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Quake to force shutdown of all US Toyota plants

Discussion in 'General Automotive' started by BERTHDZ, Apr 5, 2011.

  1. Apr 5, 2011 at 6:58 AM
    #1
    BERTHDZ

    BERTHDZ [OP] KF5TUQ

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    Not sure if this is the correct place to post this but check out this story:

    Link to article: http://www.cbsnews.com/stories/2011/04/05/business/main20050722.shtml?tag=stack


    (AP) LOUISVILLE, Kentucky — Toyota Motor Corp. said Monday that it's inevitable that the company will be forced to temporarily shut down all of its North American factories because of parts shortages due to the earthquake that hit Japan.

    The temporary shutdowns are likely to take place later this month, affecting 25,000 workers, but no layoffs are expected, spokesman Mike Goss said. Just how long the shutdowns last or whether all 13 of Toyota's factories will be affected at the same is unknown and depends on when parts production can restart in Japan, he said.

    Video: Japan quake killing U.S. new car supply
    Complete coverage: Disaster in Japan

    So far the North American plants have been using parts in their inventory or relying on those that were shipped before the earthquake, Goss noted. But those supplies are running low.

    "We're going to get to a point this month where that gap in the pipeline starts to show up. So we'll have to suspend production for a while," he said.

    A March 11 earthquake and tsunami damaged auto parts plants in Northeastern Japan, causing shortages that idled most of the nation's car production. Japan's daily auto output has fallen by more than 500,000 vehicles since the disaster, says Scotiabank Senior Economist Carlos Gomes. Some manufacturers are bringing plants back on line, but only at low speeds due to a lack of parts.

    Shortages of parts from Japan are also affecting manufacturers outside the country. Just last week, Ford Motor Co. and Nissan Motor Co. said that several North American plants would be closed for part of this month, and Chrysler CEO Sergio Marchionne has said his company will see disruptions.

    Toyota only gets about 15 percent of its parts from Japan for cars and trucks built in North America, "but still you have to have them all to build the vehicles," Goss said.

    Goss spoke Monday ahead of an appearance in Louisville, Kentucky, by Toyota's head of North American operations. Toyota has about 500 companies supplying parts in North America, but many of them get components from Japan that might not be available, he said. During the shutdowns, workers will focus on training and reviewing operations for ways to improve. They also can take vacation or time off without pay.

    The shutdowns will affect all Toyota and Lexus models made in North America, he said. Already several large dealership chains are predicting shortages of models from Japanese automakers in the spring and summer.

    Goss wouldn't estimate how long the assembly lines would be shut down. "It depends on how fast we can help get those suppliers up and running again in Japan," he said. "Things change every day and we're trying hard to minimize any disruption to our production in North America."

    Toyota is running short of multiple parts, mainly electronics and paint pigments, said Yoshimi Inaba, chief operating officer for North American operations. The company is looking for alternate parts suppliers. He also said it's too early to predict the impact on Toyota's sales and its effort to rebound from a string of safety recalls last year that have hurt sales.

    "We have some inventory. So if the disruption on the production is short enough, then it wouldn't have any major impact," he told reporters after appearing at a literacy event in Louisville. "It is too early to predict how big the impact is."

    Toyota last month warned that production cuts were possible at some North American factories, but said it didn't know when or for how long.
     
  2. Apr 5, 2011 at 7:02 AM
    #2
    paintdiddy

    paintdiddy Machine gun shits

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    I guess the price of Toyota will go up cuz of demand
     
  3. Apr 5, 2011 at 7:03 AM
    #3
    tacomakid96

    tacomakid96 Can you skin Grizz, pilgram?

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    That means the 2011's are going to be rare! Lol
     
  4. Apr 5, 2011 at 7:04 AM
    #4
    BERTHDZ

    BERTHDZ [OP] KF5TUQ

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    Resales will probably go way up also
     
  5. Apr 5, 2011 at 7:06 AM
    #5
    paintdiddy

    paintdiddy Machine gun shits

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    fuck ill sell mine for a good profit
     
  6. Apr 5, 2011 at 7:58 AM
    #6
    Paul's TRD

    Paul's TRD I'm Not Your F***ing Brother

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    That blows. Well, just thinking, but I bet the American Manufacturers are going to jump on this opurtunity, not there is anything wrong with that, but some peeps are gonna get some good deals I believe.
     
  7. Apr 5, 2011 at 8:58 AM
    #7
    aficianado

    aficianado Well-Known Member

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    Japan took it up the ass by mother nature wearing a strap-on. people died, and are still dying..and will be dying from the disaster for years to come.

    hard to worry about the cost of our trucks and parts, no?

    i think they should just focus on fixing the country and helping the people right now.
     
  8. Apr 5, 2011 at 9:02 AM
    #8
    BrokenTusk

    BrokenTusk I support a velociraptor free workplace.

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    Check Build Thread!!
    I remember reading this thing that most Japanese people are pissed that the humanitarian issues seem to be taking a back seat to the nuclear crisis
     
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