Misjudging the U.S. market and the decline of automotive sales, inventories at Toyota and Scion have increased to record levels. Number of units at dealerships and those on their way to showrooms have swelled up to 376,000, about 100,000 more than last summer and up from 348,000 a year ago.
According to Automotive News, the main problem is that Toyota produced a large amount of pickups and SUVs, misjudging the amount of gas-guzzling vehicles it could sell to the U.S. market.
Higher inventories are usualy due to in part of higher sales, however, sales at Toyota and Scion was down 505,232 units during the first three months of 2008.
“February was the highest dealer stock in the history of our region in terms of gross units,” said a Toyota dealer in the Southeast region. “I don’t think we have hit an objective since July or August.”
Toyota execs decline to comment on the situation.
Source: Automotive News (Subscription Required)