Part 3/7:
Supply Chain Issues and Inventory Glut
As a consequence of poor sales, many dealerships are left with an abundance of unsold inventory. Brands like Toyota have reported a 21% drop in sales, particularly due to concerns over the safety recalls and reliability of its new truck models, including the Tundra. Reports indicate that some trucks, like the Tundra, are sitting on dealership lots for over 220 days, a clear indication of consumer reluctance.
The situation is exacerbated by manufacturers such as GM and Ford, who have shifted vehicle production to lower-cost countries like Mexico, ostensibly to lower operational costs. However, these savings have not translated into lower prices for consumers, leading to frustration among buyers.