Toyota Recovery Delayed 6 More Months- Car Buying Advice Expert Adam Goldfein’s Blog
| Adam Says: For almost a month, consumers in the US have not felt the impact of the Japanese Tsunami. Automakers and other companies with a global supply chain have done an excellent job of responding the crisis. Notwithstanding their efforts, the production limitations are starting to catch up with the distribution network. In essence, dealer lots are starting to thin out. There is less inventory on the ground. Replacing a vehicle with fresh inventory is a challenge, especially for the more popular vehicles. Consumers must take notice. For it means fewer incentives on new cars. At the same time, the value of used cars (a consumer's trade) is increasing. But, the value of the trade is not increasing enough to neutralize the loss of rebates - so consumers may end up paying more for their next car. Research and information will be more important now than ever before. |
 According to Automotive News, "Toyota Motor Corp., hit hard by last month's Japanese earthquake, says it will take at least until November for production to return to normal – overseas and at home – but that factory suspensions have bottomed out and output will start rebounding this summer.The announcement makes the world's biggest automaker the first to publicly forecast a return to pre-quake levels and offers a peek at how long it may take other Japan carmakers to recover.Toyota President Akio Toyoda said today he outlined the timeframe – despite its being long-range and vague – to help dealers with planning. Until now, they have been hamstrung in pitching their products and handling customers because of looming uncertainty about inventories.
"By telling dealers the timing of the recovery, they can have a better conversation with their customers," Toyoda said at a news conference. "Dealers right now cannot talk to their customers about delivery timing. They can't talk about specifics. Sales people are having a difficult time." First Japan, then U.S. Toyota expects output overseas and in Japan to return to pre-quake levels in November or December. In Japan, output that currently hovers around 50 percent of the normal rate will start increasing in July as the final kinks in the supply chain get worked out. Factories in other countries will begin ramping up production from current levels in August. Atsushi Niimi, executive vice president for global manufacturing, said U.S. production levels – expected to be around 30 percent normal – will inch along at that rate until August. "I think that's the lowest production will drop," Niimi said. Toyota recently has announced several production cuts for plants in the United States. Assembly plants there will operate for only three days a week. And when they are running, they will work at only half the normal pace. That brings total output to about 30 percent of pre-quake levels because the plants will lie completely idle on both Mondays and Fridays." ------------------------------------------------------ |
