Toyota (TM): No Industry Recovery On The Horizon
Toyota (TM) says that the global automotive industry is facing two more lean years. It expects to lose more money this fiscal year than it did last and to run most of its factories at well below their capacity. Toyota…
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Toyota will survive another two years of hard time because of its balance sheet. The same may not be true or Ford (F), GM, and Chrysler, each of which may have to go to the federal government for assistance beyond what has already been given to Detroit.
The American auto companies have done a remarkable job of cutting costs and retooling balance sheets. They have given themselves the chance to make profits, even in a depressed car market. But, if the market remains at the historic lows where it is now, with domestic sales running at only 10 million vehicles a year, US companies may not be able to make money even with their much lower cost bases.
The government is still in the position where it cannot let the American car industry fail. There are too many jobs at stake and too much federal money already sunk into the industry.
Douglas A. McIntyre
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.