Toyota Canada has cut its sales projections by a third and warned dealers that the supply of new vehicles is starting to be choked off as the company feels the effects of the March 11th earthquake that rocked northern Japan.
While Toyota sent two memos to dealers regarding the revised sales forecast, the company refused to comment on the matter. “We have the availability to meet customer needs during our busiest retail period,” Toyota spokesperson Sandy DiFelice told The Globe and Mail. “We put out targets all the time. The dealers use those as a guide and work to exceed them.”
Summer is a busy season for the Canadian auto industry, with May and June typically the busiest months for auto sales. Toyota products are especially popular in Canada, where gas prices are higher than the United States, and the company’s extensive lineup of hybrids and fuel efficient vehicles are well received.
Toyota is also said to be offering dealers financial help to assist them through the anticipated lean periods, allowing them to get funding for vehicle incentives, marketing campagins and lease extensions for existing customers. Toyota will also allow dealers to suspend payments if they hold mortgages with the company’s financial arm, and will offer favorable interest rates to finance the purchase of new and used vehicles for the dealership.
[Source: The Globe and Mail]