Toyota Stock Trading 14x's GM's Stock

[Guest Josh]

Nov. 18 (Bloomberg) -- Shares of Toyota Motor Corp., first traded in 1949, rose to a record on optimism U.S. sales will grow, making the company's market value more than 14 times larger than that of General Motors Corp., the world's biggest producer of vehicles.

Toyota shares, which have gained 41 percent this year, rose 4.4 percent to 5,890 yen at the close of trading in Tokyo, as a report yesterday showed U.S. factory production rose by the most in 17 months, which may spur demand.

Toyota is forecasting its 12th consecutive sales record in the U.S. this year and the company's fourth consecutive year of record profit. That contrasts with GM, which has been losing market share, prompting GM Chief Executive Rick Wagoner to reassure employees the Detroit-based carmaker has no plans to file for bankruptcy protection.

``Investors like Toyota due to its long-term strength,'' said Masayuki Kubota, who manages the equivalent of $8.5 billion of Japanese equities at Daiwa SB Investments Ltd., based in Tokyo. ``The automaker is preparing for future growth.''

Toyota, the world's largest automaker by market value, has said it plans to take 15 percent of the global auto market in the next decade, rising from about 12 percent now.

Bigger than Thailand

Based on today's market capitalization of $178.6 billion, Toyota has surpassed American International Group Inc. to become the world's 11th largest company. That compares with GM's market value of $12 billion. Toyota's market value is bigger than Thailand's annual gross domestic product of $164 billion, according to Bloomberg data.

The Toyota City, Japan-based company is adding or expanding factories in North America, Europe and Asia. Toyota plans to open a factory for Tundra pickups in San Antonio next year and a plant for the RAV4 sport-utility vehicle in Woodstock, Ontario, in 2008.

The automaker is also considering using Fuji Heavy Industries Ltd.'s Subaru assembly plant in Lafayette, Indiana and is studying ways to increase production at a pickup truck plant in Mexico.

GM shares dropped to their lowest level since 1987 yesterday, before recovering. Last week, GM said it would have to restate 2001 earnings because of accounting errors. A week before that, the company said its U.S. auto sales fell 26 percent in October. On Oct. 17, GM reported a $1.6 billion fourth-quarter loss, extending its longest streak without a profit since 1992.


Full Story: http://quote.bloomberg.com/apps/news?pid=1...AOMM&refer=home

My God it seems to me like Bloomberg is on a mission to berate General Motors and take any steam out of future models that they can. There's something wrong with that. Perhaps a "fire off" of emails could change their stance/thinking?

Something has to be done. Yes the company is in bad shape, yes they have legacy costs (before it was healthcare costs which have since been removed or significantly reduced) now it's the Toyota card. They'll try anything.

Not to mention that Toyota has more money than Thailands GDP....that's just sick. And it's with huge Government help from Japan. The company will be able to buy whatever they please in two years on this path!

When will U.S. lawmakers wise up as well as consumers?

[cmattson]

Well, perhaps GM should just pack up everything-in-Detroit and move to Tokyo. The dollar-yen exchange rate guarantee's gains upto 40% more profit. Combine that with GM's legacy costs and with GM's pension/healthcare costs & you'll quickly see the uneven playing field GM is competing on.

[FUTURE_OF_GM]

The lawmakers are too busy fucking everything else up. It might actually make it worse if the Gov't stepped in.

[post="44821"]<{POST_SNAPBACK}>[/post]

LMAO!!!!!! That's great...

Careful Josh, we wouldn't want fellow posters whining because you're pointing out media bias. :AH-HA_wink:

But yes, I agree....

This article (By just spitting out randomly useless facts and GM insults in almost bullet format) and Bloomberg in general seem to be reveling in the massive success that the media campaign against the domestics of the last 4 years has become.

Of course, the piece is from Tokyo... Which means it's a Japanese pride PUFF piece anyway.

[FUTURE_OF_GM]

Well, perhaps GM should just pack up everything-in-Detroit and move to Tokyo.  The dollar-yen exchange rate guarantee's gains upto 40% more profit.  Combine that with GM's legacy costs and with GM's pension/healthcare costs & you'll quickly see the uneven playing field GM is competing on.

[post="44858"]<{POST_SNAPBACK}>[/post]

Excellent post!!!

[KillFort]

Great post with a nice tad of sarcasm. We do know its fact that the Japanese Gov't and its people would never allow GM, let alone any other foreign company in. Ford tried building plants there once... Japan said "It's not in the best interest of our people. Sorry, go home Ford."

[Member55]

Great post with a nice tad of sarcasm.

We do know its fact that the Japanese Gov't and its people would never allow GM, let alone any other foreign company in.  Ford tried building plants there once... Japan said "It's not in the best interest of our people.  Sorry, go home Ford."

[post="45002"]<{POST_SNAPBACK}>[/post]

When was that?

[Member55]

Walmart is doing pretty good in Japan , as well as many other US companies. It's not impossible, you just have to try hard enough.

