Toyota extends production cuts outside Japan.
Still struggling with a shortage of Japanese-made parts, Toyota says it will extend production cuts at its North American “transplant” factories until at least June – but says the move will not result in any layoffs.
Like its Japanese competitors, Toyota has been struggling to get its operations back up to speed in the wake of the March 11th earthquake and tsunami – and subsequent nuclear crisis – that devastated Japan. The maker’s home assembly plants were down for a month, resulting in the loss of over a quarter million vehicles of production.
But the cuts have been extended to other parts of the world, where Toyota’s factories depend on at least some Japanese-made components.
Shortly after the March disaster, Toyota suspended overtime work at its U.S. operations. It now says that from this Friday through June 3 North American plants will operate at half capacity on Tuesdays, Wednesdays and Thursdays and shut down entirely on Mondays and Fridays.
It is unclear whether the maker will be able to resume a normal schedule after that date, as it continues struggling to ensure a steady supply of critical parts.
Toyota isn’t alone. The rest of the Japanese industry has been struggling to resume normal production. But shortages have also impacted Detroit and European makers, including GM, which had to close several plants temporarily, and Ford, which has suspended orders for certain color vehicles that depend on Japanese-made paint pigments.
Paint additives are among the materials Toyota’s North American plants import from Japan, along with electronic and rubber components.
“We are trying to continue production as much as possible and keep our work force intact in order to facilitate a smooth transition back to full production when all parts are available,” said Steve St. Angelo, executive vice president of Toyota’s North American manufacturing, in a statement.
Industry analysts say they anticipate further industry plant shutdowns due to the shortages.
Meanwhile, the crisis is driving up prices, especially on popular Japanese imports, like the Toyota Prius. According to an analysis by TrueCar.com, the cost of that hybrid has risen almost $3,000 recently, though that also reflects the increase in demand for the high-mileage model due to soaring fuel costs.