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Toyota takes advantage of the exotic car market doubly
NEW YORK, July 6 (Reuters) – Toyota Motor’s (7203.T) lean supply chain is a staple of the business school. The performance of the first half of 2021 shows that sometimes a little strategically placed fat can also be beneficial. Toyota sold slightly more cars in North America than rival General Motors (GM.N) last quarter. The stock of semiconductors has kept its factories thriving, unlike most competitors.
Overheated demand, partly due to the US exit from Covid-19, is making a particularly painful time for production shortfalls. America was on track to set a record for vehicles sold and average transaction prices in June according to JD Power. Lack of supply makes customers more eager to buy cars that are available without discounts. Toyota, which has not been hampered by a shortage of chips unlike its competitors, has captured more of this frenetic market.
The Japanese company’s fat stores may already be running out. It asked its suppliers to carry more semiconductors after the 2011 earthquake showed that chips are prone to hiccups. But it said in February that chip stocks could last up to four months. This indicates that the oilier days are approaching once again. (by Robert Serran)
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