Toyota to resume normal production at year’s end
New York, NY, United States (AHN) – Toyota said on Friday it would maintain limited production until the end of the year. The automaker is working to resolve supply chain issues and a crisis triggered by a tsunami in Japan.
Production levels in domestic plants are currently at 50 percent, while operations outside Japan are at 40 percent. The company plans to begin restoring normal production in local facilities in July. Overseas operations will ramp up a month later due to the time it takes to deliver parts abroad.
Regular operations are set to resume November and December.
President Akio Toyoda apologized to consumers in a press conference and assured them of “unprecedented customer service.” He told dealers and suppliers, “I feel terribly sorry for the hardships we may have caused you.”
Toyota will continue obtaining parts from its usual suppliers but is considering substituting parts from other companies. There are about 150 parts affecting assembly lines for new cars. The parts are mostly electronics, rubber and paint-related.
The North America unit, which is operating at 30 percent, said there are no plans for layoffs in plants. Production in North America was not suspended after the March 11 quake in Japan. But the unit took steps to conserve parts. It also suspended overtime work and stopped operations for five days last week.
Parts for the dozen Lexus and Toyota models built in the United States are sourced from 500 suppliers in North America. The automaker last month resumed shipments of parts to the United States and began production in Japan of Prius and Lexus hybrids, for which U.S. demand is high.
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