First off, this is not a story about a company struggling to remain relevant. Toyota has been suffering sales decreases steadily all year for one reason only, the production interruptions created by the earthquake and tsunami in Japan.

Due to production issues, Toyota saw its American sales dip from 147,162 units in September, 2010 to 121,451 in September, 2011. The overwhelming reason was that dealers only had limited inventory to sell. That trends has begun to reverse. Toyota now has a 30 day supply of cars at its dealerships with plans to increase that to 45 days or more by the end of the year according to Bob Carter, group vice president of Toyota Motor Sales.

With plenty of Prius Vs, Camrys, and Scions on the lots, dealers should have trouble keeping up with the customers on the lot. Toyota is probably right in its belief that increased inventory is all that is needed to reverse sales declines this year.