Since predicting how allocations would appear in 2022 has been fraught with uncertainty, I decided to delve into the statistics and make an educated judgment. There are numerous presumptions in this estimation. Because of this, you shouldn’t take this material at face value. Since this information is unofficial, it is extremely likely that the real allocations will differ.
The data below is predicated on the following:
- No matter where they are or how many people live there, dealerships receive the same number of vehicles.
- Each state’s sales demand is accurately represented by the number of dealerships in that state.
- All orders can be filled and shipped without delay at the Motomachi factory.
INFORMATION RESOURCES:
Links to my sources are provided below. The number of dealerships in each state was obtained straight from Toyota-approved sources. I discovered conflicting information regarding which states are part of which sales regions. In a 2010 U.S. News article, the areas and the states that made up each one were identified. The map below shows it, albeit with altered names for some of the regions. The map that has been discussed on forums for years is this one.
U.S. News article source for Toyota Regions; Toyota USA for state-by-state dealership counts
A Toyota document from 2017 appeared to show that the regions had altered (see image and source below). The upper peninsula of Michigan appears to have been transferred to the Chicago region, Connecticut looks to have been relocated to the Boston area, and other states, including Delaware and Rhode Island, seem to lack sufficient definition. I was unable to locate any public data to support these adjustments, though. So I decided to use the previously approved region map that is depicted above for the sake of these estimates.
In This Article...
What is the Toyota allocation process?
Toyota uses a computer-based allocation mechanism to create its automobiles. Based on historical sales, the computer decides which vehicle will be produced on the assembly line (pretty sure its last fiscal year). On the assembly line, specific models are made more frequently than other models, trims, or factory packages based on the prior sales.
Why is the Toyota stock so low?
Inventory Deficits Inventory is low, but demand is steady despite microprocessor shortages and the COVID-19 outbreak that stopped manufacturing last year. This indicates that some retailers are charging more than the manufacturer’s suggested retail price in order to profit on the market’s demand (MSRP).
What does “allocating a car” mean?
Each month, dealers are given a set quantity of units to sell out of their dealership. Because they aim to make the most money possible from the automobiles they are allotted, they are less likely to offer you a decent price when they sell a car from their allocations.
BMW may or may not let specific dealers to sell more than their permitted monthly units. A buyer will have to wait till the dealer gets additional units in that they can sell if they’re not allowing a dealer to sell outside of allocations and the dealer has sold all of the cars they were allocated for the month. The buyer can easily acquire a vehicle through the dealership that is not from their allocations if they are allowing the dealer to sell outside of allocations and the dealer has sold all of their allotted automobiles for the month. At this time, the buyer has the best chance of finding a decent price.
But if BMW is enabling a dealer to sell outside of allocations, doesn’t the dealer stand to benefit just as much by selling outside of allocations? I hope I’m asking the right question. Why then are they more prone to record it as a negative?
Which dealership will receive the most GR Corollas?
There won’t be many for dealers to mark up. According to a dealership employee, each dealer anticipates receiving “around three GR Corollas to sell.” The math is correct. There are over 1,500 Toyota dealerships in America.
How are vehicles distributed to dealers?
A manufacturer won’t actually know who or what has booked a car unless you’ve booked a Bentley Continental Flying Spur with the whale pe**s leather, a Rolls Royce Phantom Drophead with the just-right blue hue, or a Pagani Zonda with the optional Carbon Ceramic brake pack. On their assembly line, they just keep stamping out models, loading them onto trucks, boats, or trains, and shipping them to dealers who have placed orders for automobiles. It really is that easy.
As far as I’m aware, the majority of luxury automakers allow consumers to completely customize their vehicles. The list is limitless and includes things like paint color, interior trim, alloy wheels, brake caliper colors, alcantara or cashmere roof lining, etc. Yes, a special car will be created and assigned to you based on your specifications if you book something like that with a million customizations.
There is no difficulty if you are a mango man purchasing another mango automobile. You reserve the car at the dealer, who then makes a request for another one based on the supposition that you will pay or not cancel your reservation. Automobile is delivered to the dealer lot, you view it, and if all goes according to plan, you pay for it. The car is then registered in your name and updated in their main database. The car is given to the person in line behind you if you don’t accept it or if there are financial difficulties. There are no other details to add.
How does the allocation of BMW dealers work?
With an allocation, you may customize your BMW whatever you like; Taylor did this for her svelte M340i. The word “allocation” will come up frequently, and it basically refers to a spot for the dealership to order your automobile. Each dealer receives a varied allocation depending on how much they sell.
How long will there be a Toyota shortage?
(ticker: TM) provided investors with a somber update on Monday. It won’t meet company expectations for the anticipated production.
It’s simply another illustration of how difficult it is for automakers to offer trustworthy advice. Auto investors are grabbing at straws because there is less certainty about the future, and they are hungry for periodic updates even though these increasingly seem to frequently carry bad news. Semiconductors are to blame once more.
Since more than a year ago, the semiconductor shortage has limited global auto production, leading to low new car stocks and record new and used car prices. Automotive investors have been waiting for the worldwide semiconductor shortage to end for several quarters, but neither they nor the auto industry were anticipating the pace at which things would improve.
“According to a Toyota news release, “because to the impact of semiconductor shortages, we have altered our production schedule by roughly 100,000 units globally from the number of units issued to our suppliers at the beginning of the year.”
