Strong Yen and Weak US Economy Hurt Toyota, Too

Now that oil prices are soaring (Goldman now sees $150-$200), US car makers Ford and GM have once again been caught fighting the last war, producing dozens of gaz-guzzling models that consumers don’t want.

The model of automobile efficiency and innovation (at least compared to the US automakers), Toyota (TM), isn’t immune to American woes either: A strong yen and weak US economy caused Toyota Motor Corp. to post a less than stellar quarter: a larger than expected 28% decline in net income for the January to March quarter compared to one year earlier.

But as Toyota competes with companies like General Motors in emerging markets like China, Russia and The Middle East (GM), expect the one who innovates the fastest to win. That’s Toyota.

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