Toyota execs see sidelines packed with would-be new buyers, but…

Toyota’s forecasts are broadly flat compared to a year ago as constraints continue to hold down production rates across the industry.

“The reality is that interest rates will rise and [probability of a recession] Hollis says it’s real pressure trying to limit demand. It’s going to take longer to meet that demand. ”

Hollis said the Toyota brand ended the year with fewer than 20,000 vehicles in dealerships, compared to about 5,500 for Lexus. Better than a few months ago, but still well below normal.

Hollis said Toyota sees incentives, which are down more than 71% across the industry from a year ago, according to TrueCar, are easing. But inventories and sales volumes will remain declining until the supply chain becomes more stable.

said Andrew Gilleland, senior vice president of automotive operations at Toyota Motor North America. “It will be very interesting to see how quickly many brands can recover.There are still many challenges that continue to struggle not only for us, but for many brands to supply microchips. ”

Gillland said that as industry production levels approach historic levels, at least some of the inflationary pressures that have pushed transaction prices should ease. But once consumers can find the occasional bargain again, the pent-up demand will be drawn back into the new car market.

Referring to the seasonally adjusted annual rate, Gilleland said, “There’s no question that our demand is stagnant. If we reach full capacity, it will be 17 million SAAR.” . “We feel there is a lot of demand that we have to capture, but it will be a matter of centralizing the supply chain and producing to our capacity globally.”