Effect of Toyota problems on US GDP

I think it will be interesting to see how big an impact this Toyota issue is going to have.  The auto SAAR for January will be affected obviously, but the whole supply chain for Toyota will be clogged up now as suppliers for the rest of the vehicle components have to hold back.   Additionally, there will be an effect on local sales taxes where dealerships are located.

Toyota’s U.S. Dealers May Lose $2.47 Billion a Month (Update2) – Bloomberg.com

“As well as the Camry and Corolla, the vehicles that Toyota has prohibited selling include the Avalon, Highlander, Matrix, RAV4, Sequoia and Tundra. The eight models accounted for 106,012 sales in December and about $2.5 billion in revenue to dealers, according to data from vehicle research firm Edmunds.com.”

If a month’s sales are missed, that would reduce the monthly SAAR number by 1.2 million vehicles approximately.  That is a significant impact.

The linked piece below has an interesting analysis of changes in Toyota’s manuacturing practices over the years…the gist is that they started shaving parts specs to save money starting in the 90’s.

Too Good To Be True: How Toyota’s Success Caused Killer Decontenting | The Truth About Cars

A commenter elaborates:

“they let marketing and accounting factions inside mgmt rise in relative power over engineering & mfg. Toyota was always an operations powerhouse more than a ‘marketing machine’ – that all changed after they moved to the US to a great degree

introduction of the Tundra as the pivotal watershed – in and of itself not a bad product but indicative of having lost focus

Korean makers [Hyundai & Kia] and they say the Japanese are now ‘lazy’ wrt design & mfg execution just like the US had become by the 1970s & 1980s”

Toyota’s U.S. Dealers May Lose $2.47 Billion a Month (Update2) – Bloomberg.com

“As well as the Camry and Corolla, the vehicles that Toyota has prohibited selling include the Avalon, Highlander, Matrix, RAV4, Sequoia and Tundra. The eight models accounted for 106,012 sales in December and about $2.5 billion in revenue to dealers, according to data from vehicle research firm Edmunds.com.”

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1 Comment »

  1. Mark David said

    This is interesting,I enjoyed reading your blog nice posting.

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