Toyotas biggest issues lately are falling quality and incompetent procurement. They never have sufficient inventory. We were a Toyota family for the last 20 years. Just bought two new Subarus.
No brand loyalty, but I grew up with Toyotas. Lots of good memories with them. My first new car was a Scion TC. As RCR stated, everyone has a Corolla story. The hurt has nothing to do with loyalty for a company, then to see another company fall to our modern society's lust for dividends over quality.
Toyota used to make their own parts. Now, like so many others, parts come from China and Mexico. Between that and cheaper engineering to boost profit, MOST manufactures are building poorer long term quality vehicles. Turbo's, CVT, plastic parts all garbage.
I would consider this worrisome if Toyota was flat, or declining in growth Look at the 1st half numbers for Toyota. in the U.S.. They're up almost 15%, over last year, as a brand. Lexus just had their best first half in their 35 year history. They are the #1 auto brand in the U.S. They are having some recall issues on some new products, but their massive sales are matching their debt
I bought a new 2020 Camry AWD. At 57,000 miles it developed a vibration that no one could figure out. I just traded it in on a 24 Forester Touring. Miss the gas mileage, but to be honest with you, the build quality if the Forester is much better than the Camry. I don't know if the reliability is there, but we researched the Forester pretty good and it looks like it might be a good vehicle. Time will tell. Been a Toyota loyalist for 40 years but they've changed. Like everything else I suppose. Sad. Seems like everything good is fading away.
Agree. I purchased a 22 Lexus NX which on paper should be even better than its Toyota’s counterparts. But no. I have had many issues with it from missing transmission mount bolt to all kind of rattles and squeak inside the car. The assembly quality is horrible. You can see large panel gaps inside and outside the car. And this car was assembled in Canada. Toyota quality is not what it was in past and my car is a proof of this fact to me. I will not consider Toyota/Lexus in the future.
@@r3sp3ctall My wife and I bought a new 2003 Camry 21 years ago and to be honest with you, it was so much better in just the feel of quality we got from it. Oh, sure, we didn't have the tech, but the ride was absolutely silent and buttery smooth. AND we drove it 235,000 miles without one single mechanical breakdown. Not one. I miss that car.
Toyota has been making vehicles in the US for awhile now, since 1986, Honda even longer since 82, So if what you say is true then why does your graph timeline start in 2023?
It's not the workers. It's Toyota's bad engineering and cheaping down the product or cost savings that destroying Toyota. People get on here all the time and talk bad about US workers and they don't know anything about cars or the company's policies towards engineering a product
And Toyota is removing their Grand Highlander and Lexus TX from it's website and dealer inventory! The airbag in those are just one of several issues with their Grand Highlander. Sad. Everything is trash compared to what it was just a few years ago.
It's not a worker problem. Toyota engineering is going downhill. You can't blame the workers for the Toyota Tundra engines failing and the new Tacoma transmissions failing. The 2025 Toyota Camry only top out at 117 mph compared to 2024 top speed of 130mph. The new Toyota 4 Cylinder turbo transmission is bucking and jerking. U can't blame Toyota workers for bad engineering. There's more issues I didn't list
The new Tacoma was the perfect example of how to ruin your reputation. Costs were cut in every corner from the production to the design, and it shows in how many are reporting problems with them. Moreover, while the quality went down, the price skyrocketed in a move that has no basis in cost of materials or labor, but purely in greedflation. On top of all of this, you have the utterly poor reliability and lengthy time it took to come to resolution for the Tundra engines. I miss old Toyota because I really don't love what modern Toyota is doing for me.
I have a 2017 runner that I thought was going to be too expensive at first but 7 yrs later with only a set of new tires replaced and having my first strut replaced, it has been such a tank.😎 Take care of it and it will take care of you.
First I would like to know just how many auto manufacturers are without major debt? Second, how much damage did their admission to providing false information on their vehicles have impacted their financial issues. Thirdly, if Americans are the manufacturers problem, are they looking to close the American plants?
It's difficult to imagine that people haven't heard how they get financed to purchase a car. Automakers borrow from the capital market to lend to customers. They make a small interest rate difference, most of the time. Which is why the more cars you sell, the more debt appears on the Balance Sheet.
