Toyota Motor Corp.: First operating loss in 71 years

The automotive industry is now official in a full blown recession, as Toyota Motor Corp., the world’s second-largest automaker, has forecast that they will have their first operating loss in 71 years. The news that demand for Toyota vehicles will promt investors to downgrade the company’s top-rated credit.

Toyota is now forecasting that the loss for the year ending March could total 150 billion yen ($1.7 billion), previous forecasts had been 600 billion yen operating profit. This cut in forecasts is now the second made by Toyota, the strength of the yen and the low demand for vehicles are to blame.

Toyota Motor Corp, have implemented a number of cost-cutting measures, these include cutting contract jobs and production, as well as cutting executive pay including board-members’ bonuses. None has helped the company as plummeting sales are getting worse month on month.

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