Toyota Launches New Incentives to Fight Slow Sales

Toyota CamryToyota said today that it will initiate new incentives for key products for June. The news comes after a poor sales showing in May.

Incentives will be offered on many of Toyota’s best-selling vehicles, such as the Toyota Camry, and others, like the Tundra pickup.

The Camry is being offered with 0% financing for 60 months nationwide and lease rates below $200, said Bob Carter, group vice president and general manager of the Toyota division.  That nationwide incentive is significant because Toyota typically offers only region-specific deals.

Zero-percent financing for 60 months will also be available nationwide on the Tundra. Special lease and financing rates will also be available on the Toyota Corolla, Sienna, Highlander, Venza and Avalon.

Although these incentives are offered nationwide, you might find better incentives in your region. You can check regional incentives on Cars.com or use buyatoyota.com to see what’s in your area.

Toyota is ready to offer more incentives now that production on key products is returning to normal levels after the earthquake and tsunami in Japan disrupted normal supplies in March.

In fact, North American production will return to about 70% normal in June, up from only 30% in May, Carter said. About 70% of the vehicles Toyota sells in the U.S. are assembled in the U.S., including the Avalon, Camry, Corolla, Highlander, Matrix, RAV4, Sienna, Sequoia, Tacoma, Tundra, Venza and the Lexus RX 350. However, many of the parts still come from Japan. Camry, Corolla, Sienna and Highlander production will return to 100% normal production levels in June, Carter said.

This is good news for an automaker that suffered a loss of 27.9% in terms of May sales. Not one Toyota product reached the top 10 best-seller list, a place where the Corolla and Camry had been fixtures for decades. The automaker placed fourth in terms of gross sales, behind Chrysler and Ford. Toyota had been battling GM for the mantle of the best-selling automaker before it encountered recall issues involving millions of vehicles.

Toyota blames tight supply for its latest sales results. Supply levels for the Camry (35 days), Corolla (30 days) and Prius (10 days) were much too low to sustain normal sales throughput.

Heading into June, inventories will continue to build up at dealerships, says Carter, and will continue to pick up steam in July and August.

More of the popular Prius hybrid will be available, too, throughout the summer. Toyota expects to get at least 36,000 of the hybrids from Japan in the coming months, which should restore inventory to normal levels.

Prius inventory fell 47.4% in May due to limited supplies. Restoring Prius production remains a top priority for the automaker, Carter said. So if you're shopping for a Prius, it might be wise to wait until more are available.

Comments 

Sheth

This post is incorrect. Ford usually ranks second in sales and its been that way for a while. Ford passed toyota in yearly sales last year and consistently outsells them. These incentives prove inventory wasn't as bad as some thought. They wouldn't launch this type of program this soon if there were no cars to sell. Cruze has 37 supply which is barely higher than the toyota models mentioned here.

Sheth

Still not corrected?

sheth,
Usually means usually, not for the past few months. Toyota and GM have been running 1 and 2 back and forth for the past few years.

Dan

Taking a play out of the old GM playbook, eh?

Sofyan

Funny how they say supplies have been limited but every time I drive by my local toyota dealer i see tons of their crappy models just sitting on the lot collecting dust.

Sheth

Dave:

Incorrect. Ford has been ahead of toyota for a long time now and ALL of this year. Toyota has been in third for a year or two now. Ford has a considerable lead this year. Check the figures yourself. I know cars.com likes to give import brands benefit of the doubt but this is a matter of fact.

Paul V

What a great opportunity to get a great deal! I would much rather spend my money on a Toyota than a Chevrolet. Chevrolet sells millions of cars to rental agencies and it kills the resale value. Shame on Chevrolet for undermining their own cars!

Mike

hahaha ...lol

Sheth

Ford sold 878k unit so far vs 702k for toyota including all brands. Fleet sales were down for gm and ford last month. As I said, toyota is far from being the #2 automaker and I thought this was common knowlwdge. Ford beat them last year as well and the post should be amended to reduce the toyota cheerleading tone.

Sheth

For reference, last year at this time ford was ahead 783k to 706k so as stated earlier toyota hasn't been in the #2 position for quite a while, likely not since 2008 or some time in 2009. The evidence is clear.

