US industry isn’t short of buyers right now – just stock to keep them satisfied.
As factory problems on three continents continue to frustrate efforts to capture what analysts are calling hot pent-up consumer demand, U.S. first-quarter auto sales slumped 16 percent for the 11 automakers that reported last week.
“We have tremendous incentive on our end to build and deliver,” David Christ, head of the Toyota division at Toyota Motor North America, told Automotive News. “With consumer demand where it is now, even if we started building full-capacity cars today, it will take us a while to clear these backlogs.”
In announcing its sales results, Toyota thanked its customers “for their patience while we work around the clock to ensure their needs are met.”
Industry totals will not be available until all automakers report. Most companies released March and first quarter US sales results on Friday, April 1st. Ford Motor Co., Volvo, Daimler, Volkswagen, Audi and Jaguar Land Rover will report results this week or later in the month.
Toyota Motor Corp. outperformed General Motors by 5,484 vehicles in the first quarter, despite Toyota’s overall sales decline of 15 percent. Toyota overtook GM as the top US automaker last year.
But it’s hardly a sluggish market. Many retailers have been selling vehicles on a one-in-one-out basis. Almost as soon as a vehicle pulls into a dealer’s parking lot, a customer appears to take delivery.
In this market, “our pace of production matches our pace of sale,” Tyson Jominy, vice president of data and analytics at JD Power, told Automotive News.
The tight sales balance prompted forecasting firms to revise their sales forecasts for the full year. LMC Automotive and JD Power expect US light vehicle sales to total 15.3 million in 2022, up from a previous forecast of 15.9 million. Cox Automotive also lowered its 2022 guidance to 15.3 million from 16 million.