In my opinion no Japanese car was as good as my 03' Buick Lesabre. GM please bring back the Lesabre with the 3.8 liter V-6 engine and 4 speed overdrive transmission.
They still keeping a lot of their vehicles in short supply and dealers are selling them at MRSP or more on certain models, but the lots are over loaded with overpriced Tundra’s and Tacoma’s What gives with that? You cannot hardly get a Highlander, Camry, RAV4 or Sienna Van I believe they are doing this on purpose to make more profit.
Dave, Toyota's deficit is still higher than their debt, but the higher interest rates they pay on bonds sold to ad to debt helps create this problem, just as it does the US. If I buy a thousand dollar bond I just added that amount to the debt. The Government actually only owes the interest rate which is much lower.
Investment in hydrogen which can cost over 180 dollars to fill up for 400 miles range with the gas coming from questionable sources and available in only one state, half-hearted cobbled together EVs with short range and high prices for their class and not even a glove compartment or proper storage, truck engines with extra metal filings inside them, an emphasis on high end gadget fill models with high end pricing... this is beginning to sound all too much like another failing company - Chrysler. Hmm, maybe the two companies should merge and sink together?
Moving their manufacturing was the issue that caused this. Toyota’s were great vehicles when they were built in Japan. Once they decided to move a lot of manufacturing to America, it went downhill. American automotive workers just don’t care about building quality vehicles IMO. Toyota needs to move production back to Japan if they want to once again build a quality product.
Toyota’s balance sheet is favorable when compared to most car makers. Car companies with a ranking of three or less are in financial distress. Toyota is approximately a six. It’s true that Toyota’s debt is higher than average but they still enjoy a strong cash flow. For example, Toyota’s net cash flow was $13.076B, a 25.92% increase from the previous year.
Hydrogen as a fuel for vehicles is a dead end technology. A Hydrogen vehicle is basically an electric vehicle that still needs a battery as well as a fuel cell to produce electricity. The cost to produce Hydrogen is energy intensive, storing and transporting Hydrogen is difficult mainly because it needs to be at minus 253 deg C to remain in a liquid state. Building a Hydrogen re fueling station is expensive. A Hydrogen vehicle needs compressed Hydrogen not liquid Hydrogen, compressed Hydrogen for a vehicle needs to be at 10,000 psi. Overall to produce and fuel a Hydrogen vehicle takes up to 5 times the energy required to power a full electric vehicle.
What a silly half-*ssed analysis! Yes there is debt / leveraging but no mention of their profits or projected income which btw per the latest statement for fiscal year 25’ is $317 billion. Also their profit margins are quite sizable. They also have some significant investments in future tech. I think they know what they are doing much better than you or I. Also the claims made here are pretty whacked. Akio Toyoda, the former CEO rightly called that a total EV emphasis was the wrong way forward that GM and Ford fell into and now are suffering the repercussions for. Toyotas mantra has always been hybrids for the near future that is reflected in their very dominant new lineup.
I bought a Corolla last year. Built in Canada. Nice car. But when I drive thru a certain part of the interstate the motor revs to 4,000 rpm. Then goes back to normal. Only happens when the cruise control is on. Glad I have a lifetime powertrain warranty
toyota has a huge debt problem Looking at their polution cheating. Dropping of real sales high interest rates going to be interesting watching what happens over the next 3 to 5 years
In a weakening economy, Toyota is leading the industry Toyota in the first half is up 14.7%. For some context. Ford is up 3%. GM is down .4%. Honda is up 9%. Tesla is down 6% I'm not gonna worry about Toyota, when they have the #1 brand, #1 car and #1 crossover in the nation
Toyota was heavily in debt way before "autonomy", EVs or Hydrogen was ever a thing. Toyota is CERTAINLY NOT launching several new EV models. By comparison, Tesla is investing BILLIONS into AI, Autonomy, Robotics and Energy... all while ramping the world's most popular vehicles ( Y and 3 ) and doing it with astonishingly low debt levels. *Toyota is lost in the past.*
I was a supplier to the car manufacturers for 40 years and their arrogance and blackmailing of suppliers have finally caught up with them,cannot say I am sorry to see them being replaced by the Chinese
I have a ‘04 Lexus. Great quality! I have a ‘21 Highlander and everything is fine but I see lots of people complaining about the ‘22/23/24 Highlanders. What a shame.
