You Know The Economy Is Bad When The Talk At The Car Show Isn't About The Cars

Implications: Remarks made by Toyota executives in South Korea this week echoed those being made by other auto company executives during this weeks press days for the New York auto show where the economy more than the cars grabbed the spotlight.

Analysis:

Toyota executive vice president Tokuichi Uranishi said the automaker may miss its 2008 global sales target, which had been set at 5 percent above 2007 sales levels, due to slowing sales in major markets and the strengthening yen. The yen hit a 13 year high against the U.S. dollar this week.

"Sales in the U.S. Europe and Japan are showing signs of slowdown. It will be difficult to meet the group's sales target of 9.85 million, although emerging markets such as China and Russia are active." Uranishi told reporters.

Other Toyota executives have mentioned the rising cost of raw materials as another concern. Coping with that issue is a major priority.

Back in the U.S.A.

Meanwhile, in New York this week there was much more talk about the economy than in past years. It was actually difficult to get anyone to discuss the cars!

GM is pushing some capital expenses from the first quarter to later to make sure it has enough cash if the downturn in the U.S. worsens, the Wall Street Journal said.

Ford executives said the company is considering options to cut costs further to reach its goal of being profitable by 2009.

Chrysler CEO Bob Nardelli, who was the keynote speaker at the New York auto show's opening session Wednesday, said the automaker is positioned to weather a downturn and is on track to return to profitability "in the not to distant future."

Wow, am I the only one who remembers when the Auto Show was about the new cars?