Toyota says port closing to reduce October U.S. sales

October 11, 2002

Dearborn, Mich. Joe Miller writing for Bloomberg news reported that Toyota Motor Corp. joined Nissan Motor Co. in saying the U.S. ports shutdown may reduce October sales more than 10 percent, affecting some of the Asian automakers' most profitable vehicles.

Japan's biggest automaker may deliver about 50,000 fewer Toyota and Lexus cars and light trucks to dealers this month because of delays from the port lockout, said Don Esmond, a U.S.-based Toyota vice president. October U.S. sales probably will be 10 percent to 15 percent lower than initially forecast, he said.

Nissan last week reduced its October U.S. sales forecast at least 10 percent. Toyota, Honda Motor Co. and Nissan build most of the vehicles they sell in the U.S. at North American plants. Still, Toyota and Nissan ship luxury models from Japan and all three companies rely on parts from Japan, leaving them more exposed to supply disruptions than U.S.-based rivals.

"The primary impact on sales is going to be felt by big Japanese automakers," said Michael Luckey, president of automotive forecaster Luckey Consulting Group Inc. "Toyota, Nissan and Honda build a lot here but they still import quite a bit through West Coast ports. A 10 percent to 15 percent impact for them sounds reasonable."

The 29 West Coast ports plan to open 24 hours a day to clear tons of rotting produce and unload car parts from ships as 10,500 union dockworkers yesterday returned after President George W. Bush ended the lockout. The lockout began Sept. 29 over a labor contract dispute.

Reduced Deliveries

Deliveries of vehicles to dealers this month will probably be down about 40,000 Toyota-brand autos and 10,000 Lexus luxury models, Esmond said at a company event in Dearborn, Michigan. "We'll make that up," he said.

Toyota, which ranks fourth in U.S. sales, had expected this month's results to be about the same or slightly higher than last October's 164,084 vehicles.

Toyota imports all of its Lexus vehicles, which sell for $30,000 or more, from Japan. Nissan builds its Infiniti luxury sports sedans and coupes in Japan and has said inventories of models such as G35 sedans and coupes and M45 sedans have declined. Both automakers also have slowed production at their North American factories because of the ports shutdown.

Honda said it suspended production at its East Liberty, Ohio, plant today and plans to halt output at factories in Lincoln, Alabama, and Alliston, Ontario, tomorrow because of parts shortages caused by the ports lockout.