The devastating consequences of the March 11 Japan earthquake and tsunami on the country’s auto industry continue to unfold. Today, Toyota Motor Corp. announced that it will reduce its North American production because of the lack of parts. The Japanese auto giant said that over the next few weeks, its American vehicle plants will operate on a reduced schedule, with production suspended on April 15, 18, 21*, 22, and 25. The same goes for most of the company’s North American engine and component plants that will follow a similar schedule.
According to the world’s largest automaker, on average, approximately 85 percent of the parts and materials used on the 12 North American-built Toyota and Lexus models are sourced from 500 suppliers on this continent.
“While production of some parts and materials continues in Japan, Toyota is working closely with affected suppliers in order to minimize the impact,” the company said in a statement.
The company said that on the non-production days, it will continue to provide employment for its approximately 25,000 regular North American staff, adding that employees not required for work “may report to work for training and plant improvement activities, use vacation, or take unpaid time off”.
“The situation in Japan affects many automakers and many other industries. Extraordinary efforts are underway to help suppliers recover,” said Steve St. Angelo, executive vice president of Toyota Motor Engineering and Manufacturing North America. “We are slowing down to conserve parts yet maintain production as much as possible. We appreciate the flexibility of our team members, suppliers and dealers as we work through these issues.”
