In anticipation of increased demand during the second half of the year, Toyota announced on Thursday it will be increasing vehicle production for the United States by about 65,000 vehicles. Toyota’s inventory levels have decreased dramatically over the past few months, leaving the automaker in short supply of some of its most popular vehicles.
Since the market collapse of 2008, Toyota has worked to reduce inventory levels to about a 40-day supply. Although Toyota’s June sales plunged 32 percent, supplies of some of the automaker’s most popular models – such as the RAV4 – have dwindled to just 20-days.
“We’re seeing some optimism in the market,” Bob Carter, Toyota ’s U.S. manager, told Automotive News.
Moreover, Toyota’s light trucks are performing better than expected. While Toyota’s passenger car sales fell 37 percent last month, its light truck sales dropped just 27 percent. As such, Toyota will be increasing production of its Sienna minivan, RAV4 compact SUV, Tacoma small truck and Tundra full-size in the coming weeks.
Toyota’s announcement follows closely on the heels of Ford ’s plan to boost third quarter production by 16 percent.
