Toyota’s Credit Rating Cut by Moody’s
Tim Esterdahl | Jan 02, 2012 | Comments 18
Moody’s Investors Service has cut the credit outlook rating for Toyota Motor Corporation and its affiliates, citing dependence on the yen currency, low sales, and a drop in stock value for 2011. This credit outlook reduction dropped Toyota from a stable status to a negative one, and may mean that the company’s credit rating will be reduced if more measures are not implemented to increase sales and profits for the next fiscal year.
Moody's Investors Service has cut Toyota's Credit Rating due to a variety of factors.
Moody’s Investors Service is concerned that the rise of the yen will hamper Toyota’s profits and reduce its exports to other countries. The increased value of the Japanese currency means that production costs are higher, thus reducing profit margins for sales globally. This concern pushed Toyota to reduce its profit forecast by over half through the fiscal year ending in March. Toyota is trying to combat these problems by increasing overseas output to decrease its dependence on the yen market. The company says it is also focusing on using more local components for manufacture to reduce costs.
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Filed Under: Auto News
What does this mean better deal on cars and trucks? Or no room for negotiation?ive always been A ford man I’ve been wanting a new tundra since 06 I guess it’s time…
Been waiting and waiting until 3,000 rebate on 2011 or 2012 tundras. Have not seen them at all in my region. I got 3500 rebate on my former 2007 tundra DC when they first came out and 3,000 rebate on my 2010 tundra 2 1/2 years ago. Maybe soon I will see 3K on a 2012 tundra DC?? Dealer has been trying to get me to come in and negotiate trade in (own salsa red color no longer made now lighter barcelona red not too fond of-too light of a red) but tell him to call me when rebates go up to 3K but hasn’t happened in over 2 years now, what’s up? Saw the barcelona red in the showroom floor today and think it is way too light of a red vs. my darker salsa red. I wish nautical blue wasn’t almost black except in very bright sunlight and perfectly clean, or I would get the dark blue, but too dark in my opinion. Wish toyota would lighten the dark blue a shade or two like they did the salsa red. Nautical blue has been on the current tundra I think since 2007 and is long overdue to be freshened up/lighter since cannot go any darker without being black looking. Sorry to rant, but looking to trade it is just that toyota rebates are not that high anymore and dealers are not dealing like they use to do either.
Mk,it’s hard to find trucks with a particular color here in ohio,or even with what options you want on it..it seems like anymore you have to pay extra for options,like the tow pkg.I want to say it was standard on all the trucks…I’ve been wanting a Rock Warrior for about a year and went last Saturday and test drove one and love the truck..just one problem it didnt have steering wheel controls for the radio or xm radio, I ask the sales guy if it could be added he said yes but it would cost a lot for it…long story short I think they should put all the options like: xm radio,steering wheel controls,and bed rails on all the Rock Warriors.if people don’t want a particular option either order it or buy a lesser truck…I know some people will say the same with the limited and platinum trucks to buy one of those if you want all that stuff but I don’t need a $50,000 truck,I work on a tree farm,I want something nice but rugged…also it didn’t have the cold weather pkg. which I thought was standard on all tundra here up north…just a weird combination of truck…sorry for my rant…I’ve been a ford man forever but it’s time for a change and I’ll buy a Toyota next…end of story!,,,
agree Shane, I wanted a power sliding rear window for my DC and could not get it without adding the overpriced and basically worthless, rougher riding, TRD off road package. My former 2007 tundra had the TRD package and it is definitely choppier ride on the road without adding any value especially since the tires on the TRD were worse than what my 2010 non-TRD DC tundra are now. What does having a pwr. sliding rear window in the back of the DC tundra have to do with having a TRD off road package – NOTHING and makes no sense! It is getting tougher with Toyota I agree to find the Tundra with options you want and will use without adding 1,000’s to the price tag which I will not do ever. Not sure, but I heard the SR5 pkg. is no longer in 2012 tundra’s only base and limited of which I have SR5 pkg. which has what I want like radio controls (must have my 2007 did not have and will not live without anymore since use daily). So, do most base tundra’s since will not pay for the overpriced limited pkg. have steering wheel radio controls? Seems Toyota is shooting themselves in the foot with all or nothing pkgs. That is the one thing I like about buying Chevy silverado’s where the options I want like power driver’s seat and steering wheel radio controls without leather seats and other fancier options is readily available, but the engine and tranny in the tundra’s rule.
I know what you mean about the controls I thought about buying a truck that didn’t have it. then my wife said to wait and get one with all the options I wanted,because her car has the controls on the steering wheel and every time I drive her and then drive mine always say I wish my truck had that…but It looks like we’re going to have to pay…I told the salesman you would think for a $40,000 truck would have the xm,steer controls and cold weather pkg.and he told me well you get other goody’s…so that night he found a white one but not a grey..and I told him I didn’t want it because it wasn’t grey,but I could order one for$300 and maybe get the options I want…I was like what the hell…so I’m still waiting to find the right truck for me…MK,do you know of any tundra websites that have just for tundra’s?
Shane, not sure on websites, but wait and find the right color and options you want. I know ordering a tundra from a dealer is not even allowed at the few toyota dealers around here and they won’t even do it. They say take what is on the lot or let me know what you want and they will get it for me, at a cost of course for a dealer trade most wanting 500 bucks. I took the initiative on my current 2010 tundra and found MY truck with My options at a dealer 75 miles away and had to make 3 trips in order to get the sale finalized since local dealer wanted 500 bucks to go get it for me. I told them NO, only 200 bucks is all I would give them lucky to get that at all from me and they said no, policy is 500 bucks. I walked away and got it myself from that dealer. The internet searching dealer inventory and calling around to several dealers has paid off for me saving me over 2 grand now the last 2 vehicles bought in the past 2 years. It may be time consuming searching the internet, but sure beats wasting gas and time driving all over the place just to look at a vehicle.
