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Toyota to increase North American production

06/03/2009, 10:21 AM

By Andrew Ganz

Despite lackluster sales last month, Toyota says it predicts an upswing in demand that will require it to increase North American production of the majority of its mainstream products. Toyota’s sales were off by nearly 40 percent last month, compared to the year before, but the automaker says its retail sales are showing signs of improvement.

Speaking to the media during a teleconference, Toyota Division general manager Bob Carter said that retail sales are looking up. Presumably, much of the drop-off in sales was due to reduced fleet sales. Ford and General Motors, among others, have also reported dramatically reduced fleet sales.

Toyota says it will increase production in North America by about 65,000 units. The automaker plans to build more Camry, Corolla, Sienna, RAV4, Tacoma and Tundra vehicles – all of which are built in either the United States or Canada.

Carter said that inventory has fallen to just 41 days’ supply, down from the 62 days at the beginning of May.

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06/03, 10:57 AM

posted by:

Borat

More production in US, more jobs here. This is good news.

06/03, 11:41 AM

posted by:

DrFill

More production is always a good sign
DrFill

06/03, 12:13 PM

posted by:

injunraiv

Good news indeed, but it would be better for the country if it were under American control…

06/03, 1:04 PM

posted by:

Borat

I dunno. We already have/own 2 companies under government control, you think we need any more? Our auto management is far from perfect or even far from decent.

06/03, 1:18 PM

posted by:

elviososa

Hmmmmm…so we will see more FUGLY Toyota flooding the street??

06/03, 1:21 PM

posted by:

F3INT))AP3X

GM is winding down so Toyota is stepping up their production, speculating that people will still need cars and Toyota’s will be come much more abundant once the GM dealerships start closing. Some of you may not be excited about more Toyota cars but their is no denying this is probably a smart business decision to gain a few more sales in these hard times.

06/03, 1:32 PM

posted by:

A4

hideous

06/03, 2:33 PM

posted by:

carstuff

The good news here is that this is another data point that our economy is improving and car sales are looking up. Of course Toyota may be mistaken, but they are agreeing with what I said 3 months ago. Sales of vehicles will increase over the last half of the year pretty significantly. We should have a 10.5 million to 11 million sales year for 2009. The only real stickler I forsee is gas prices. Idiots are raising them again and could kill the sales.

FYI-GM is aiming to be profitable in a 10.5 million market with this bankruptcy. The February restructuring plan was aimed to be profitable at 11.5 million units and the government made them lower that unit sales.

You can riddle me all you want but GM will be profitable this time next year. Someone can write this down and hang on to it if they want.

06/03, 3:20 PM

posted by:

sj79

I guess Borat doesnt realize Canada isn’t the US. The RAV4, RX350 and possibly other Toyota products are built in Canada. Toyota is crazy for adding production so soon.

“You can riddle me all you want but GM will be profitable this time next year. Someone can write this down and hang on to it if they want.”

You are correct.

F3:

Let me ask you something: Why is Toyota any more likely than GM, Ford, Hyundai or Honda to pick up sales from former GM or Chrysler owners? I would think Ford would be the FIRST stop for these people. Toyota isnt going to get a huge boost from GM’s troubles. You can rest assured that GM is going to roll out major incentives to hold on to existing customers as they phase out brands.

06/03, 3:59 PM

posted by:

Borat

sj79, Borat does realize that US and Canada are two sovereign countries. I also can read. The article states: “The automaker plans to build more Camry, Corolla, Sienna, RAV4, Tacoma and Tundra vehicles – all of which are built in either the United States or Canada.”.
What don’t you understand? Your add kicked in and redilin is wearing off?

06/03, 4:22 PM

posted by:

Rafa LL

Mocking the sh¡t out of Americompanies.

06/03, 5:18 PM

posted by:

A4

Did you just refer to yourself in the third person?

06/03, 6:33 PM

posted by:

beemerdude

This is SO obviously a media war with Ford!! Ford announced the very same thing on Monday (that they would be INCREASING production). And Ford is outselling Toyota right now. So … as not to be upstated… Toyota issues a release saying they are moving ahead with higher production (even though there current sales are in the toilet).

The blatant public relations manipulation going on here is laughable!!

06/03, 7:53 PM

posted by:

Borat

beemer, I don’t know. What if they do increase production? perhaps not across the board, but RAV-4 inventory isn’t great those that are in inventory mostly loaded with options no one asked for. maybe they do need to adjust product mix, because marketing folks screwed up on mix.

06/03, 8:33 PM

posted by:

jayjc08

I think Toyota has enough in stock to last two months. Same with Ford. So why not sell those models first and then ramp up production?

sj79- I wouldn’t say Toyota would be first in line. But aside from a Ford, I would bet that most former American buyers would go to shop at Toyota due to their somewhat American image, and their full product line that covers all the bases the Big Three did. Second, not first.

06/04, 1:08 AM

posted by:

elviososa

hey guy….Toyota is more American than you thought because their quality is falling “Like A Rock”….sounds familiar to you??? LIKE A ROCK….anyone?? hehe

06/04, 9:20 AM

posted by:

sj79

Jay:

Any americans that want to shop Toyota can do so now. Last month Toyota did worse than GM in terms of sales. WHat is going to change in the next few months? with all of the negative press surrounding GM Toyota SHOULD be doing better. They are not. I think many folks are overestimating the exodus from GM. It would be one thing if GM was bankrupt and had little new product, but they are launching four nice products this summer and the Camaro is already on sale. What exactly is going to cause a sudden defection to Toyota? GM has been in a bad light since last October and yet their sales are doing only sligtly worse than the industry average. Last year many “experts” were predicting that Toyota would pass GM in the US by 2009. And that was BEFORE anyone knew GM would be bankrupt. Everyone keeps waiting for this miraculous uptick in Toyota sales, its not going to happen.

Borat:

If you know Toyota is adding production in CAnada why would you be touting this as creating American jobs? They are not adding a single job in either country, they are merely increasing the production rates at a few plants. They have obviously cut production so far that they have no choice but to increase it now to replenish dealers. This is not any indicator of booming Toyota sales.

 
 
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