It only takes one missing piece out of tens of thousands to stop a production line.
Toyota Motor Engineering & Manufacturing Executive Vice President Steve St. Angelo said in a speech yesterday that Toyota’s North American production has now returned to 100%. The resumption of all car and truck manufacturing – months ahead of initial projections – is welcome news at Japan’s largest automaker, whose U.S. sales through August have declined 16% year-over-year, relegating it to fourth place behind the Detroit Three, while the market grew 10.5%.
Overall, sales of offshore brand vehicles on a seasonally adjusted annual basis (SAAR) were off ~ 400,000 units last month compared to August sales of 2010. This was largely, if not entirely, because of Japanese automaker shortfalls and also with results literally dampened by an American disaster – Hurricane Irene.
In the early confused days after the March 11 Japan earthquake and tsunami, Toyota said normal production wouldn’t resume until November or December of 2011. However, in June, eight of the company’s 12 North American built models returned to 100%, including Avalon, Camry, Corolla, Matrix, Highlander, Sienna, Sequoia and Venza.
Now the remaining four vehicles – Tacoma, Tundra, RAV 4 and Lexus RX 35 – al back in full production. Together, these 12 models account for nearly 70% of Toyota’s U.S. sales. Japan has also resumed full production.
In a statement, Toyota said it would rebuild dealer inventories through the use of overtime and Saturday shifts at certain plants. The company estimates production levels in the fourth quarter will be approximately 15% percent higher than forecasted prior to the earthquake and tsunami.
“Looking ahead, we’re excited about our extensive product launch schedule over the coming months, including the all-new 2012 Camry and Camry Hybrid. I have no doubt that our team continues to be focused on building the highest quality vehicles for our customers,” said St Angelo.
Separately, the company also confirmed that Toyota’s Alabama engine plant begins four-cylinder engine production this month. The Huntsville plant, which already builds six- and eight-cylinder engines for trucks, will build the four-cylinder for Camry, Highlander, RAV4, Venza and Sienna.
Plans for Toyota’s 14th North American plant in Mississippi also remain on schedule with Corolla production due to begin in October. The plant is hiring 2,000 team members. (See also Toyota Increases Fuel Economy and Equipment While Cutting Prices on 2012 Camry – a Gambit to Reestablish Leadership)