Toyota is obviously trying to downplay the never ending parade of defects, delays in reporting, government fines, and a zillion lawsuits alleging coverup. Worse yet, there's evidence that the Recall King has no intentions of changing for the better. As one of Toyota's many dissatisfied customers, I addressed this issue in a recent blog post: http://uc2.blogspot.com/2011/04/latest-toyota-recall-shows-true-colors.html

Next up, Toyota will be blamin' the earthquake for this week's recall of 106,000 Prius units and 34,000 IQs.

Derrick G

@Paul V:

You should be advised that several months ago, it came out that Toyota dumped a large number of Corollas and a lesser number of Carmrys into fleets to have better sales numbers after folks started questioning how Corolla sales had passed Camry sales by such a wide margin that month. Toyota hasn't since discussed their fleet sales, but GM has certainly reduced theirs. 3

Derrick G

Oh, and another GM used to do to kill resale is put big incentives on new models. Sure, this isn't the kind of cash-on-the-hood in the thousands that GM used to do, but it's still a factor.

Sheth

So the post still isn't corrected I see. Wow.

Derrick,

Toyota resale isn't even that great and they don't really note it in advertising. They focus on questionable reliability claims that stem from registration data relating to older cars that are still on the road. As with every company, toyota pr people spin everything. Its sad that media outlets repeat the pr spin as if it were fact. Toyota claims supply issues crippled sales and then announces a blow out sale to move inventory. It makes no sense.

Skankzilla

Dave,

You should offer Sheth a job. With all this free time on his hands and data that clearly trumps yours, he could be quite the asset...

Claude

Derrick wrote the following statement:

You should be advised that several months ago, it came out that Toyota dumped a large number of Corollas and a lesser number of Carmrys into fleets to have better sales numbers after folks started questioning how Corolla sales had passed Camry sales by such a wide margin that month. Toyota hasn't since discussed their fleet sales, but GM has certainly reduced theirs.

That's quite an egregious statement to make without posting any evidence. Posting such a slanderous statement is grounds for liable.

A classmate in my MBA program had to settle out of court last year with Mazda for making similar statements. Be careful what you post.

Sheth

The comment about toyota is accurate. They did not elevated fleet sales after a strong month earlier in the year. How can you warn about posters being accurate when the info posted by cars.com is blatantly inaccurate? The story we are responding to is wrong so its a little late to worry about what an anonymous commenter said.

Jordan

I see Sheth is still spouting his racist views of the Japanese. We all know he's to cowardly to ever say the same things to a Japanese persons face.

pat

@jordan, @Skankzilla and David Thomas - KickingTires Editor

so basically on cars.com if some one shows the facts which are in fact true, labeled as racist!!how about if "Sheth" had said "Oh toyota is always a number one". check this link and accept the fact.http://online.wsj.com/mdc/public/page/2_3022-autosales.html. Always do home work before you open your mouth.

Sheth

Jordans comment is one of the most ridiculous I've ever seen. I've complained that this site is very import friendly at times and the fact that this incorrect post hasn't been changed only supports my sentiments. What's worse is that instead of conceding the error, they double down and suggest I'm making things up. Folks here seem to have a real issue acknowledging that the domestic brands are outperforming the import brands and much of the info presented here seems to convey that things haven't changed much. In fact, things have changed a lot in the last few years. Toyota is #3 and losing share, that's a fact.

Sheth

Excellent link pat. Shows exactly what I was talking about. Ford has been #2 for at least 17 months in a row. If that doesn't count as "usually" 2nd place I don't know what does.

J

Sheth,

You can say all you want, but I would trust cars.com's sources before I trust any of your highly-biased nonsense.
Thanks, and have a great day.
Either give us a solid number proof, or just get out already.

Eric

Sheth is a racist and his comments prove it.

WTF

The Wall Street Journal article isn't reputable enough as a source?

Sheth

@j

Are you serious? A link was posted showing that I was correct. Cars.com has providid no link or anything else to verify dave's comment and you won't see one because he is incorrect. You can verify the numbers for yourself by looking at toyota and ford press releases. The wsj data comes STRAIGHT from the manufacturers. If you claim the link is offering false info you are in fact saying the auto companies are falsifying data. The facts are clear, take it or leave it. Toyota is the #3 automaker and has been for a long time.

J

Sheth,

I am dead serious because I see no links that YOU have posted. Cars.com have a much better reputation than a troll such as yourself to provide with any information.
Hope you know the basic etiquette when trying to rebuttal, YOU are the one that shall provide the sources to prove you are correct. That means give me the damn link and not to make us to go look for it ourselves.
Just get lost already.

