Toyota Motor (TM) has released its plan to raise production in the U.S. for its pickup trucks as well as fuel-efficient cars by the end of 2009. A recovery in the housing sector and an immense demand generated by the Cash for Clunkers program are the key factors behind the increase in production. Toyota ’s full-sized pickup truck Tundra and mid-sized pickup truck Tacoma saw excellent sales in August. Tundra had its best monthly sales of the year at 7,872 units. Meanwhile, Tacoma sales were up 5% year-over-year to 12,547 units. The increase suggested an improvement in housing demand, as pickups are essentials in the construction industry. Toyota will raise manufacturing capacity of the Tacoma at a California plant. In the meantime, Tacoma production will be shifted to San Antonio, Texas (where Tundra pickups are produced) to ease the transition. Over the coming months, production of ...

Light vehicles sold in the U.S. last month were down 37% from March 2008, whereas February sales had been 41% below year-earlier values. Does a February-to-March increase and smaller year-over-year drop mean that we've turned the corner?

Data source: Wardsauto.com

I think not. Although Americans bought 168,000 more light vehicles in March than in February, the average February-to-March gain over the last five years has been 247,000 additional units. The main reason that the March '08 to March '09 comparison sounds like an improvement over February '08 to February '09 is that March '08 was the beginning of the big downturn in auto sales. From that fact alone, we should continue to see improving year-over-year comparisons in subsequent months, particularly for domestically manufactured light trucks, the segment hit hardest by last spring and summer's gasoline price spike.

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