Toyota has been deeply affected by supply problems caused by last month's earthquake and tsunami, and those problems could slow the automaker's production for weeks or months.

The problem is, it's still too early to forecast exactly how bad that Toyota and other Japanese automakers will be hurt. But it is clear that some sales will be lost, as parts shortages prevent cars from being built.

This situation will shake out eventually, but for now, Toyota suppliers and dealerships will have extra work to do.

The best way that the Toyota stores can deal with the situation is to keep their eye on the news, stay attuned to internal communications, and be direct and honest with customers. Making promises that can't be kept is something that should be avoided.

By providing strong customer service, Toyota dealers can maintain good relationships with their customers, and that will pan out once production returns to normal. Whenever that is.

In a move that's most symbolic since the post is empty, the so-called "car czar" position that was instated by President Obama during the bankruptcies and bailouts of General Motors and Chrysler has been eliminated as part of last week's federal budget cuts.

At least two vehicle research programs will also receive funding cuts.

This news means that the Obama Administration was willing to cut the "czar" position in order to cut a deal.

In a federal budget fight, some things are expendable. In this case, it was the czar position.

[Detroit News]

According to Automotive News, most dealerships are not doing a very good job managing Internet sales leads.

This is perhaps not surprising, thanks to the labor necessary to keep up with incoming leads. There are also dealerships where the culture hasn't yet caught up to contemporary computer-savvy culture.

The take away from all this? Dealerships who are serious about generating sales via the Internet must properly invest time and money, so that they can close sales. With so many possible sales out there, and with the economy struggling so badly, dealerships can't afford to let these leads go to waste.

[Automotive News]

Summer time is rapidly approaching, and so is the summer sales season.

Summer is a strange time for dealerships, as the last of the old model year vehicles sit on lots, awaiting the arrival of the next model year in the fall. The presence of warm weather, combined with the desire to take advantage of incentives, usually increases showroom traffic.

So how can a dealership take advantage? Well, for one, be ready with the right inventory mix. With rising gas prices, fuel-efficient vehicles will be key to sales success this summer.

Encouraging showroom traffic with holiday sales also helps. Increasing advertising might be a wise move as well.

Pricing vehicles from the outgoing model year correctly is also imperative. Even if the incoming 2012 models don't offer much change from the 2011s, consumers will be expecting to pay less. So the key is to lower the price without sacrificing profit.

Consumers might prefer to do other things with their time during the dog days of summer, but for automotive dealerships, the combination of warm weather and lower retail prices might be a good way to drive showroom traffic.