Toyota Motor Corp. (TM) asked its U.S. dealers to restrict orders for replacement parts from Japan. The automaker said it could not take orders for 233 parts for Lexus, Scion and Toyota models unless they are specifically required by a customer for repair.
The replacement parts include brake rotors, body panels, shock absorbers and other. They were required for Prius gas-electric hybrid and hybrid version of the Highlander SUV, and the Camry midsize sedan.
Toyota’s decision was based on earthquake and tsunami in Japan on March 11 that killed more than 10,000 people, broke down infrastructure and triggered a nuclear crisis. It also damaged many parts supplying companies’ plants that manufacture key components for cars and trucks in the U.S. and other countries.
On the other hand, Honda Motor Co. (HMC) revealed that it will temporarily cut production at its North American plants from today due to shortages in supply of some engine, transmission and electrical parts.
The automaker will also cut the number of hours in some of its North American assembly lines on a daily basis. However, it did not specify the models that will be affected by the production cut.
Toyota manufactures about 45% of its global output in Japan, more than half of which is exported. However, nearly 70% of its vehicles sold in the U.S. are produced in its 13 plants in North America. About 75% of their parts are sourced from roughly 500 suppliers in North America. The U.S.-made models include Camry and Avalon sedans, manufactured in Georgetown, Kentucky, and the Corolla sedan, produced in Ontario
Almost all the Japanese automakers, including Nissan Motor Co. (NSANY), are plagued by the natural disaster in the country. They have suspended and cut down their production in the wake of plant outages and parts supply shortage.
Toyota posted a 39% fall in profit to ¥93.63 billion ($1.14 billion) or ¥29.86 (36 cents) per share in the third quarter of fiscal 2011 from ¥153.22 billion ($1.86 billion) or ¥48.86 (59 cents) per share in the year-ago quarter. The fall in profit was attributable to lower sales in the Japan, North America and Europe as well as stronger yen.
Consolidated revenues in the quarter dipped 12% to ¥4.67 trillion ($56.74 billion) on the back of a 13% fall in global sales volume to 1.8 million units. Vehicle sales declined 21% to 507,861 units in North America, 31% to 402,476 units in Japan and 5% to 207,621 units in Europe. Meanwhile, sales rose 21% to 334,504 units in Asia and 2% to 349,219 units in Other regions.
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