Toyota stock

Jack, I find it incredibly fishy that the guy simply didn't shift the car into neutral. I don't own a Prius, but I tried it in my wife's FJ Cruiser. You get to reduce speed and keep power brakes & steering. I guess some people just don't have much common sense (unless of course you can't shift a prius into neutral while driving).

[poundwise]

The interesting part of the Prius story is that the driver could not... turn the engine off. He had to get the car's speed down below 55 before the car could be turned off.

The driver did not know how to cut the push-button ignition off when the car was engaged. There is a certain procedure for this on cars with this type of ignition, though it is not standardized.

For a Toyota, you press and hold the button for three seconds. He was likely frantically pushing it over and over, which would do nothing. It seems that Mazda thought about this and the remedy in a similar situation with a Mazda is to press the button three times in succession.


ETA: The proper procedure, when faced with this situation, is to shift into neutral (the engine will rev but the car will slow) and then use the steering and brakes to guide the car and stop before turning off the ignition. (Source: Edmunds.com VIDEO)

[Penny Pincher]

I thought this is such a great opportunity that I even blogged about it.

When it comes down to it, Toyota is still committed towards safety, fuel efficiency, and affordability. Those tenets haven't changed, and if anything, this recall only illustrates such a commitment.

What they're facing is an issue that can be readily fixed and requires no major changes within vehicle design and assembly, or the corporate infrastructure for that matter that we've had to see in American automakers.

Some are worried about the retracted words from the US Transportation secretary, the ensuing government hearings, or even tomorrow's earnings report (which by the way, posted improved financial outlook even though that tidbit is being eclipsed by the safety recall). Why? Negative press is exactly the kind of thing traders who are looking for a dip wants! Especially if it doesn't jive with the company fundamentals and the problems at hand.

Look, here's the thing: People are worried because it's a serious safety issue. And people have every right to be. However, that's a SAFETY issue, not a STOCK VALUATION issue. The company is still fundamentally sound. It still has a great balance sheet and a great product line. Toyota will fix this problem, and I'll be surprised if a year or two from now, we'll even remember talking about it.

I could certainly be wrong about all this, but... I'm not just talking about it. I do plan on putting my own money on the line as well. I'm just going to buy some, sit on it, and enjoy the 1.29% dividend while I ride this storm out.

However, I can guarantee you this: Toyota is going to come out of this with stronger, better products than ever. (I also wouldn't be surprised if they no longer do business with the outside contractor who made the pedal. Yes. Toyota didn't actually make the pedal, but they're taking the heat for it.)

As Warren Buffett once said, "Be greedy when others are fearful. Be fearful when others are greedy."

Buffet with worth learning from. But you need to understand why others are fearful of Toyota stock. I expect things will get worse there long before they get better. Would you buy a Toyota car right now? If so the stock might be for you too.

[GrimJack]

Well, lookie what I found on The Gawker.

Thanks, poundwise, but if you are going to quote me to make your point you should understand my point first.

[elessar78]

As this Toyota thing unravels, do people still think the company has good long-term prospects? The stock price has really yet to dip. It seems to be holding strong despite the negative press.

[disneysteve]

As this Toyota thing unravels, do people still think the company has good long-term prospects?

I certainly do. I see no reason to think that the gas pedal thing will have a long-term impact on the company. They'll fix the problem and move on.

[elessar78]

I feel the same way but I have to ask. Since 1988 my family (parents, siblings) have exclusively bought Toyotas, so I'm biased toward their quality.

[Andrew Jackson]

From an article in the LA Times:

Graduate student Chaviva Edwards, 26, who had checked out financing offers from other automakers, said she was now seriously considering the Toyota Yaris. With lawmakers and the media trained on the company's every move, she believes Toyota will sell only the best cars available.

"The deals Toyota is putting out there are pretty tantalizing," said Edwards, who lives in Storrs, Conn.

In a rare move, Toyota last week began offering no-interest financing for 60-month loans and $1,000 cash back on some models. Sales of Toyota vehicles slumped nearly 9% in February after the automaker issued nearly 6 million recall notices in the U.S. to address sudden-acceleration problems.

I searched for this after I heard a commercial today where some of the local Toyota dealers around where I live were promoting the 60 month no-interest financing. I've always liked Toyota's, well basically just the Tacoma because a mans got to have his truck, but they have always been out of my price range. Maybe now I can finally afford one? Says the deal is only good on some of the models though.

[elessar78]

It's a good way to get in one, but whether or not it's a good buy is another question. It's still a new car and the depreciation is what kills you, not the 5–7% over 60 months.

I'd say, average price for a 2011 Camry right now is $25,000. With a 6% rate over 60 months you end up paying about $33,500 for it, but instead you can save $8500.

But 2010 Camry's (with low miles) are going for about $15K right now. Even with a 60 month loan at 7%, that's still only $21K.

[markusk]

Big story on the news today about a Prius gas pedal getting stuck on the highway. The guy was over 90mph and a cop was able to get in front of him and bring the car to a stop. That won't help matters with Toyota.

When I first heard excerpts of the 911 operator and the driver (on the evening news), I thought it odd that the 911 operation kept telling him to shift the gear to neutral and the guy kept talking about how fast he was going and that the breaks are not working, over and over again -- either he would not or did not want to put the car into neutral.

We own a Camry and a Prius and it is quite easy to shift into neutral. We've even practiced it on the road a few times, just in case.

Tonight, there was a follow up news report on NBC, on the guy in the San Diego Prius story -- that basically something in his story was not credible.

[elessar78]

There's no shortage of opportunists out there. But man, he was really committed to the hoax if he let the trooper get the police car in front of him to slow him down.

If we were giving him the benefit of the doubt, he was probably in panic mode.

When I first heard excerpts of the 911 operator and the driver (on the evening news), I thought it odd that the 911 operation kept telling him to shift the gear to neutral and the guy kept talking about how fast he was going and that the breaks are not working, over and over again -- either he would not or did not want to put the car into neutral.

We own a Camry and a Prius and it is quite easy to shift into neutral. We've even practiced it on the road a few times, just in case.

Tonight, there was a follow up news report on NBC, on the guy in the San Diego Prius story -- that basically something in his story was not credible.

Jim Sikes apparently has a history of insurance claims. Filed a $700,000 bankruptcy two years ago. The facts aren't looking good for Sikes' case, especially with the 911 call.

[playtimeover]

Hi swanson719. I think I must agree with you..