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Toyota cuts car-delivery time to two weeks

"People want almost instant gratification, and two weeks is about the longest many are willing to wait for their vehicle."

Art Spinella, president of CNW Marketing Research

Toyota Motor Corp, the fourth-largest automaker in the US, said it can now deliver custom-ordered cars and trucks in as little as two weeks. An analyst said that's three times faster than US-based competitors.

The system, which connects dealers to factories and was in development for five years, lets buyers pick the color and options on the nine models built at its four North American vehicle assembly plants, said Atsushi Niimi, head of Toyota's manufacturing in the region. That cuts the cost of dealers having vehicles that consumers don't want, he said in a speech.

"If they can do this, it's a big deal," said Jeff Schuster, director of forecasting at J.D. Power & Associates, which collects auto-industry data. "It takes the domestic automakers six weeks on average."

Toyota, which gets as much as 80 percent of its operating profit in the US, is looking for ways to take more market share from larger rivals General Motors Corp, Ford Motor Co and DaimlerChrysler AG's Chrysler unit. Toyota in this year's first seven months increased its US share to 11 percent from 10.4 percent in the same period last year.

Before the new system, Toyota's dealers weren't able to communicate directly with factories and a custom-ordered vehicle might take months, spokesman Dan Sieger said. Niimi, who spoke at conference, wouldn't give further details.

"The ability to deliver custom-ordered vehicles within two weeks is what's significant," said Art Spinella, president of CNW Marketing Research said. "People want almost instant gratification, and two weeks is about the longest many are willing to wait for their vehicle."

Giving customers quicker access to vehicles with the features they want also may help Toyota increase its advantage in incentives such as rebates and loan discounts, Schuster said.

General Motors led incentive spending in July with an average US$3,994 per vehicle, followed by Ford at US$3,986, according to CNW Marketing Research. Toyota's per-vehicle average was about US$2,413, CNW said.

Asian auto brands, led by Japan's Toyota, Nissan Motor Co and Honda Motor Co, boosted their combined US share to 32.5 percent this year through July, from 31.1 percent in the same period last year, according to Autodata Corp The three US-based automakers' share fell to 60.5 percent from 62 percent.
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