Toyota North America COO on New RAV4 Launch, Tariffs, and Pricing

New Vehicle Launches

• 🚀 Toyota is launching seven new vehicles this week, including the highly anticipated new RAV4.
• 🎯 The new RAV4 aims to improve upon the current model, which has been the bestselling compact SUV for eight years and the number one selling vehicle overall last year.

Manufacturing and Investment in the US

• 💡 Toyota has invested $50 billion in the United States over nearly seven decades, with 14 plants across North America, 11 of which are in the US.
• 🇺🇸 While the RAV4 will continue to be built in Kentucky and Ontario, Canada, with some coming from Japan, more units will be built in Kentucky with the new generation.

Impact of Tariffs and Inventory

• ⚠️ Toyota is currently in a "wait and see" approach regarding tariffs, but is not currently worried about pricing due to extremely low inventory levels.
• 📈 The company's dealers end every month with only a 10-day supply of cars, and demand consistently outstrips supply, with plans to build 200,000 more cars this year than last.

Future Pricing and Industry Concerns

• 📉 25% tariffs are unsustainable for any automaker, and prices are expected to rise across the industry once other automakers deplete their current inventory.
• 🗓️ Widespread price increases are anticipated to begin as early as June, as automakers adjust to lower inventory levels and the impact of tariffs.
• ⚙️ The administration understands the complexities of the auto industry, including capital intensity, long product development cycles, and supply chain fragility.