Toyota Warns Dealers Inventories Are Getting Tight

Toyota is warning U.S. dealers that it can't guarantee they'll have adequate inventories from May through July, and perhaps longer. Meanwhile, a report finds dealers are getting the highest "transaction levels" in 15 years, thanks to perceived supply shortages.

In a letter to dealers, Toyota Division General Manager Bob Carter said inventory levels are good today but will be getting tighter.

"What we don't know are vehicle production levels for May through July. The potential exists that supply of new vehicles could be significantly impacted this summer," Carter said.

Toyota last week announced it would be running its U.S. plants just three days a week because of uncertainties about parts supplies from quake-ravaged Japan.

The company also said it will have only certain paint colors available and warned dealers that they won't be able to make color changes late in the ordering process.

Toyota said it will be shipping vehicles form Japan once every two weeks.

High prices

Japan's misfortune seems to be an unexpected bonanza for car dealers. A report from CNW Research says U.S. dealers are getting the highest prices per sale in over 15 years.

The report found that dealers are selling cars and trucks for an average 87 percent of the manufacturers suggested retail price (MSRP).

Discounts from the MSRP were about 13 percent in early April, down from 23 percent in 2009, when U.S. auto sales hit 27-year lows.

Discounts may fall even more as new cars and trucks become more scarce because of parts shortages related to the Japan disasters.