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Toyota Braces for Bad 2009 Fiscal Year

As we reported late last week, Toyota's financial problems seem to have only begun. Faced with the biggest downfall in sales since 1950 for the fiscal year that ended in March, Toyota was forced into recalling Yoshi inaba from retirement to lend a hand on the manufacturer's biggest market, the US.

Now the problems have extended to worldwide, as the company is preparing to face its second consecutive annual loss for the fiscal year that started on April 1, due to both the economic crisis and the ever stronger yen, according to a report by Nikkei.

Toyota's losses for the current fiscal year are estimated to be at around 500 billion yen ($5 billion), after the estimated operating loss of 450 billion yen ($4.5 billion) expected for the fiscal year that ended in March.

Toyota's vehicle sales are forecasted to stand at around 6.5 million units, for the first time in down under the seven million units mark. This is mostly because of the situation of the US market, as well as the stronger yen, compared to the dollar and the euro.

Even with the sword over their heads, Honda officials still hope for a recovery to occur sometimes in the near future. "We will start seeing a gradual rise in car sales. Recovery will be in 2010. We are not seeing an increase but we are also not seeing a drop-off," Toyota Motor Sales USA President Jim Lentz said late last week, commenting on his company's financial results.

The grim predictions don't scare the manufacturer, as far as the PR department is concerned, and says it is heading in the right direction.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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