U.S. Toyota Dealer Inventories Soar

Too Many Of A Good Thing?

Washington DC April 28, 2008; The AIADA newsletter reported that Toyota and Scion vehicle inventories have risen to record levels because the company misjudged just how much the U.S. market would decline this year.

Automotive News reports that the number of units in dealership stock and en route have swelled to about 376,000. That's about 100,000 units more than were on the ground last summer, and up from about 348,000 a year ago.

The main problem: Toyota produced lots of pickups and SUVs, a gamble that has not paid off. "February was the highest dealer stock in the history of our region in terms of gross units," said one Southeast Toyota dealer. "I don't think we have hit an objective since July or August."

Higher inventories certainly aren't bad news for all Toyota dealers. Some that struggle to get enough products see an opportunity to expand their businesses. Still, Toyota's supply is still lower than those of Dodge, Chevrolet, and Ford.

And no Toyota dealer is complaining about having too many Prius, Corolla, Camry, or Yaris units.