You would think the news media would be talking about this. GM was number one in the world untill very bad management bad choices., gave up on the NUMMI plant with TOYOTA. Arrogant union workers
Hey from Canada - the quality and reliability issue also occurred for Honda when they were forced to build in America and have a quota of non Honda parts during assembly particularly for the Civic model. Although a much, much smaller player Subaru has gained momentum in the industry, once this catches the eye of the powers that be, will we see quality and reliability go down I wonder. I enjoy your perspective on the industry. Cheers
Remember Toyota owns 20% of Subaru…. Toyota also holds a 5.1% stake in Mazda, a 4.9% stake in Suzuki, a 4.6% stake in Isuzu, a 3.8% stake in Yamaha Motor Corporation, and a 2.8% stake in Panasonic, as well as stakes in vehicle manufacturing joint-ventures in China (FAW Toyota and GAC Toyota), the Czech Republic..
Toyota mechanical components are reliable, the rest of the vehicle built around them are JUNK! I know because at ten years old here in the UK a lot of them are rotten and need welding up for the annual roadworthyness test. Good for my business because I weld the rust buckets up!
I never paid attention to Toyotas because I like American luxury cars, but even Cadillac, Lincoln, Buick and Chrysler are all disappointing for all of their own respective reasons… but if Toyota would build a fancy looking car with a luxurious interior and priced it sensibly… I’d like one. We need an auto manufacturing makeover on everything and they need another ‘economizing’ phase like the early 1980’s.
Issues with Toyotas can be attributed to inferior design or redesign of components as well as assembly issues. That would be an internal issue not an employee problem. So who paid you to do this fluff piece?
I called Nissan Corporate to tell them I wanted a car but local dealers have them marked up by 20k and the lady basically said "They're sorry about that but dealerships are privately owned so there's nothing we can do". Their only solution was that I call around other dealerships to find one at MSRP which is exactly what I had already planned but I was curious what corporate would say so I gave them a call.
You know who else is drowning in debt? America.
That's to all that govt bond interest and tax avoidance for the wealthy.
Trump. Lol. Nah but seriously send help. America needs to get it's bills together.
@@toyotaprius79The ones saying tax the wealthy are the wealthy..why are you people so ignorant?? please don't vote in the next election
@@Kuweiyono we don't..the debt is real ..no matter what CNN tells ya😂
It won't be paid back. They can't even stop digging a deeper hole. I think its planned.
Toyotas biggest issues lately are falling quality and incompetent procurement. They never have sufficient inventory. We were a Toyota family for the last 20 years. Just bought two new Subarus.
As a Toyota service advisor I can confirm quality control issues on newer models.
Cuz dei hires
People feeling "hurt" over vehicle manufacturers amazes me. I have zero brand loyalty
That's how it should be
Ditto.
No brand loyalty, but I grew up with Toyotas. Lots of good memories with them. My first new car was a Scion TC. As RCR stated, everyone has a Corolla story. The hurt has nothing to do with loyalty for a company, then to see another company fall to our modern society's lust for dividends over quality.
Toyota used to make their own parts. Now, like so many others, parts come from China and Mexico. Between that and cheaper engineering to boost profit, MOST manufactures are building poorer long term quality vehicles. Turbo's, CVT, plastic parts all garbage.
Everything's loaded with tech too.
I would consider this worrisome if Toyota was flat, or declining in growth
Look at the 1st half numbers for Toyota. in the U.S.. They're up almost 15%, over last year, as a brand.
Lexus just had their best first half in their 35 year history. They are the #1 auto brand in the U.S. They are having some recall issues on some new products, but their massive sales are matching their debt
Economics is a certain form of brain damage
My sister in law just bought a lease returned Lexus 300. $33K and 30K miles. It's immaculate.
Well toyota does its own financing. That's where the debt comes from
They earn interest from the sales.