[regfootball]

PUFF PIECE or PUFFED RICE? they print all the stories about how great Toyota is, it still deosn't make me want a POS Camry, Solara, Prius, it didn't make me want a Sienna. Now I like the new IS and GS Lexus enough, but if push came to shove I would still get a Binner most likely. honestly, I think the media is building Toyota up, waiting for the big slip, and then watch them DESTROY them. It might take awhile, but they will. Right now they are supersizing the aura of them so the ripfest is that much more sensational. If you were a member of the press, wouldn't you think you could advance further in your career if a piece of your *cough* journalism had enough inertia to bring down perhaps our country's greatest industrial icons? (GM and Ford). Journalists, like *cough* architects, have a deep bleeding desire for recognition and affirmation......Like Frank Gehry, who figures we all need to have big curly metal facades shoved down our throats in some inteleectual fashion, the auto *cough* journalists have made it a cause to destroy our American car companies. Don't get me wrong, there are PLENTY of things to rip about GM, Ford, etc. But really, the bent these HACKS have taken it to in the last couple years has transcended reporting the news and now has gotten into CREATING the story or feeding it. And, Toyota knows what PR buttons to push. It may have been an expensive PR move to build the Prius, but it sure is paying off a lot more than having 20 more people on your PR staff would. Now the currency manipulation bit.....its becoming an issue. It used to be you could rile the public up into the protectionist mode, but society today is so hosed up that most folks don't care. They would never know why GM is at the currency disadvantage it is and such, and why it matters. People today have no sympathy towards their siblings or neighbors, much less their countrymen or business community. "What's in it for me" is the current line, and talk about yen or whatever doesn't enter their mind.

[rez7777]

Yen Is climbing. 119 Yen to the dollar. Edited November 19, 2005 by rez7777

[Guest Josh]

Maybe it's because I live in Detroit but the local news media is on a major smear campaign against GM & Ford. Chrysler is free because it's owned by a foreign company and is making money off it's RWD vehicles. But......General Motors makes money off of its RWD vehicles. Look at the Solstice. The company will see a profit soon, very soon if not already. Not only the Solstice, but all in all when I flick on Local 4 and see Rod Meloni or Guy Gordon talking Auto's I can't help but laugh at their sheer idiocy on the entire subject. I sometimes wonder who writes their pieces. The local media here has no idea how severe of situations we are facing. No idea. None at all. Just look at the steel companies and times that by 10.

[Croc]

GM will not make a profit on the Solstice any time soon. Kappa is a platform that will most likely NOT create profit for the company. If they break even they will be in good shape. All of the markup on Solstice goes to the dealer, not GM.

[Northstar]

I think the development cost for Kappa was pretty cheap, like $250 million because it was developed so much on computers. They won't make much money, but unlike lots of niche vehicles, I think they will at least pull even by the time it's all said and done.

[Snate]

Toyota is a company that makes a lot of money not making cars people want...but making mediocre cars and convincing people that they want them. It's been a very long time since Toyota has really had a class leading mainstream vehicle.

[Guest gmrebirth]

Toyota is a company that makes a lot of money not making cars people want...but making mediocre cars and convincing people that they want them.  It's been a very long time since Toyota has really had a class leading mainstream vehicle.

[post="45340"]<{POST_SNAPBACK}>[/post]

Beautiful flawed logic ... I couldn't have said it better myself. No wait ... I'm not THAT biased and narrow-minded.

What are you smoking? Making a lot of money on cars people don't want?

You're telling me people don't want quiet, comfortable, reliable, feature rich cars, that have attention to detail? You're telling me people don't want cars with good resale value?

Woah, I guess I must have been living under a rock ... and I guess it was just media bias that GM was making crappy vehicles in the 80s and 90s, only making good vehicles for the last few years :rolleyes:

[Croc]

I think the development cost for Kappa was pretty cheap, like $250 million because it was developed so much on computers. They won't make much money, but unlike lots of niche vehicles, I think they will at least pull even by the time it's all said and done.

[post="45327"]<{POST_SNAPBACK}>[/post]

I didn't say Kappa was expensive to develop, but we are looking at 8 year product lifecycles to break even, unless more variants are made to spread out the costs...

[razoredge]

PUFF PIECE or PUFFED RICE?

they print all the stories about how great Toyota is, it still deosn't make me want a POS Camry, Solara, Prius, it didn't make me want a Sienna.  Now I like the new IS and GS Lexus enough, but if push came to shove I would still get a Binner most likely.

honestly, I think the media is building Toyota up, waiting for the big slip, and then watch them DESTROY them.  It might take awhile, but they will.  Right now they are supersizing the aura of them so the ripfest is that much more sensational.

If you were a member of the press, wouldn't you think you could advance further in your career if a piece of your *cough* journalism had enough inertia to bring down perhaps our country's greatest industrial icons?  (GM and Ford).  Journalists, like *cough* architects, have a deep bleeding desire for recognition and affirmation......Like Frank Gehry, who figures we all need to have big curly metal facades shoved down our throats in some inteleectual fashion, the auto *cough* journalists have made it a cause to destroy our American car companies.  Don't get me wrong, there are PLENTY of things to rip about GM, Ford, etc.  But really, the bent these HACKS have taken it to in the last couple years has transcended reporting the news and now has gotten into CREATING the story or feeding it.

And, Toyota knows what PR buttons to push.  It may have been an expensive PR move to build the Prius, but it sure is paying off a lot more than having 20 more people on your PR staff would.

Now the currency manipulation bit.....its becoming an issue.  It used to be you could rile the public up into the protectionist mode, but society today is so hosed up that most folks don't care.  They would never know why GM is at the currency disadvantage it is and such, and why it matters.  People today have no sympathy towards their siblings or neighbors, much less their countrymen or business community.  "What's in it for me" is the current line, and talk about yen or whatever doesn't enter their mind.

[post="45093"]<{POST_SNAPBACK}>[/post]

OK, so lets starts our own publication, where we attack and bash the common media into the ground. Some of the best writers exist right here as far as Im concerned. Then can I please have a small section on the back page where I tear everybody and everything a new sphinkter for no apparent reason. :lol:

Sadly the sheep would flock to the news stands to get the next ripe issue and we would all retire filthy stinkin rich :P

Then I woke up

:CG_all: