Tuesday, April 5, 2011

Toyota to idle North American plants this month

DETROIT: Toyota Motor Co must decide this month which of its North American plants to idle as the automaker grapples with parts supply disruptions caused by the earthquake, tsunami and nuclear crisis in Japan.

The production cuts will likely happen later this month when Toyota's pipeline of auto parts starts to dry up, Toyota spokesman Mike Goss said in an e-mail on Monday, April 4.

Goss said the company did not know how many of Toyota's 13 plants in North America would be affected by the slowdown.

"It's too early to predict location or duration" of the production interruptions, Toyota said in a statement issued Monday afternoon.

In the nearly one month since the March 11 earthquake in Japan, the global auto industry has grappled with shortages of everything from transmissions to paint that are made exclusively in Japan.

Last month, Toyota said it would slow North American output because of parts shortages from Japan. Last year, Toyota built nearly 1.5 million cars and trucks in North America.

The "greatest majority" of parts used to build Toyota's vehicles made in North America come from 500 suppliers in the region, Toyota said.

"We continue to receive parts from Japan that were already in the pipeline, limiting the immediate impact," Toyota said.

In late March, a spokesman for the company's pick-up truck assembly plant in San Antonio, Texas said it was "likely" the plant would be idled.

During a Friday call about March sales, Toyota executives called the situation "very fluid." They said they did not expect delays in North American production this week. - Reuters

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