New car manufacturing shortages triggers spike in used car prices: Swift co-CEO
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Toyota says it will ramp up its vehicle production in December to recover from previous cutbacks as coronavirus-induced parts shortages have begun to ease.
USED CAR PRICES WILL CONTINUE TO RISE AMID MANUFACTURING SHORTAGES: SWIFT CO-CEO
The automaker expects to build approximately 800,000 vehicles globally during the month, up from approximately 760,000 vehicles built during the same period a year ago. Toyota noted that its 14 plants and 28 production lines in Japan will be operating normally for the first time since May.
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"We would like to express our gratitude to all parties concerned for their immense support in helping us maintain production." the company said in a statement. "In response to the continuing shortage of some parts, we will continue our efforts to strengthen our supply chain with our suppliers and will do everything we can to ensure we deliver as many cars to our customers as quickly as possible."
Toyota continues to maintain a production forecast of 9 million units for the fiscal year.
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The announcement comes as the automotive industry's supply has started to improve, but is still being outpaced by consumer demand. October’s seasonally adjusted annual rate (SAAR) for light vehicles came in at 13.1 million, up from about 12.3 million in September and on par with August’s reading.
The average transaction price for new U.S. vehicles sold in October rose 12.9% year over year or $5,266, to $46,036, according to Kelley Blue Book, an Irvine, California-based vehicle valuation and automotive research company.
Toyota North America sold 146,670 vehicles in October 2021, down 28.6% year-over-year on a volume basis. Toyota division sales for the month totaled 124,039 vehicles, down 30.6%, while Lexus division sales for the month totaled 22,631 vehicles, down 15.2%. Meanwhile, alternative-powered vehicles jumped 20.4% to a record 43,160. Total APV sales, which primarily consist of hybrid vehicles, accounted for more than 29% of Toyota North America's total sales, compared to 17.5% in October 2020.
FOX Business' Jonathan Garber contributed to this report
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