Aug
25th
Tue
25th
Toyota reportedly to slash production by 10%
This is the rational thing to do.
Cash for Clunkers moved demand forward, so some of the sales these last few weeks will cut into future sales.
The baseline sales rate should pick up a bit naturally just because sales collapsed so far below the historical replacement rate for vehicles. But,
Unemployment will act as a bit of a drag on sales, so everyone may have to wait a bit longer for the auto recovery.
Even after a recovery, there’s no reason to expect the same sales rate as during the bubble.
Also, note that while Toyota is cutting some production in the US, they are increasing some production in Japan.
I am curious what the new sales rates will be for the different automakers when the new models come out. Curious, but not hopeful.