@davidanderson8469 there is still the debt of owning those loans though
I bought a new 2020 Camry AWD. At 57,000 miles it developed a vibration that no one could figure out. I just traded it in on a 24 Forester Touring. Miss the gas mileage, but to be honest with you, the build quality if the Forester is much better than the Camry. I don't know if the reliability is there, but we researched the Forester pretty good and it looks like it might be a good vehicle. Time will tell. Been a Toyota loyalist for 40 years but they've changed. Like everything else I suppose. Sad. Seems like everything good is fading away.
Heard the new Subarus are great. Hope you enjoy it.
Agree. I purchased a 22 Lexus NX which on paper should be even better than its Toyota’s counterparts. But no. I have had many issues with it from missing transmission mount bolt to all kind of rattles and squeak inside the car. The assembly quality is horrible. You can see large panel gaps inside and outside the car. And this car was assembled in Canada. Toyota quality is not what it was in past and my car is a proof of this fact to me. I will not consider Toyota/Lexus in the future.
@@r3sp3ctall My wife and I bought a new 2003 Camry 21 years ago and to be honest with you, it was so much better in just the feel of quality we got from it. Oh, sure, we didn't have the tech, but the ride was absolutely silent and buttery smooth. AND we drove it 235,000 miles without one single mechanical breakdown. Not one. I miss that car.
Some sweet karma, for their overpriced inventory after coming to market with these turbo powered go kart engines
i just traded in my 2014 Toyota highlander for a 2024 Cadillac XT4….love it!
my other car is a 2017 Corvette with stickshift
Toyota has been making vehicles in the US for awhile now, since 1986, Honda even longer since 82, So if what you say is true then why does your graph timeline start in 2023?
It's not the workers. It's Toyota's bad engineering and cheaping down the product or cost savings that destroying Toyota. People get on here all the time and talk bad about US workers and they don't know anything about cars or the company's policies towards engineering a product
I had a 1974 Hilux. It surged down the road and the clutch pedal would hit the floor leaving me with a truck under gear.
And Toyota is removing their Grand Highlander and Lexus TX from it's website and dealer inventory! The airbag in those are just one of several issues with their Grand Highlander. Sad. Everything is trash compared to what it was just a few years ago.
It's not a worker problem. Toyota engineering is going downhill. You can't blame the workers for the Toyota Tundra engines failing and the new Tacoma transmissions failing. The 2025 Toyota Camry only top out at 117 mph compared to 2024 top speed of 130mph. The new Toyota 4 Cylinder turbo transmission is bucking and jerking. U can't blame Toyota workers for bad engineering. There's more issues I didn't list
The new Tacoma was the perfect example of how to ruin your reputation. Costs were cut in every corner from the production to the design, and it shows in how many are reporting problems with them. Moreover, while the quality went down, the price skyrocketed in a move that has no basis in cost of materials or labor, but purely in greedflation. On top of all of this, you have the utterly poor reliability and lengthy time it took to come to resolution for the Tundra engines.
I miss old Toyota because I really don't love what modern Toyota is doing for me.
31.82 billion U.S. dollars 2023 profit for toyota i do not see the problem
Exactly. Debt is fine if the payments can be made. Interest is a write off.
241.82 billion in debt though?
Exactly. $32 Billion in profits does is only like 13% of the debt. I doubt that all of the profit goes solely to paying the debt. @@johannesmccoy5603
I bought a 5th gen 4runner that will still be running after all of the auto manufacturers declare bankruptcy 😅
I have a 2017 runner that I thought was going to be too expensive at first but 7 yrs later with only a set of new tires replaced and having my first strut replaced, it has been such a tank.😎 Take care of it and it will take care of you.
And I bought a John Deere riding lawn mower made in the USA that crapped out after less than 60 hours on the meter.
Warranty?
First I would like to know just how many auto manufacturers are without major debt? Second, how much damage did their admission to providing false information on their vehicles have impacted their financial issues. Thirdly, if Americans are the manufacturers problem, are they looking to close the American plants?
It's difficult to imagine that people haven't heard how they get financed to purchase a car. Automakers borrow from the capital market to lend to customers. They make a small interest rate difference, most of the time. Which is why the more cars you sell, the more debt appears on the Balance Sheet.
In my opinion no Japanese car was as good as my 03' Buick Lesabre. GM please bring back the Lesabre with the 3.8 liter V-6 engine and 4 speed overdrive transmission.
