Toyota rents ship for unsold cars

MALMO, Sweden, Feb. 25 (UPI) -- Toyota Motor Co. said it had taken the telling step of renting a ship in Malmo, Sweden, to store cars it cannot sell due to the poor economy.

On-land storage for unsold Toyotas in the area has hit the limit of 12,000 vehicles, the EU Observer reported Wednesday.

"Our vehicle logistics center in Malmo had reached a maximum capacity as core sales in the region have decreased recently," Toyota said.

To deal with the unsold inventory, Toyota has rented a ship owned by transport firm Wallenius Wilhelmsen, so it can nest 2,500 unsold cars on board, the Observers said.

Toyota isn't alone in seeking storage space for unsold products. Chrysler is using a military base in Ontario, Canada, to hold an inventory buildup, the Observer said.

Some EU countries, including Austria, France and Germany, have tried to boost car sales by offering incentives for scrapping older vehicles. The German plan awards $3,000 to car owners who scrap a car at least 9 years old and purchase a new vehicle, the Observer said.