffering. Traditionally, Toyotas have held their values better than most other brands, but in these hard times, Toyota has been forced to discount its new models more than it typically has had to and sooner, consequently devaluing its used cars which hurts owners who previously could be relatively assured of high resale value. The recession is essentially worldwide and even stalwarts will be falling.