They still keeping a lot of their vehicles in short supply and dealers are selling them at MRSP or more on certain models, but the lots are over loaded with overpriced Tundra’s and Tacoma’s
What gives with that? You cannot hardly get a Highlander, Camry, RAV4 or Sienna Van
I believe they are doing this on purpose to make more profit.
Yes they are doing it on purpose and karma is getting onto them
Dave, Toyota's deficit is still higher than their debt, but the higher interest rates they pay on bonds sold to ad to debt helps create this problem, just as it does the US. If I buy a thousand dollar bond I just added that amount to the debt. The Government actually only owes the interest rate which is much lower.
Investment in hydrogen which can cost over 180 dollars to fill up for 400 miles range with the gas coming from questionable sources and available in only one state, half-hearted cobbled together EVs with short range and high prices for their class and not even a glove compartment or proper storage, truck engines with extra metal filings inside them, an emphasis on high end gadget fill models with high end pricing... this is beginning to sound all too much like another failing company - Chrysler. Hmm, maybe the two companies should merge and sink together?
Moving their manufacturing was the issue that caused this. Toyota’s were great vehicles when they were built in Japan. Once they decided to move a lot of manufacturing to America, it went downhill.
American automotive workers just don’t care about building quality vehicles IMO.
Toyota needs to move production back to Japan if they want to once again build a quality product.
You clearly don’t understand global business.
Toyota’s balance sheet is favorable when compared to most car makers. Car companies with a ranking of three or less are in financial distress. Toyota is approximately a six. It’s true that Toyota’s debt is higher than average but they still enjoy a strong cash flow. For example, Toyota’s net cash flow was $13.076B, a 25.92% increase from the previous year.
Hydrogen as a fuel for vehicles is a dead end technology. A Hydrogen vehicle is basically an electric vehicle that still needs a battery as well as a fuel cell to produce electricity. The cost to produce Hydrogen is energy intensive, storing and transporting Hydrogen is difficult mainly because it needs to be at minus 253 deg C to remain in a liquid state. Building a Hydrogen re fueling station is expensive. A Hydrogen vehicle needs compressed Hydrogen not liquid Hydrogen, compressed Hydrogen for a vehicle needs to be at 10,000 psi. Overall to produce and fuel a Hydrogen vehicle takes up to 5 times the energy required to power a full electric vehicle.
Toyota isn’t drowning in debt. In Japan they frequently pay you to barrow money.
I'll buy a 2024 Tacoma TRD Pro tomorrow for $20k off
3:06 shift towards what? Electrication? That’s dull. Cheerio.
They have extra cash on hand to weather any storm.
Not worried.
Transmission issues now
if it was a problem the stock price wouldn't be so high.
What a silly half-*ssed analysis! Yes there is debt / leveraging but no mention of their profits or projected income which btw per the latest statement for fiscal year 25’ is $317 billion. Also their profit margins are quite sizable. They also have some significant investments in future tech. I think they know what they are doing much better than you or I.
Also the claims made here are pretty whacked. Akio Toyoda, the former CEO rightly called that a total EV emphasis was the wrong way forward that GM and Ford fell into and now are suffering the repercussions for. Toyotas mantra has always been hybrids for the near future that is reflected in their very dominant new lineup.
i bought 25 camry two months ago but transmission went out... i wont buy another toyota
not good to be on top,look what happened to the general
Well they can’t make cars and long waiting times so I am wondering how those dealerships and Toyota itself makes money
Toyota has lost most of its sales in the world's biggest auto market, China! They just can't compete with three Chinese NEVs. In fact no one can.
That 240B debt will grow with its turbo engines @$70k. Who will pay that much for turbos?😂😂😂😂😂😂😂😂😂
Click bait.
I bought a Corolla last year. Built in Canada. Nice car.
But when I drive thru a certain part of the interstate the motor revs to 4,000 rpm.
Then goes back to normal. Only happens when the cruise control is on.
Glad I have a lifetime powertrain warranty
toyota has a huge debt problem Looking at their polution cheating. Dropping of real sales high interest rates going to be interesting watching what happens over the next 3 to 5 years
In a weakening economy, Toyota is leading the industry
Toyota in the first half is up 14.7%.
