### The RAV4 Conundrum: Toyota Dealers Struggle to Fill the Void As the automotive industry continues to navigate the complexities of supply chain disruptions and pandemic-related demand, Toyota dealers are facing a unique challenge. The Japanese automaker's compact crossover, the Toyota RAV4, has been a stalwart seller for years, but production has been halted at three assembly plants in Kentucky, Ontario, and Japan due to the ongoing shortage of semiconductors and other critical components. With sales of the RAV4 expected to remain strong, Toyota is urging its dealers to think outside the box to make up for the lost volume. ### The Impact on Dealerships According to David Christ, group vice president at Toyota North America and head of the Toyota brand, dealers are being asked to diversify their sales efforts to include other vehicles. "Right now, the majority of our stocks are pickup trucks, so we can do that ...
### The RAV4 Conundrum: Toyota Dealers Struggle to Fill the Void
As the automotive industry continues to navigate the complexities of supply chain disruptions and pandemic-related demand, Toyota dealers are facing a unique challenge. The Japanese automaker’s compact crossover, the Toyota RAV4, has been a stalwart seller for years, but production has been halted at three assembly plants in Kentucky, Ontario, and Japan due to the ongoing shortage of semiconductors and other critical components. With sales of the RAV4 expected to remain strong, Toyota is urging its dealers to think outside the box to make up for the lost volume.
### The Impact on Dealerships
According to David Christ, group vice president at Toyota North America and head of the Toyota brand, dealers are being asked to diversify their sales efforts to include other vehicles. “Right now, the majority of our stocks are pickup trucks, so we can do that today, and we’re trying to do that,” Christ told Automotive News. However, when it comes to the low inventory of cars, Christ noted that it’s a more uncertain prospect. “But as far as the low inventory of cars, that’s going to be more determined as the year progresses than anything we can really count on right now.”
### The Consequences of Low Inventory
The resulting low inventory has had a ripple effect on the car market, with some Toyota dealers adding significant markups to new RAV4s. In some cases, the prices have risen by nearly $5,000, a move that many consider predatory. The practice has left customers feeling frustrated and taken advantage of, highlighting the need for dealerships to prioritize transparency and fair pricing.
### A New Era for Toyota Dealers
As the automotive industry continues to evolve, it’s clear that dealerships will need to adapt to survive. With the RAV4’s popularity showing no signs of waning, Toyota dealers are being tasked with finding innovative ways to meet demand. Whether it’s by promoting other models or offering competitive pricing, the stakes are high for these businesses. As the market continues to shift, one thing is certain: Toyota dealers will need to get creative to fill the void left by the RAV4.
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