Toyota and Ford are both increasing production to prepare for an increase in sales this year. Ford will increase its production by 10% for the 3rd quarter of 2009 and Toyota will add 650,000 vehicles to its planned 2nd quarter production, according to Autoblog.

The news that both Ford and Toyota are planning on an upturn in sales later this year is a glimmer of hope for the auto industry. We need good news right now, considering GM’s bankruptcy earlier this week. Both Ford and Toyota are increasing production in anticipation of a sales boost. An increase in sales means more shifts at their plants, more commission for salespeople, and more money for the struggling companies. All that extra money will go back into the economy and bring us back to prosperity. This is exactly what the country needs, right?

Maybe not.  The sales bump Ford and Toyota have foreseen could just be an increase in market share because buyers will avoid GM and Chrysler cars after the bankruptcies. In that case, all that extra money going into the pockets of Toyota and Ford employees will just mean less for GM and Chrysler workers.

So should we put down the party hats and noisemakers, and put the celebration on hold until we see an overall increase in sales?  Or is this the beginning of the end of the recession?

Toyota and Ford are both leaders in the hybrid market, which gives them a greener image than competitors and helps boost sales even on non-hybrid cars.