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Originally Posted by bwilson4web
Ok, let's assume Toyota's R&D means a loss. That bill was paid from 1994-1997 when they finished their development. No doubt we can find the annual Toyota financial statements showing Toyota is going out of business with these massive losses in the 1990s right? How about any Toyota losses?
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Why would they go out of business? It was pointed out that their deep pockets afford them more R&D. Also, would it be possible for a company to have a loss on a product line but for the company to have a gain? Keep in mind, this assumed that the R&D costs were rolled into the cost of the targeted vehicles for accounting purposes. Whether or not this is a fair assumption is beside the point.
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Originally Posted by bwilson4web
R&D is an investment for current and future profits. Invested wisely, it yields the products that keep a company in business. Spent foolishly, it leads to plant closings, laid-off workers and eventually, usually too late, management changes.
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I agree. If Toyota also has this view, they could say that they are already turning a profit on their hybrids.
Fair enough?