Toyota Motor Corp. (TM) has decided to halt production at some of its plants in North America due to a shortage in supply of spare parts from its home country on the back of earthquake and tsunami on March 11 that killed about 10,000 people, broke down infrastructure and triggered a nuclear crisis.
However, the automaker did not specify how many plants will be idled from when. It also did not mention how long they would remain idle.
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.
Toyota has suspended vehicle production at its 11 plants in Japan since March 14. As a result, it has lost production of about 140,000 vehicles till date. However, it has started producing auto parts at 7 domestic plants from March 17.
Other Japanese automakers, including Honda Motor Co. (HMC) and Nissan Motor Co. (NSANY), are also plagued by the natural disaster in the country. Honda has extended its production suspension to March 27 from March 23. Meanwhile, Nissan, which has suspended production until March 20, plans to restart its operations (at less than full capacity) till the inventory of auto parts lasts.
Among the U.S. automakers, General Motors Co. (GM) halted production at an engine plant in Buffalo, New York, and has temporarily laid off 59 of its 623 workers due to the same reason. The Buffalo facility supplies engines for compact pickups, including Chevrolet Colorado and GMC Canyon, assembled in Shreveport, Louisiana. The automaker has already shut down the Shreveport facility last week.
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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