Toyota currently anticipates producing roughly 750,000 vehicles in May and, on average, 800,000 vehicles each month in May, June, and July. The business has recently sold cars at a rate of roughly 840,000 units each month. The situation doesn’t seem to be improving all that much over time.
The news, meanwhile, doesn’t seem to have stunned investors much. Toyota shares is trading lower by 0.2% internationally.
When discussing the shortfall, auto manufacturer representatives frequently predict that it will get better nine months from the time they speak, but they then frequently have to lower their expectations later.
Paul Jacobson, CFO of GM, stated that he hoped to raise inventory levels to a “by late 2021 or early 2022, a much safer level. That was GM’s way of saying that output would increase by the end of the year.
Production and inventory levels, however, have continued to be modest. Jacobson stated that although semiconductor supply had improved, there was still pressure on semiconductor supply during the company’s fourth-quarter results call in February. Jacob also recently stated at an investor conference “This year, we do not anticipate a significant increase in inventories.
This past week, one of the biggest semiconductor companies in the world, (TSM), released its earnings. In his analysis on profits, New Street Research analyst Pierre Ferragu stated that “Supply and demand are still outpacing one another, and capacity will be limited through 2022.
Are Toyota vehicles hard to come by?
Toyota will reduce its global auto output as a result of the lack of semiconductors. The announcement coincides with Samsung’s announcement that it will spend $360 billion over the following five years to increase chip production and other strategic industries.
According to a statement, Toyota has had to reduce its global production plan from the figures it gave suppliers at the start of the year by tens of thousands of units.
The business stated, “We will continue to make every effort to provide as many vehicles to our clients at the earliest date, despite the challenges presented by the lack of semiconductors, the spread of COVID-19, and other variables that make it difficult to look forward.”
According to the firm, this led to the stoppage of production in May and June for 16 Toyota production lines across 10 factories, out of 28 lines spread across 14 plants.
The report is merely the most recent in a series of shortages brought on by lockdowns and other problems that have resulted in protracted delays in chip shipments, impacting numerous industries.
Volvo blamed chip shortages in April for a 22.1 percent decline in vehicle sales in March compared to the same time last year. This year, according to companies like General Motors, Jaguar Land Rover, and others, there has been a squeeze.
Due to the supply chain’s lack of flexibility, the auto industry was particularly hard hit, but computer and other equipment manufacturers are now feeling the consequences; Dell stated in February that it anticipates the backlog to increase. Chipmaker TSMC issued a warning in April stating that supply issues are expected to persist into 2023.
In the midst of all of this, Samsung revealed its plans to invest nearly $360 billion over the course of five years to promote growth in the biopharmaceutical, semiconductor, and other next-generation industries.
The investment represents an increase of more than 30% over the previous five years, and it comes with the assumption that it would result in the creation of 80,000 jobs, most of which will likely be in Samsung’s neighborhood and will be in the semiconductor and biopharmaceutical industries.
80% of the investment, according to Samsung, will be made in South Korea, and the news includes a 240 trillion won ($206 billion) investment pledge made by the business in August 2021, according to Reuters.
Why aren’t there any Toyotas around?
The biggest automaker in the world, Toyota Motor, has announced intentions to reduce output by 40% in September due to a scarcity of computer chips that the business has been able to dodge up until now.
The business stated that the change will have an impact on 14 sites in Japan and cut output by around 140,000 cars and trucks the following month. Next month, Toyota anticipates producing 80,000 fewer automobiles in the US than originally anticipated. Additionally, the corporation is reducing output in China, Europe, and other nations.
“Toyota warned in a statement that additional shortages brought on by COVID-19 and unanticipated occurrences in our supply chain will impact production at majority of our North American operations. ” Our manufacturing and supply chain teams have actively developed remedies to reduce the impact on production even though the situation is still fluid and complex.
The business anticipates 60,000 to 90,000 fewer automobiles will be produced in North America in August than previously anticipated. The job situation in North America is not anticipated to be impacted by the production cuts, according to Toyota.
Due to the semiconductor industry’s difficulties in restarting vehicle chip manufacturing after last year’s pandemic-related shutdowns, numerous major automakers, including Volkswagen, General Motors, and Ford Motor, started idleing operations several months ago. However, Toyota was mostly unaffected since it had been maintaining substantial inventories of semiconductors and other components following earlier supply issues during a 2011 earthquake and tsunami that ravaged areas of Japan.
However, Toyota’s revelation signals the issue might continue into the following year. Many automakers had been anticipating an improvement in chip availability in the second half of the year.
Due to a lack of components, including computer chips, Ford plans to shut down a plant that produces its highly profitable F-150 pickup truck near Kansas City, Missouri, starting next week. The F-150’s manufacturing facility in Dearborn, Michigan, will continue operations.
Due to the scarcity, G.M. temporarily paused most of its North American truck production this month. G.M. announced on Thursday that certain North American plants might see more downtime. For two more weeks, a facility in Lansing, Michigan, will not be operating. Another in Spring Hill, Tennessee, will shut down after this weekend and be idle until September 6, according to the business.
There will be an additional two weeks of downtime at two G.M. plants in Mexico and one in Canada. Additionally, the Chevrolet Bolt electric car manufacturing in Orion, Michigan will be shut down by the firm the following week.
What is the value of a car allowance?
A car allowance is a one-time payment made to employees to help them buy a car or keep their present one in good working order. The car allowance is seen as a benefit and subject to income tax.
For the tax year 20212022, the cents per kilometer rate is 72 cents. The new rate for 2022/2023 has been determined by the ATO at 78 cents.