Toyota will halt production at two South American plants, in May.
They will suspended production in Brazil for two days, and in Argentina for three days.
Honda is considering reducing production in South America as well.
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Toyota expecting parts supply problem to last for months, cutting production in Thailand
Toyota announced that production at its factories will not return to pre-March 11 levels, until December. Toyota expects 2011 production levels to be lower than 2009.
Production in Japan will not pick up until July. Production at all other Toyota plants will remain low until August. And that’s a best guess: “We don’t know how the production recovery curve will shape up.”-Atsushi Niimi, Toyota Executive Vice President
Toyota officials pointed out that in today’s car factories it only takes one missing part to shut down production. Especially when it comes to electronic parts.
Toyota is now cutting production at its Thailand factory by 50%, starting April 25. Honda and Nissan have announced similar cuts at their Thailand factories.
Toyota revises Chinese factory cuts
Toyota will now cut production in China by 70%, the cut back will last until June 5.
A few days ago they originally planned for 50% cuts, until June 3. The problem is lack of parts from disaster stricken Japan.
More details about extended Toyota factory cuts
On Tuesday Toyota announced more cuts for North American factories, now more cuts in Europe and China.
For Europe Toyota announced that they will cut production, after the already scheduled production halt for the end of this month. The reason is lack of electronic parts. Toyota’s Chinese factories will also see production cuts, in some cases production will be down to 30%. The production cuts, around the world, could last past May.
Toyota to cut more North American production
Toyota announced that it will have to continue cuts in production in its North American factories. Continued parts supply problems being blamed.
Factories in Mexico, Canada and the United States will now suspend operations on Mondays and Fridays. Production will be cut in half on Tuesdays and Thursdays. The latest cuts will continue until June 3.
Toyota expects the new cuts to directly affect North American car sales.
Toyota cutting production in China
Toyota announced that they will reduce production in China, to 50%. Parts supply problems are blamed. The reduced production will last until June 3.
Inflation hits General Motors, Ford & Toyota
GM announced, on April 18, that they will increase the price of their vehicles, because of the rising cost of supplies.
GM said it is not related to the parts supply problem in Japan. Instead they blame it on commodities like oil and steel. GM’s price hike will take effect May 2. Toyota and Ford have already announced similar price hikes.
Toyota to halve production in Japan
“As (Toyota) continues to address its production situation in Japan following the disaster, it has decided that vehicle production from May 10 to June 3 will proceed at approximately 50 percent of normal.”-company statement
Basically the situation for “key component suppliers” (parts makers) is still too unreliable to resume full production.
Toyota says it will continue to evaluate the situation, and make the necessary adjustments to production.
Toyota expects more production problems
“Output reduction in Japan and overseas will most likely continue until September.”-Kohei Takahasi, JPMorgan Chase & Co. in Tokyo
Toyota expects to lose 35,000 vehicles from the North American shut down, and that’s spread over five days. The problem is that, because of continued nuclear power issues, it looks like parts supply is not going to improve anytime soon.
Almost 70 percent of the Toyota vehicles sold in the U.S., are put together in North America, but, about 85 percent of the parts and materials come from Japan.
The North American car market is important for Toyota, making up about 60% of their profits.
On April 8, Citigroup downgraded Toyota stock to ‘sell’. Citigroup said the downgrade was because Toyota has not addressed the problems created by the lack of electrical power in Japan. It’s clear the lack of power in Japan will go on for longer than expected.
Toyota says planned North American plant closures will last 5 days in April
“There are problems with parts supply. But each day, we are doing our utmost to improve the conditions so that we can deliver cars to many customers.”-Akio Toyoda, Toyota President
Toyota is having trouble getting around 150 components, but that’s down from 500 components after the March 11 quake.
Toyota said it will halt North American production starting on April 15. It doesn’t look like production will be shut down for five days straight, instead it will be spread out, one day here, one day there.
Assembly line workers may report for training, use vacation days, or take unpaid time off.