Nagoya – Toyota Motor Corp. will withdraw from the U.S. subcompact car market, it was learned Thursday.
Currently, the Yaris is the only subcompact car sold by the automaker in the United States. Toyota will stop selling the model once stock runs out, according to informed sources.
The company will narrow its product range for the U.S. market, where larger vehicles such as SUVs are more popular than subcompact cars, the sources said.
Toyota outsources the production of the Yaris to a Mexican plant of Japanese partner Mazda Motor Corp. The model’s production for the U.S. market ended in June.
The plant, which also manufactures the Yaris for shipment to Canada and Puerto Rico, will cease production in August and November, respectively.
The subcompact car market in the United States has been shrinking, and the tendency has been forcing automakers doing business in the country to review their strategies.
Last year, Toyota stopped selling the Aqua subcompact car in the United States and limited its subcompact lineup for the U.S. market to sedan and hatchback models of the Yaris.