During a press call to discuss March sales results today, Bob Carter, Toyota Division group vice president and general manager, Toyota Motor Sales, U.S.A. (TMS) said “The events in Japan had little if any impact on March sales.”
However, that doesn’t mean that Toyota no longer faces production and resulting sales problems because of the plant shutdowns caused by the Japan earthquake, tsunami and nuclear power plant meltdowns. Carter noted that the U.S. and Japanese production situation “continues to remain fluid,” with new information arriving hourly.
During the press conference it became clear that there are at least three potential problem areas facing TMS.
- The heavily damaged Toyota Miyagi plant in Japan builds the fuel-efficient Yaris sub-compact as gasoline prices soar, but there are 68 days of inventory on hand for what is a relatively weak seller since it is due for replacement later this year, and Toyota is concentrating on selling the compact Corolla.
- The Toyota Prius is also in short supply with 12,000 units in inventory – now at an 18 day supply, down from 32 days at the beginning of the month. Prius shortages are nothing new to Toyota dealers, and the Prius is now back in production for the moment in Japan. Carter says he is optimistic that supplies will be adequate.
- U.S. luxury sales leader Lexus is heavily dependent on Japanese production and could lose that spot if production interruptions continue.
As a sales executive Carter naturally remains optimistic. He said that TMS is going into the spring selling season with 352,000 vehicles, a 55-day supply based on current selling rates, which is about normal.
Toyota Statement Regarding Status of North American Production
NEW YORK, NY (April 4, 2011; Posted at 3:15 PM EDT) Contrary to recent headlines, nothing has changed from our update from March 23rd regarding our North American operations.
We continue to assess our supply base in Japan following the earthquake/tsunami. We have communicated to team members, associates and dealers here that some production interruptions in North America are likely. It’s too early to predict location or duration.
Currently, the greatest majority of parts for our North America-built vehicles come from approximately 500 suppliers in North America. Also, we continue to receive parts from Japan that were already in the pipeline, limiting the immediate impact. We will continue to work closely with suppliers in North America and Japan to minimize any disruptions to Toyota’s overall North American operations.