Toyota cuts this year’s industry outlook for US over supply-chain issues

Toyota Motor on Wednesday reduced its 2022 outlook for the U.S. automobile industry’s new-car sales, due to the struggles in the supply chain caused by the coronavirus and the conflict in Ukraine.

The automaker’s new outlook of 15.5 million vehicles dropped from its prior forecast of 16.5 million, said Bob Carter, the executive vice president of sales for Toyota Motor North America.

“The supply-chain challenges that we’re seeing … will remain with us for a while,” he added.

Carter said the U.S. industry’s sales rate in the first quarter was an annualized 14.3 million, but he is confident about the new forecast.

However, Carter added there is a “downside scenario” of 14.9 million to 15 million sales if the supply chain struggles remain.

Carter said the automaker expects U.S. sales this year for its Toyota and Lexus brands to complete at about 2.35 million vehicles.

Toyota’s day’s supply of automobiles in the U.S. currently stands at less than two against a historic rate of 40 to 45 days.

He expects that to recover in 30 days as the supply chain makes recovery.

“The vehicles are being sold literally before they are built,” Carter said.