Toyota says it will ramp up its vehicle production in December to recover from previous cuts as the parts shortage caused by the coronavirus has started to ease.
USED VEHICLE PRICES WILL CONTINUE TO RISE FOR PRODUCTION CAPS: SWIFT CO-CEO
The automaker expects to build about 800,000 vehicles worldwide during the month, up from about 760,000 vehicles built in the same period a year ago. Toyota noted that its 14 plants and 28 production lines in Japan will be back to normal for the first time since May.
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“We would like to thank everyone involved for their immense support in maintaining production.” the company said in a statement. “In response to the continuing shortage of some parts, we will continue our efforts to strengthen our supply chain with our suppliers and do everything possible to ensure that we deliver as many cars to our customers as possible.”
Toyota continues to adhere to a production forecast of 9 million units for the fiscal year.
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The announcement comes as supply from the automotive industry has started to improve but is still being outperformed by consumer demand. The seasonally adjusted annual rate (SAAR) for light vehicles was 13.1 million in October, compared to around 12.3 million in September and thus at the level of August.
The average transaction price for new U.S. vehicles sold in October rose 12.9%, or $ 5,266, year-over-year to $ 46,036, according to the Kelley Blue Book, an Irvine, California-based vehicle valuation and automotive research firm .
Toyota North America sold 146,670 vehicles in October 2021, a decrease of 28.6% year over year on a volume basis. Toyota division sales for the month were 124,039 vehicles, down 30.6%, while Lexus division sales for the month hit 22,631 vehicles, down 15.2%. Meanwhile, vehicles with alternative drives rose 20.4% to a record 43,160. Total APV sales, which consist primarily of hybrid vehicles, accounted for more than 29% of total Toyota North America sales, compared to 17.5% in October 2020.
Jonathan Garber of FOX Business contributed to this report