For some context. Ford is up 3%. GM is down .4%. Honda is up 9%. Tesla is down 6%
I'm not gonna worry about Toyota, when they have the #1 brand, #1 car and #1 crossover in the nation
So why are they worried about BYD?
Toyota was heavily in debt way before "autonomy", EVs or Hydrogen was ever a thing. Toyota is CERTAINLY NOT launching several new EV models. By comparison, Tesla is investing BILLIONS into AI, Autonomy, Robotics and Energy... all while ramping the world's most popular vehicles ( Y and 3 ) and doing it with astonishingly low debt levels. *Toyota is lost in the past.*
They brought that horrible 'Jan' back. Not as bad as Nissan's Stink Cheese Larsen but bad enough.
I was a supplier to the car manufacturers for 40 years and their arrogance and blackmailing of suppliers have finally caught up with them,cannot say I am sorry to see them being replaced by the Chinese
I believe Toyota is taking a bet, but extremely desirable products like the prius, the sports cars and the hybrid SUV's keep backing the company.
I have a ‘04 Lexus. Great quality! I have a ‘21 Highlander and everything is fine but I see lots of people complaining about the ‘22/23/24 Highlanders. What a shame.
Yours wasn't built at 4:30 pm on a Friday probably
2023 is when they switched to the turbo engine. I knew I was not going to buy a new one then.
I am Toyota only car driver. No new Toyotas for me anymore. Only great older Toyotas now for our family. The new stuff is too much like a Chevy!😢
All the car manufacturers are hurting
You would think the news media would be talking about this.
GM was number one in the world untill very bad management bad choices., gave up on the NUMMI plant with TOYOTA. Arrogant union workers
Manage it like the US Government - just borrow more 😉
Hey from Canada - the quality and reliability issue also occurred for Honda when they were forced to build in America and have a quota of non Honda parts during assembly particularly for the Civic model. Although a much, much smaller player Subaru has gained momentum in the industry, once this catches the eye of the powers that be, will we see quality and reliability go down I wonder. I enjoy your perspective on the industry. Cheers
Remember Toyota owns 20% of Subaru….
Toyota also holds a 5.1% stake in Mazda, a 4.9% stake in Suzuki, a 4.6% stake in Isuzu, a 3.8% stake in Yamaha Motor Corporation, and a 2.8% stake in Panasonic, as well as stakes in vehicle manufacturing joint-ventures in China (FAW Toyota and GAC Toyota), the Czech Republic..
Toyota is still Toyota! I wouldn’t bet against them
Toyota mechanical components are reliable, the rest of the vehicle built around them are JUNK! I know because at ten years old here in the UK a lot of them are rotten and need welding up for the annual roadworthyness test. Good for my business because I weld the rust buckets up!
Never had luck with Toyota no matter where they are made 😂..ill stay with my sonata
Toyota don't know how to make turbo engines
What? Celica GT4, Original Supra Turbo. They know how to make them, but are just cheaping out now
@@Blue-moon12 they really ruined the reputation of their brand
kia and Hyundai will benefit from this because they improved in reliability
Reliability reliability !!!
I never paid attention to Toyotas because I like American luxury cars, but even Cadillac, Lincoln, Buick and Chrysler are all disappointing for all of their own respective reasons… but if Toyota would build a fancy looking car with a luxurious interior and priced it sensibly… I’d like one. We need an auto manufacturing makeover on everything and they need another ‘economizing’ phase like the early 1980’s.
King of debt be back 2025 👑 make sure u know who to vote
Great video
Issues with Toyotas can be attributed to inferior design or redesign of components as well as assembly issues. That would be an internal issue not an employee problem. So who paid you to do this fluff piece?
i would have put money on the so called big three bad products bad management bad prices who knew
They should consider how their dealerships treat people. Maybe that has something to do with it
I called Nissan Corporate to tell them I wanted a car but local dealers have them marked up by 20k and the lady basically said "They're sorry about that but dealerships are privately owned so there's nothing we can do". Their only solution was that I call around other dealerships to find one at MSRP which is exactly what I had already planned but I was curious what corporate would say so I gave them a call.
Wow! You just called Toyota a POS. You’ve really gotten opinionated in your old age.
Hmm, i think Stellantis has Toyota beat.
😢