Toyota reduces NAmerica production; cites quake

April 09, 2011 | 17:41

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Toyota announced Friday that it will suspend production in its North American plants for several days this month because of problems supplying parts from earthquake-rattled Japan.

The Japanese automobile manufacturer said production will be suspended April 15, 18, 21, 22, and 25. An exception is the plant in Georgetown, Kentucky, which will still build vehicles on April 21.

"Most of the company's North American engine and component plants will follow the same schedule. Future production plans will be determined at a later date," the company said in a statement.

Toyota had warned that the slowdown was "inevitable" after damaged caused by the March 11 earthquake and tsunami.

"The situation in Japan affects many automakers and many other industries," Steve St. Angelo, executive vice president of Toyota's North America division. "Extraordinary efforts are underway to help suppliers recover.

"We are slowing down to conserve parts yet maintain production as much as possible," he continued in the statement.

Toyota will continue to provide employment for its 25,000 North American workers during the non-production days, the statement said.

Employees "may report to work for training and plant improvement activities, use vacation, or take unpaid time off."

About 85 per cent of the parts and materials for the 12 North American-built Toyota and Lexus models are sourced from 500 suppliers on this continent, Toyota said.

General Motors (GM) and Chrysler recently announced cutbacks, as well, reducing operating hours in the United States.

AFP

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