I’ve been looking on the Internet but it seems that every time I call some where they don’t have it or the price is wrong,and it’s not the right truck…I told them they need to update there website and said they would it has been 3weeks now still no changes or photos which I don’t think is right..one dealer had a Rock Warrior for $25,995 so I called and asked if this was true the guy said yes I told him I would be there the next day,so drove there and get this I went to the lady up front asked for so&so she said one moment so this guy which I thought was the guy I talked to on the phone comes up and we start talking about the truck..well come to find out the guy I talked to on the phone got fired the day before because of the internet,he enter the wrong prices into the system,so I asked if they would still sell it to me for that price…Sorry we can’t do that…so I won’t be dealing with that dealer…
should have printed the internet price off and went in you would think that would’ve given you some ammunition to get a much better price since that would be false advertising in my book. Some salesman I have dealt with in buying over 20 new vehicles the past 20+ years are idiots to say the least. They know no more about the products they sell than my 10 year old does which is not much which upsets me they got hired to do a job and learn the products they sell yet get paid to do nothing but B.S. and do not know the facts and figures of all products they sell. I’ve educated more salesman than some sales mgrs. have.
You know I’ve been a ford man all my life and still like fords never had any problems with them..I’ve heard good thing about toyota’s,thats why I want to switch..but anyway my wife and I when we lived in Florida went to a ford dealer to buy a mustang and started talking to the salesman he didn’t know a thing about the car,he didnt know how many HP it had or nothing that’s why I do my homework before,so I know what I want how much it should cost..I’m 30yrs old now back then I was’t as prepared as now…I just don’t like the direction toyota’s going I think they need to keep there customers happy…like not have the sr5 this year I liked that pkg.If I couldn’t get what I wanted on a Rock Warrior I would have bought that,but I’m not buying a Limited Ed. I can’t see paying $50,000 for a pickup…
Shane – It probably doesn’t mean much of anything to us consumers. Toyota’s lower credit rating makes it harder for them to leverage, but it’s not like they’re strapped for cash.
mk – Now that Toyota isn’t trying to push volume on the Tundra, the big rebates are probably gone. Toyota has spent a lot of time and energy trying to maximize production efficiency while at the same time making sure that dealers keep just barely enough Tundras in stock to meet demand.
Rebates are undesirable from Toyota’s perspective because they hurt resale value and lease penetration. In the long run, Toyota is better off if they don’t offer big rebates on any of their products.
Shane – Wild story on the guy that “got fired” – any chance that was a BS story designed to explain away the fact they told you a lie?
Anyways, thanks for all the comments on the site. Welcome!
Jason,I’ve talking with the Internet salesman about a truck I’ve been looking for and it sounds like he want to give me a good price on a Rock warrior..he said he found one 100miles away,so I asked what did they charged for that,and he said $250 but he was like I’ll just charge you $100 so I don’t know if he’s just bsing me or what and I asked if they were firm on the sticker price he said I’ll give you a good deal…but not once did he ask if we wanted to go inside and put some numbers together.so I don’t know we’ll see I’m going Saturday I’ll let you guys know…for the one that got fired it might be BS I don’t know I won’t be going to that dealer…
good luck when they say ‘come on and and I will get you a good deal’. 100 bucks to go get it I could deal with since it would cost almost that by you driving to that dealer 2-3 times like I did to go get mine when my local dealer wanted 500 bucks-a joke. That dealer I eventually bought it from 100 miles or so away said same thing, come on in and I will get you the best deal. They first started off 1,000 above invoice and I told them on phone dealer cost/invoice period or no sale. They came back 500 above dealer invoice, I said NO, only dealer invoice price. After B.S.ing for over 1 hour they came down to dealer invoice and told me they never have done this ever in the past. I told them I never have gone above dealer invoice so take it or leave it. They took it especially I think since they had 2 identical salsa red DC tundras exactly same msrp as mine so they had 1 left identical to mine at the time. Now though, the 3K in rebates I got on my 2010 tundra are no where to be seen and the selection of 2012’s on all toyota dealer’s lots are slim to nonexistent which makes me think they will NOT go down to dealer invoice any longer since none to be had to sell which sucks for me unlike all chevy and ford dealers having 100’s of identical trucks to pick from with 5-6K in rebates. I can see never 4-5K in rebates on tundras, but 3k should be expected from time to time.
Down here a Platinum is $46k sticker when said and done. Funny thing they tried to offer me $25 for my truck. I know it’s a gimmic to get you talking with them.
Shane – Good luck! Hopefully by now you’re driving a new truck…
mk – It’s pretty tough to buy at invoice, especially now that Toyota has brought days supply in line. Most of the dealers I know are selling the Tundras they have almost as soon as they get them. They’re not getting sticker or anything, but a few hundred over invoice.
Frankly, a few hundred over invoice is fair. They should be able to make a little bit, and even though invoice includes holdback, holdback is barely enough to cover expenses.
Jason- I got a 2012 Toyota tundra rock warrior yesterday..and love it. The sticker was$39,442 he came down to $36,500 with tax,title and a little bit going over on my truck out the door price of $38,600.
Shane – Sweet! Congrats!!
Congrats Shane…….
Ive been away for awhile guys,but I forgot to say it was a awesome birthday present from my wife…