Do You Actually Believe Toyota??

[Texas Contrarian]

Originally Posted by MrGiz

Has anyone else noticed how the news has turned against Toyota ever since the US Gov't took over GM and essentially, became a competitor?

Isn't that queer..... hmmmm...

Well, an experienced investor often makes an effort to talk his book!

But seriously, it is tough to go up against an entity that for all intents and purposes is controlled by the U.S. government.

In the 1970s, a college friend of mine went to work for a midsized family-owned company. As the business grew, he enjoyed several promotions -- eventually landing one of the firm's top two or three posts. By the early '90s, he felt he should be a candidate for the top job, as the majority owner planned to retire soon.

But there was one slight problem. Another candidate, considered less hard-working and less qualified by my friend, had the inside track. Dad was the boss!

Just as it's hard to land the top job when the founder's son works for the company, it's tough to compete against a manufacturer virtually owned by the government -- especially when the huge conglomerate that "owns" your competitor controls other departments capable of wielding their influence to highlight issues easily saleable as safety concerns and legal vulnerabilities.

[Marcus Aurelius]

I would think you were talking about Cargil but they are not midsized.

[atlcomedy]

Originally Posted by MrGiz

I have no research to back-up what I'm getting ready to say... but...

Has anyone else noticed how the news has turned against Toyota ever since the US Gov't took over GM and essentially, became a competitor?

Isn't that queer..... hmmmm...

Giz

Originally Posted by CaptainMidnight

Well, an experienced investor often makes an effort to talk his book!

But seriously, it is tough to go up against an entity that for all intents and purposes is controlled by the U.S. government.

.

Giz, I don't know how related the two events are...&
Midnight, I agree...

...but in this case, I think the bigger factor is more pragmatic: championing consumer rights and product safety is always good politics. The fact that the culprit is a big company, and foreign to boot, is just icing on the cake:mf_afro :

[SofaKingFun]

Originally Posted by charlestudor2005

Toyota has been running this ad (http://www.youtube.com/watch?v=9TkL5xydbd0) on TV for some time now.

Now, Toyota makes the statement, "we're currently spending over $1 million per hour to enhance the technology and safety of our vehicles."

Now, I find that statement kind of hard to believe.

For instance, in FY 2009, Toyota's gross income was $20.68 Billion. At that "over $1 million" per hour rate, Toyota is spending 40% of gross income on tech/safety.

Are these credible figures?

I absolutely believe the figures in Toyota's statement.

The statement is somewhat misleading in that the $1M/hour isn't going entirely towards R&D

The key part of that statement is; "to enhance the technology and safety of our vehicles".

Remember that a large part of the "safety and technological enhancement" expenditure is going directly to repair their recalled vehicles - which would have to be considered a "safety enhancement", wouldn't it?

Toyota is having to pay to their line mechanics to repair the vehicles, the parts suppliers, shipping expenses, etc. so it's a fairly substantial ticket that they're having to eat. So yeah, I believe it.

[coven]

Originally Posted by SofaKingFun

I absolutely believe the figures in Toyota's statement.

The statement is somewhat misleading in that the $1M/hour isn't going entirely towards R&D

The key part of that statement is; "to enhance the technology and safety of our vehicles".

Remember that a large part of the "safety and technological enhancement" expenditure is going directly to repair their recalled vehicles - which would have to be considered a "safety enhancement", wouldn't it?

Toyota is having to pay to their line mechanics to repair the vehicles, the parts suppliers, shipping expenses, etc. so it's a fairly substantial ticket that they're having to eat. So yeah, I believe it.

Not to mention the legal bills for the incoming lawsuits!

C

[charlestudor2005]

Originally Posted by SofaKingFun

I absolutely believe the figures in Toyota's statement.

The statement is somewhat misleading in that the $1M/hour isn't going entirely towards R&D

The key part of that statement is; "to enhance the technology and safety of our vehicles".

Remember that a large part of the "safety and technological enhancement" expenditure is going directly to repair their recalled vehicles - which would have to be considered a "safety enhancement", wouldn't it?

Toyota is having to pay to their line mechanics to repair the vehicles, the parts suppliers, shipping expenses, etc. so it's a fairly substantial ticket that they're having to eat. So yeah, I believe it.

Originally Posted by coventricity

Not to mention the legal bills for the incoming lawsuits!

C

Spindoctoring at its slickest (or sleeziest).