WTF

There is no basic etiquette when you care more about proving somebody wrong than the actual information trying to be conveyed.

Sheth,
I do not have time to expand on what usually means in the comments. I did not realize it was 17 months though. It seems the recall woes were just yesterday.
Until the recall woes Toyota was cementing itself as the world's best-selling car company and was routinely a top 3 automakers in the U.S.

Explaining who was where when is not the focus of this story. So we didn't feel the need to expand on it. I will clarify the language.

Sheth

I'm glad the story was amended but I can't believe this was new information. A quick review of the monthly sales totals over the last two years has shown ford has been ahead of toyota. Ford even passed gm in monthly sales twice in the last few years. Ford was ahead of toyota until 2006 or 07 and after a few years they regained their ranking ahead of toyota. This year toyota is #3 in the us and in the world. Vw has surpassed them in global sales after first quarter.

I'm still confused about why folks are dismissing evidence from the wsj. I would think that counts as reputable proof of what I was saying.

The recall crisis is long past, toyota is struggling due to increased competition and a dated lineup.

Derrick G

@Claude,

I apologize. I should have found the reference before posting that. Here it is:

http://www.autoobserver.com/2011/02/january-sales-come-in-at-satisfactory-pace.html

Also see this for a look at how many fleet sales Toyota REALLY has versus the competition:

http://www.thetruthaboutcars.com/2011/01/the-truth-about-the-ten-best-selling-sedans-of-2010/

jstant01

For what it's worth, the use of the word "usually" is highly subjective...just like using "few" versus "several" and vice versa.

I do, however, agree with Sheth's later statements about Toyota losing market share for reasons other than the recall mess. However, I personally think it may be Hyundai that leapfrogs over both Toyota and the domestics. I see a lot of 2011 Sonatas and Elantras tooling around here, and I live in the heart of GM country and the auto manufacturing capital of the U.S. Toyotas have always been popular with liberals and environmentalists too, and they are quickly losing the "environmentally friendly" moniker as one by one their models (other than Prius) are bypassed in terms of fuel efficiency.

Just my two cents, and it's all anecdotal opinion. No facts implied.

Sheth

Well we can say this, for all but a couple years since toyota has been in the us it has ranked behind ford in sales. Until the 2000s toyota was also behind chrysler in sales. The fuel price spikes 6 years ago changed that however. Its safe to say that toyota historically hasn't ranked #2 in sales and it continues not to today. Hyundai and kia did come close to passing toyota but that's only because toyota had a horrible month of may. They will be well ahead of the koreans now that incentives have returned. Mays results were based on lack of incentives, not shortages of product. Truecar.com confirmed that many japanese models were amply stocked going into memorial day.

Daniel

The Chevy Impala and Chevy Malibu are the top selling fleet cars at 73% and 33% percent respectively. That's GM for you. If you can't build a quality car then build a rental!

Derrick G

Not to imply that rental fleets aren't larded with Malibus and Impalas, but it needs to be remembered also that many corporate and government fleets only buy domestic cars. The chances you'll see a police dept. using a Sonata as even an admin car are slim. These fleets buy cars and drive them hard and sell them hung out wet. Therefore, not all of what GM sells to fleets hurt resale. The numbers are telling, but not directly comparable.

Yobe

You must be a product of public schooling if you think fleet sales don't hurt resale value.

Derrick G

Can you read at all? I said cars sold to government and corporate fleets don't really affect resale because those cars are driven to near oblivion and therefore don't compete with new car sales. Anyone looking at a new car isn't going to look at something the local PD or phone company has driven into the ground as an alternative.

pat

@yobe
well said!!lol

Mark of Excellence

Agreed. LOL

DrJJ

Toyota & Honda are miles above the domestics for reliability OVERALL with the Koreans climbing rapidly! GM/Ford doing a beter job and making much better looking rigs, but still lack the engine/drivetrain refinement a bit- I rent them all the time and it's a very noticeable difference-but I'm an Engineer. Chrysler is still crap-but good looking crap!

DrJJ

I read where So Korea has a National problem with kids/students staying up too late (past 10) studying! Also just read 50% of high school students in Potland, Oregon do not graduate from high school! Which country will produce more hamburger flippers-any guess? Wish it weren't so!

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