How to Lose $7.7B in 4 Months
How does one company lose $7.7 Billion dollars in one quarter (4 months)? Simple, you sell cars during a recession. The Japanese car company posted this huge Q1 loss the other day, trumping GM’s $6B loss. This marks the worst financial loss for the company in its 71 years of business.
This perfect storm of money flushed down the drain was the combination of global sales, which were down 21.9% last year. The Yen also made strong advances against the U.S. Dollar, further hurting the Japanese automaker.
Things aren’t so bad for Toyota, according to analysts, who expect it to emerge from the automotive downturn with far less stress than its domestic competition. To help weather the downturn, Toyota has already laid off thousands of temporary workers worldwide, and it has also offered buyouts to American workers. Yes, layoffs of employees, always a positive for your buisiness! We hope Toyota makes it out of the red ok.
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