Toyota Motor North America, in anticipation of the U.S. port strikes that commenced recently, has proactively increased its inventory of vehicles and parts. These strikes, the first of this scale in nearly five decades, have caused disruptions along the East Coast and Gulf Coast ports, which Toyota heavily relies on for importing various components and fully-built cars. The company has expressed vigilance in monitoring the situation closely.
Jack Hollis, the chief operating officer at Toyota's North American unit, mentioned that they strategically built up additional stock over the past few weeks to provide a buffer of inventory, allowing for a grace period of a couple of days. Hollis also highlighted contingency plans in place that could facilitate a shift to alternative ports and locations if required. Recognizing the potentially adverse impact on the economy if the strike prolongs, he emphasized the urgency for prompt resolution.
In another aspect, Toyota reported a decline of approximately 8% in third-quarter sales of new vehicles in the United States. Factors contributing to this downturn included three fewer selling days this year and consumer apprehension due to inflationary pressures. The company's overall sales for the quarter totaled 542,872 units, reflecting a decrease compared to the corresponding period in the previous year.
As challenges persist in the automotive industry, Toyota's proactive approach underscores its commitment to mitigate risks and ensure operational resilience amidst external disruptions. The company remains prepared to navigate uncertainties and adapt swiftly to changing circumstances to uphold its market presence and operational efficiency.