Toyota Prepares for U.S. Port Strikes

(Reuters) – On Tuesday, Toyota Motor (NYSE:TM) North America announced that it had increased its inventory of vehicles and parts in anticipation of U.S. port strikes that began the same day.

Toyota, which depends on East Coast and Gulf Coast ports for importing everything from vehicle components to fully-assembled cars, stated it was closely monitoring the situation.

Dockworkers initiated a strike, marking their first large-scale stoppage in nearly 50 years, following the collapse of negotiations for a new labor contract.

Jack Hollis, chief operating officer at Toyota’s North American unit, noted: “We built up some extra stock here over the last couple of weeks to help us buy a couple of days’ worth of inventory.”

Hollis also indicated that the company had plans in place to shift to different ports and locations. He warned, “It would just be crippling to the economy if this goes on for too long.”

Additionally, Toyota reported an approximately 8% decrease in third-quarter sales of new vehicles in the U.S., attributed to three fewer selling days this year and inflation affecting buyers’ spending.

Total sales for the quarter dropped to 542,872 units compared to the previous year.