http://www.vancouversun.com/business/Toyota+sales+decline+Ford+surges/3766246/story.html
Summary:
The article I read mentions that the Toyota Canada Inc. declines in the October sales in the aftermath of recalls. Toyota vehicles is separated from Lexus and Scion. They are losing money since the recalls, Toyota only sold 247 Scions in the first full month of sales. so they are planning to expand the Scion dealership in order to compensate the decline. Toyota sales are dipped 12.4 per cent compare to the sales in 2009. On the other hand, Ford surges by the time Toyota is declining. Ford is more profitable compare to Toyota. Ford increases 8 per cent in the October sales. It actually increases 20 per cent compare to 2009.
Connection:
The connection to chapter two is the plan of investment by looking the financial statement of a company. Financial statement shows whether the company is profitable or not. For example, after you looked at the financial statement of Toyota, you will noticed that this is not a good company to invest because the financial statement from the past to present is showing that Toyota's profit is declining. In contrast, Ford is a good company to invest because it is profitable and it has the potential of making a bigger profit.
Reflection:
The recalls of Toyota vehicles caused a huge impact of the direction of Toyota, it's profit is declining until now. As a investor, I would not invest to Toyota because Toyota is not that reliable as before after the recalls. Many people do not want to buy Toyota's vehicles. It decreases the profit of Toyota. If you invest Toyota at this time, you will actually lose money. On the other hand, this is a good opportunity for the investment of Ford because the profit of Ford is increasing rapidly, If you invest to Ford now, you will actually make a lot of money within a short period.
