Toyota's Production Boost Is No Sign Of Strength

car claw cash for clunkers

Thanks to strong auto demand caused by Japan’s own version of Cash for Clunkers, Toyota (TM) might increase domestic production year-over-year in November, for the first time in sixteen months.

The stock is up over 1% today, and the news fits in with the general storyline of the car industry coming back to life.

Yet unsurprisingly, this higher level of output won’t last long.

Reuters: But Toyota also appears to be considering cutting its daily production back to around 12,000 vehicles, its break-even level, next spring as government measures to promote purchases of new cars are likely to end, putting a brake on demand growth, the newspaper said. Expecting a fall back in Toyota’s production, parts suppliers have remained relatively cautious about the rate of production increase in the coming months

Looks like Toyota remains pretty cautious on 2010 prospects despite whatever temporary boost they received from stimulus.

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