Consumers are still having a hard time finding new cars in 2023 because of supply chain issues and high demand for new vehicles. At the 2023 NADA Show, Toyota warned its U.S. dealers that inventory would remain limited for the first part of 2023, reports Wards Auto. For Sequoia drivers, this means wait times as long as one year for certain models.
David Christ, Toyota’s group vice president and general manager of the Toyota Division, spoke at the NADA Show and provided some information on its inventory issues. The automaker claims that it’s hard at work on rebuilding its new-vehicle inventory as quickly as possible, but believes the situation won’t improve quickly.
“We’re going to build every one we can get parts for,” said Christ. He told Wards Auto that the average U.S. dealer ended with 2022 with just a five days supply of vehicles. The low inventory is due to high demand and supply-chain issues.
Before Toyota works on building inventory at dealerships, the automaker will be trying to get vehicles into shoppers’ hands. “What we tell the dealers is, ‘You may be getting more cars, but you’re not going to see a stock increase at first,’” because most of the cars arriving at dealerships will be pre-sold and go straight to customers. “We’d much rather park them in (customers’) driveways than in a dealer’s lot.”
According to Christ, customers are waiting a long time for their vehicles. Consumers that purchased a Toyota Sequoia could be waiting for up to a year. The full-size Sequoia was never stocked in large numbers to begin with, so current supply chain issues have made the situation more precarious.
Toyota introduced a fully-redesigned Sequoia for the 2023 model year. The previous generation of the Sequoia was introduced in 2008 and ran until 2022. So, people were eagerly waiting for Toyota to come out with a new Sequoia.
The third-gen Sequoia marks a massive improvement over the previous generation of the Sequoia with a more upscale cabin, high-tech features, and a standard 437-horsepower hybrid powertrain. The SUV is available with a 14-inch touchscreen and comes with a 12.3-inch digital instrument cluster, which is a massive improvement over the previous seven-inch screen. Instead of a 5.7-liter V8 engine, the 2023 Sequoia comes with a twin-turbo 3.4-liter V6 engine that’s paired with an electric motor. It may be a hybrid, but the powertrain produces more power than the outgoing V8.
While the Sequoia still trails other full-size SUVs in key areas like space in the third row and on-road handling. Still, the Sequoia has always been a popular choice with Toyota fans that want a reliable, full-size SUV for the entire family.
Source: Wards Auto
As an automotive industry expert deeply immersed in the latest trends and developments, it's evident that the challenges faced by consumers in acquiring new cars in 2023 are rooted in the ongoing supply chain disruptions and the persistent high demand for new vehicles. The 2023 NADA Show served as a crucial platform for industry leaders to address these issues, with Toyota taking a prominent role in acknowledging and warning its U.S. dealers about the continued scarcity of inventory in the first part of 2023.
At the NADA Show, David Christ, Toyota's group vice president and general manager of the Toyota Division, provided valuable insights into the inventory challenges. Toyota's commitment to rebuilding its new-vehicle inventory is clear, as Christ emphasized their dedication to producing as many vehicles as possible, working with the parts they can acquire. This commitment is underscored by the acknowledgment that the average U.S. dealer concluded 2022 with just a five-day supply of vehicles, reflecting the severity of the inventory shortage.
The supply chain issues, coupled with high consumer demand, are highlighted as the primary contributors to the current low inventory levels. Christ's statement that the situation won't improve rapidly suggests a prolonged challenge for both the industry and consumers.
One specific impact on consumers, especially Sequoia drivers, is the extended wait times for certain models, reaching as long as one year. The scarcity of the full-size Sequoia was exacerbated by the fact that it was not heavily stocked to begin with, making the supply chain issues even more pronounced for this particular model.
Toyota's strategy to prioritize delivering pre-sold cars directly to customers rather than increasing dealer stock immediately is a pragmatic approach to addressing the immediate needs of consumers. This tactic aligns with the understanding that consumers are already facing lengthy waiting times for their vehicles, particularly those who have purchased a Toyota Sequoia.
Speaking of the Sequoia, the article sheds light on the release of the fully-redesigned 2023 model, marking a significant improvement over its predecessor. The third-generation Sequoia boasts an upscale cabin, high-tech features, and a powerful hybrid powertrain, a departure from the previous V8 engine. Despite certain shortcomings in comparison to other full-size SUVs, such as third-row space and on-road handling, the Sequoia remains a popular choice among Toyota enthusiasts seeking a reliable, family-friendly SUV.
In summary, the challenges in the automotive industry, particularly the scarcity of new vehicles in 2023, are intricately tied to supply chain issues and sustained high demand. Toyota, as a key player, is actively addressing these challenges, with a focus on rebuilding inventory while acknowledging the extended wait times for consumers, especially those interested in the redesigned Sequoia.
