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Toyota To Continue 50-Percent Production Until June

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On: Tue, Apr 19, 2011 at 10:39AM | By: Chris Weiss


Toyota To Continue 50-Percent Production Until June

Toyota restarted production at its 18 Japanese facilities as of this past Monday. While that was good news, the bad news was that it was going to run at only 50 percent of its usual production capacity. Later in the week, Toyota announced that it will continue work at 50 percent capacity until at least June 3.

The update brings a little more insight as to how last month's disastrous events will continue to affect the Japanese auto industry for months to come. When Toyota originally announced that it was restarting production in Japan, it said that it would work at 50 percent through April 27, at which point it would take an already scheduled spring break until May 9. The automaker wasn't sure at that time what would happen after break, but is now confident that 50-percent production rates will continue for three weeks after break ends.

The reduced schedule is expected to cost Toyota as many as 120,000 vehicles. That's on top of at least 260,000 lost vehicles, a number that Toyota reported as of April 8.

What will happen beyond June 3 is still a mystery. According to a Toyota spokesman consulted by Auto News, Toyota is experiencing shortages on 120 separate parts. Its fate will continue to be at the mercy of the parts supply infrastructure.

In addition to the slowdown in Japan, Toyota will be closing certain plants in North America and Europe for certain days this month and next. It will also cut production at an Australia facility by half between May 9 and May 31.

For a fuller picture of how the global auto industry has been affected, Auto News has put together a brand-by-brand rundown of the effects on the industry since the earthquake of March 11.




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