Friday, January 29, 2010

Excuse to Halt Production?

With worldwide auto sales plunging almost 50% from peak, one has to wonder when Toyota powers-down assembly lines for their most popular vehicles.

My hunch:

The only pedal they want off the metal is massive overproduction.

Would you rather halt production for a strangely lengthy recall, or permanently cut auto prices 50%, inline with the rest of the retail market? I think Toyota choose the former; incompetent management gambling that this will blow over with their subprime-era prices intact. Pretty dumb, considering Japan has been in a horrible deflationary Depression for 20 years.


  1. Well, I still think the US still has a little influence over japan.

    I thought this could be a bone for the US auto makers as well. Or, perhaps toyota thinks this move would best serve the entire auto industry.

    I find it hard to believe that one of the best car makers in the world couldn't solve this problem before announcing a sales halt.

    Most suspicious indeed.

  2. Ray LaHood says toyota owners should stop driving their cars...

    Sorry about that, but Ray didn't really mean it.



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