Toyota has announced further production cuts in both North America and in China until at least 3 June. It again cited parts shortages as a result of the 11 March earthquake/tsunami in Japan.
Toyota Motor Engineering & Manufacturing North America previously suspended production on Mondays and Fridays from 15 to 25 April and will now continue this through to 3 June while also halving production on Tuesday, Wednesday and Thursday each week.
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Canadian production will be suspended for the week of 23 May (in conjunction with the scheduled Victoria Day holiday) and US production will be suspended in the week of 30 May (in conjunction with the scheduled Memorial Day holiday).
“No layoffs are planned during this period. [Employees] will utilise non-production time for training and plant improvement activities,” TEMA said.
When Toyota closed its Indiana and San Antonio, Texas truck, SUV and associated engine plants for three months back in 2008 to reduce inventory that had built up during the credit crunch, some furloughed assembly line workers in San Antonio spent two weeks cleaning city parks, removing graffiti, painting benches and fixing fences instead of building trucks while others were in training, or working at other Toyota plants in the US.
“We are trying to continue production as much as possible and keep our workforce intact in order to facilitate a smooth transition back to full production when all parts are available,” said TEMA chief Steve St. Angelo said of the earthquake-related suspensions.
Plans beyond 3 June will be announced later.
Edmunds.com analyst Michelle Krebs said: “This does not come as a surprise. We fully expected to see production disruptions in April and May due to the aftermath of the Japan earthquake and tsunami which have interrupted the flow of parts to assembly plants across the globe. This certainly won’t be the last production cut we see going forward.”
Meanwhile, parent Toyota Motor Corporation (TMC) said production in China would be at 30% to 50% of normal from tomorrow (21 April) to 3 June “due to parts supply difficulties.”
Parts plants are to alter their operations accordingly, TMC said. Toyota-related plants in China will observe the annual July summer holiday period early, from the end of April through to the beginning of May.
