Toyota to slash Thai output on post-quake disruptions

by **jingjai** » April 22, 2011, 8:38 pm

If you wanted a new Toyota anytime soon, you may have a wait. I have been told there are also long waiting lists for new Honda's.

http://www.reuters.com/article/2011/04/ ... GR20110422

To suspend production on Mondays and Fridays

Production from Tuesdays through Thursdays to run at half capacity.

By Ploy Ten Kate

BANGKOK, April 22 (Reuters) - Toyota Motor Corp's Thai unit plans to temporarily cut output at its plants between April 25 and June 4 due to supply disruptions after Japan's earthquake and tsunami in March.

Production at its three plants in Thailand will be suspended on Mondays and Fridays, while production from Tuesdays through Thursdays will be at half capacity, the company said in a statement on Friday.

No decision has been made on production after this period, it said.

The world's biggest automaker expects its production to make a full recovery by November or December, around nine months after a massive earthquake and tsunami devastated Japan's northeast and disrupted the supply of key auto parts.

In Thailand, Toyota lost the production of about 10,000 units during the first two weeks after the earthquake and analysts expected it would lose more until the company can resume overtime.

On Wednesday, Toyota's Thai unit reported auto sales of 93,008 units, up 48 percent, and a record high for March, but analysts expect the Japan crisis to affect the Thai auto industry in the second quarter due to lower production overtime.

Toyota expects auto sales in April to be maintained, but the quake impact would cause some delays of car deliveries to the customers. (Additional reporting by Viparat Jantraprap; Editing by Vinu Pilakkott)

by **BobHelm** » April 22, 2011, 9:00 pm

It is a world wide thing with Toyota JJ

Toyota production cuts to last until end of the year

http://www.bbc.co.uk/news/13167400

Toyota to suspend North American production

http://www.bbc.co.uk/news/business-13032817

The Honda problem - at least in the UK - appears to be rather shorter term....but still a problem.

Honda halves production in Swindon
Honda is to halve production at its factory in Swindon until the end of May.

http://www.bbc.co.uk/news/business-12985992

by **randerson79** » April 22, 2011, 9:09 pm

Geezz I was lucky. Got my new pickup 3 weeks agos.

by **JimboPSM** » April 23, 2011, 12:28 am

It’s only a couple of days since I gave my opinion on another thread, with regard to the commentary by the MPC at the BoT on the impact of Japan on the rationale for the latest interest rise earlier this week, that:

...... there may be a degree of wishful thinking with regard to the likely depth and duration of the impact of the disruption from Japan

Which may explain why, apart from what appeared to be a kneejerk rise against the USD (which was actually a general fall of the USD against virtually every other currency [courtesy of S & P]) that the interest rate has done precious little to elevate the THB (it has actually fallen against the GBP, EUR & AUD).

In my opinion the interest rate rise only served to minimise the degree of fall in the THB that (my interpretation of current economic conditions indicate) may actually be warranted :-k

by **BobHelm** » April 28, 2011, 8:55 am

It would seem that the parts supply issue is ongoing in Japan.
The real problem would appear to be that factories cannot get back to their former levels of production. This means that a 'quick fix' of just reducing production until stocks/supply is back to normal is not an option. The reduction will continue until the lower level component supply is back to 100%.
Japan is so secretive about somethings it is difficult to get at the truth as to when this will actually be.
From the small amount of facts that this BBC price carry it is quite easy to see that 'the end of the year' for a return to full production is not a pessimistic outlook.
It will also be interesting to see what strategic moves the major Japanese companies make in light of this disaster. If one of the major car manufacturers (just as an example of one industry) had alternative & sound additional sources of supply then they would have been able to make a major financial killing of others inability to supply goods.
It will be interesting to see which countries benefit from a possible change in direction of Japanese manufacturing..

Japan's industrial output posts biggest-ever fall

http://www.bbc.co.uk/news/13218449

Factory output fell by 15.3%, the biggest ever decline in production in the country.

The previous record was an 8.6% fall in February 2009 in the wake of the global financial crisis.

by **Prenders88** » April 28, 2011, 10:58 am

I wonder if Ford in Thailand will take up the slack?

Toyota to slash Thai output on post-quake disruptions