Sunday, June 14, 2009

Toyota can face Post Recession Demand Well?

Economic recession has not finished yet. However, there is some kind of a common idea among many leaders that the worst is over and from here only better condition may come. This should ring sweet bell to auto makers because they are among the most hard hit from the recession. If economic condition improves then the demand for cars should increase too. Toyota officials are confident that they are prepared for it.

Reuters reported:

"The fact that Toyota entered the downturn from a position of strength strongly suggests it will be among the first to return to profit," the weekly financial newspaper said in its June 15 edition.

If the U.S. auto market shows signs of perking up, Toyota's ADRs over the next year could go from their recent price in the high $70s to at least $115, Barron's forecast, noting they hit $137 about two years ago.

It is good for Toyota. Unfortunately, US auto makers suffered a lot. GM bankruptcy caused a havoc in America in the auto industry.