Toyota Motor Corp (ADR) (NYSE:TM)

I like Toyota, especially the RWD Lexus cars and SUV/trucks. The Prius is a modern feat of engineering. Still, I feel their time has come and passed. A few of their recent designs are polarizing, like the '10 4runner, Tunda and FJ Cruiser. But most of their vehicles look very bland and common, compare the styling cues between the Avalon and LS430, for example.

The construction of a halo supercar like the Lexus LFA could be a fatal mistake. What is Toyota trying to prove besides following classic Big 3 mistakes? They bailed on F1 after seven years. Toyota should have brought back the Supra based on the current FR designs, priced it at 30k to start, 45k well-optioned with a 70k engine option. They have too many front-wheel drive cars including the Scion vehicles.

I bought a used 04 4runner w/V8, 4wd and nearly every option. The truck has been great but there's 2 minor issues which I see all over the internet, so it's not isolated to just me (sulfur smell and driveshaft jerk). Both of them are fixable but based on Toyota (and Lexus GX470) dealer response and fixes I've read from others, it's totally unacceptable for a $40,000 SUV. It makes me question the honesty and quality of car dealerships in general, not to mention having pity for new-vehicle buyers struggling with warranty fixes.

Good earnings ahead.

way over valued

Toyota has a competitive advantage over its peers; The toyota production system. While other companies, even outside auto, have tried to copy the system it has been elusive to sustain the rapid pace of improvements. While others are outsourcing to low cost 3rd world countries, TM is moving production and sourcing to the US. The do this by following their unique philosophy that others simply do not and can not understand.

"Buy American" attitude means a lot right now! Especially with Ford rippin and roarin!

Basic Valuation Play

they don't have enough cars to sell.

you know what that means

It is hard to imagine that cars will be obsolete. The general concept of a mobile system is hard to take away, unless we find a totally different paradigm of mobility. It is not impossible but I would say the odds are low.

Long term pick. Best manufacturing processes, best quality and resale, dominant position in the market will ensure Toyota ends up on top.

2009 World's Most Ethical Companies:
http://ethisphere.com/wme2009/

Toyota at a p/e of 7?!? Now, I can understand pessimism swirling around having to compete with government sponsored American automotive companies, but this company is a proven innovator, deserving a premium much like that of an Apple or Google. This seems like a fine entry point for the long haul.

GREAT AUTO MAKERS

With the struggles the Big 3 have had over the past several years and beyond, Toyota is poised to gain market share on a small scale basis in the very near term, as well as a much larger basis once the economic fears of the current economy subside.

In the 90's the reason North American youths bought a Toyota was because of TRD,GREDDY,BLITZ, and the import scene(custom car scene)
Today the reason North Americans bought a Toyota is the balance of performance and fuel mileage from the manufacturer.
As long as fuel prices stay high Toyota will benefit!!!

While American and possibly European auto-industry is restructuring,Japan's auto-industry is in great shape!(flush with cash and state-of-the-art machinery/tooling housed in regional Toyota factories).

good automakers

This is a stable, slow pick heavy on root fundamental (let's not even discuss market outlook and all that mumbo jumbo - we're talking about corporate culture of people, innovation, and excellence deeply instilled in Toyota like nowhere else) - if people still buy car and will buy car again one day, Toyota will be the brand of choice, mostly anyway.

Toyota has been oversold.

I won't buy a car that isn't a Toyota (or Lexus). While I don't consider buying a car to be an investment, I do consider buying a Toyota an investment in comparison to buying from other car manufacturing companies for two reasons: quality and longevity!