Toilet Odor? Toyota Joins the Fray

Toyota has flushed out 120 temporary workers early and reduced production in their latest layoff. Additionally, they will be reducing overtime on the remaining employees, in effect giving them a pay cut. These are all expected to be US employees and reach many of their plants such as upstate New York.

This will affect spending across the board by those employees at Toyota. The company has to do what it can to survive while the USA clownsumer hangs on to their cars a little longer and drives them a little less.

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Big ticket items taking big hit

Toyota reported a decline in sales for the first time in seven years with car demand in the USA doing a one-up on that figure by having its own worst in seventeen years. It'd be an interesting exercise to take a look at the trade-down effect as wel. Revenue per sale would be an interesting number to know. At any rate, this tells me people have pulled back from big ticket items like new cars and instead paid a visit to the repair shop for once in the past seven years which should be decent for the owners and employees of said shops.

Eyeing the US Dollar and the Japanese Yen over the credit bubble implosion and carry trade reversal, it seems with this trend intact, they will not enjoy a strengthening of earnings into the next quarter.