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Toyota Plans For North American Production Cutbacks

March 25, 2011
1 min to read


Toyota Motor Corp. expects to halt some auto production at its plants in North America as a result of parts shortages stemming from the earthquake in Japan, the Japanese auto maker told employees on Wednesday.


"Our supply line has reached a point where it is clear we will incur some non-production time," the company's North American manufacturing arm said in a memo to workers. "The amount of non-production is still uncertain."


The company said that the March 11 earthquake and tsunami that struck northern Japan cause "extensive damage" to many of parts suppliers that provide components to Toyota and other auto makers, reported The Wall Street Journal.


It added that "as of this time, we have an ample supply of most products, our ships continue to deliver vehicles to North America, we have reopened our parts plants in Japan and we are doing all we can to ensure our dealers have products available for customers."


Toyota later released a statement saying it was "too early to predict location or duration" of the production shut downs.


The company said it is still receiving some parts that were in transit from Japan before the earthquake and that the majority of parts for its cars built in North America come from a network of 500 local parts makers.

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