V35A-FTS bearing issue?
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Toyota enterprise revenue in 2023 was $311B. Q4 of 2023 alone revenue was ~$82B. They will come up with a fix for the v35a and are well positioned financially to afford the fix they decide to deploy or get sued to deploy.
For comparison, they replaced 2nd GEN Tacoma frames as a lawsuit settlement with a cost of $3.4B. My truck was one of those that was replaced and the dealer charged Toyota $15K. Yes, Toyota can provide parts at 'company cost', but the dealer is a separate business entity and gets paid the Toyota warranty labor rate and gets reimbursed for the service loaner I was provided.
Toyota didn't go bankrupt, they didn't stop making 2nd or 3rd gen Tacomas. They paid and moved on and their stock today is up 85% from 5 years ago.
Even if they have to pay $30K each to R&R 200,000 V35a motors that cost is $6B. Toyota will take that $6B of field repairs, add in $100M of design work and cost for in-process parts rework and they will move on and keep making vehicles with V35 variants - Tundras, Sequoias, LX600, 300 Series, Lexus LS and GX550s. They won't abandon multiple platforms/markets due to this cost or this issue.
I also expect they won't want a lingering wound that damages their brand past the immediate problem. So, I believe (and hope) they get a solid fix for their customers and get the production right in a reasonable timeframe.
It will take a while, In all cases it won't break Toyota. I hope they own up, protect the brand and move out to keep customers satisfied. Unfortunately, they are eroding trust right now.
In all cases it will not break Toyota.
Additional comment for clarity of intent - The above is in response to the multitude of social media types proclaiming ‘Toyota is done, Tundra is done, etc’. This is me typing out my opinion here among sane people. Rant over.
For comparison, they replaced 2nd GEN Tacoma frames as a lawsuit settlement with a cost of $3.4B. My truck was one of those that was replaced and the dealer charged Toyota $15K. Yes, Toyota can provide parts at 'company cost', but the dealer is a separate business entity and gets paid the Toyota warranty labor rate and gets reimbursed for the service loaner I was provided.
Toyota didn't go bankrupt, they didn't stop making 2nd or 3rd gen Tacomas. They paid and moved on and their stock today is up 85% from 5 years ago.
Even if they have to pay $30K each to R&R 200,000 V35a motors that cost is $6B. Toyota will take that $6B of field repairs, add in $100M of design work and cost for in-process parts rework and they will move on and keep making vehicles with V35 variants - Tundras, Sequoias, LX600, 300 Series, Lexus LS and GX550s. They won't abandon multiple platforms/markets due to this cost or this issue.
I also expect they won't want a lingering wound that damages their brand past the immediate problem. So, I believe (and hope) they get a solid fix for their customers and get the production right in a reasonable timeframe.
It will take a while, In all cases it won't break Toyota. I hope they own up, protect the brand and move out to keep customers satisfied. Unfortunately, they are eroding trust right now.
In all cases it will not break Toyota.
Additional comment for clarity of intent - The above is in response to the multitude of social media types proclaiming ‘Toyota is done, Tundra is done, etc’. This is me typing out my opinion here among sane people. Rant over.
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Can this be considered insider trading advice? /s
I'm in Aerospace so sorry, no magic insider advice. I am pondering an order if they drop to ~$200/share to replace my Ford stock.
I own Ford for the dividend yield. As a Ford share holder I'm up and returns have been good since I bought it on a major dip. But I'm not happy with their continuous quality escapes and associated warranty expenses. With Ford I'm always wondering 'what bad announcement is next?'.
For me, TM is a higher quality stock than F.
It certainly appears to be a good long-term performer and is up 20% this year and 50% over last year. I may pick up a few shares if it drops due to bad PR over the VA35F. They did a great job playing the long game with hybrids instead of hopping on the short-term EV sugar rush. TBH, I don't typically buy vehicle stocks and mainly play in other market sectors where I have more direct business knowledge.
I was trying to be sarcastic but I hear ya. I'll stick with my index funds. Much rather play it safe although I have been very tempted to buy up some Rivian stock these last few weeks.
You don't have to put big money in individual stocks. Often times I'll invest just a several hundred to maybe a thousand bucks in a company I have knowledge of and think has a good short-term trajectory and consistent past performance. One of those paid for several of the upgrades on my GX
.Rivian is kind of dead in the water unless a big automaker buys them out. Then it would be a great investment.
With TNGA, Toyota can identify, solve, and implement a process or product design fix for issues such as this V35A issue quicker and cheaper than they ever could have dreamed before. And the fix will be applicable to all affected models, and it will take effect in every manufacturing location, due to the standardization of process and manufacturing facilities & specifications in place for each platform. All I see is upside.
TheLCProject
SILVER Star
It's stupid crap like this I'm sure. Don't click it. Don't watch it. Don't share it.
Vote with your attention and do something useful else instead, like troll ih8mud.
Cringe, cringe, and look more cringe!
Discounts will eventually come. Just not for the folks who have to run out and buy one right now. That's typically the case for any new model. I'd feel much better after hearing Toyota acknowledge, explain, and resolve these issues with the V35. They have done the first part, now let's see what comes of it.
Personally if reliability is going to be called into question on these things I too will most likely look at other brands. As a consumer if you are willing to roll the dice on expensive repairs under warranty or not it suddenly opens the floodgates with plenty of other options.
This is very negative for Toyota and it couldn't be a worse time.
They will get over it and it will be history but Nissan is releasing the y63 Patrol with a 3.5 twin turbo v6 engine and it will be interesting to see how they compare.
The reputation of the Toyota engine is currently very bad.
This would be a strong marketing advantage for Nissan in our region when they launch the 2025 Patrol in a few months.
They will get over it and it will be history but Nissan is releasing the y63 Patrol with a 3.5 twin turbo v6 engine and it will be interesting to see how they compare.
The reputation of the Toyota engine is currently very bad.
This would be a strong marketing advantage for Nissan in our region when they launch the 2025 Patrol in a few months.
Have had a number of Nissans, great vehicles. The problem is with the aftermarket, much more difficult to find build support.
They're doing a truck VR? That sounds like fun. I'd always liked the VK powered stuff but the rest of the car really wasn't as good as the drivetrain, at least not in the Nissans here.
VR35DDTT
450hp
700nm
They have been testing the Y63 for years in the desert. Benchmarked vs the LC300.
Lots of support for them in the Middle East and Australia.
