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Toyota To Resume Production Next Week

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On: Wed, Apr 13, 2011 at 10:39AM | By: Chris Weiss

Toyota To Resume Production Next Week

After more than a month of production problems caused by the earthquake, tsunami, and nuclear reactor events of last month, Toyota is poised to restart production. It announced last week that it will begin production at all of its 18 Japanese plants on Monday April 18. The company will not be up to full capacity, however, and plans to run at only 50 percent capacity through April 27.

After April 27, Toyota will enter its normal spring break period. It has not decided how production will run after the spring break ends on May 9 and plans to make that decision a little closer to that date. The company will reassess its parts supplies and decide how to proceed with production.

Toyota also announced a production adjustment here in North America. North American plants will work on a reduced schedule, with production stoppages at all or most of Toyota's North American plants on April 15, 18, 21, 22, and 25.

The auto industry has been one of the main after-stories of the natural disaster events in Japan. While most Japanese automakers were not directly affected by the earthquake or tsunami, hundreds of auto parts manufacturers were. This has affected production in Japan as well as here in the United States. GM and Ford have both had to close certain operations due to undisclosed parts shortages and Japanese automakers like Honda have had to slow production at certain North American plants.

Honda announced last week that it will have to extend reduced production in North America through next week.

Parts shortages are expected to have a continued effect on the industry into the future. Deutsche Bank reports that shortages in electronic safety-related parts could prove a particularly significant obstacle to the auto industry, with vehicle supply shortages causing price increases. According to theAssociated Press, Toyota, the world's largest automaker, has already lost 260,000 vehicles due to production stoppages and slowdowns.

The exact nature of production stoppages and decreased inventory remains unknown. Toyota is unsure when it will be able to resume full production and other automakers are similarly struggling to come up with a plan. They're left at the mercy of parts manufacturers.


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