A latest report from Bloomberg revealed that car manufacturer Toyota Motor Corporation is upgrading its factories operations in Japan and Canada in order to meet the unexpected surge of demands in the United States market. Toyota's luxury car brand Lexus was also reported to increase its car production in order to cope up with the demands.
Although the increase in demands means higher sales output the slow progress in terms of production will affect the company's overall market performance in the long run. Toyota's President Akio Toyoda is now faced with a dilemma of increasing factory operation or building new factories.
Among the cars facing production problems are the Toyota RAV4 and Lexus RX.
Toyota division group Vice President Bill Fay confirms that the RAV4 failed to achieve its target sales output for 2014. Toyota set the sales target of 300,000 units for last year, unfortunately due to production problems the company only manage to ship out 267,698 units.
Toyota's CEO for North American operations Jim Lentz said in an interview, "We're going to have to look at how the market under RAV4 develops. That's going to be the next growth spurt."
Lexus on the other hand showed increased production last year and has even surpassed its target sales output as confirmed by the company's Executive Vice President Mark Templin.
Toyota is also joining the crossover utility vehicle bandwagon and the CUV market is getting competitive and poses to be an important market in terms of car sales in the next few years, according to Autoblog.
During the Detroit Auto Show, several car manufacturers including Honda, Mazda, Jeep and Chevrolet have revealed their respective products for the CUV market.