Toyota Cuts May Auto Production in North America

AutoInformed.com

It only takes one missing piece out of tens of thousands to stop a production

Toyota Motor Engineering & Manufacturing North America (TEMA) will once again adjust production downward – this time in May – due to parts shortages following the 11 March Japan earthquake and tsunami.

Previously, TEMA had announced production suspensions on Mondays and Fridays during the April 15 through April 25. TEMA will continue the Monday and Friday production suspension pattern during the period April 26-June 3. During the same period, production will run at 50% on Tuesday, Wednesday and Thursday.

On average, around 85% of the parts and materials for the 12 North American-built Toyota and Lexus models are sourced from 500 suppliers in North America. While production of some parts and materials continues in Japan, Toyota says it is working closely with affected suppliers in order to minimize the impact, which appears to be considerable and ongoing.

In addition Canadian auto plant production will be suspended the week of May 23 in conjunction with the scheduled Victoria Day holiday. U.S. production will be suspended the week of May 30 to coincide with the scheduled Memorial Day holiday.

On these non-production days, Toyota will continue to provide employment for its approximately 25,000 regular North American team members in keeping with previous Toyota practices. Team members may report to work for training and plant improvement activities, use vacation, or take unpaid time off.

“We are trying to continue production as much as possible and keep our workforce intact in order to facilitate a smooth transition back to full production when all parts are available,” said Steve St. Angelo, executive vice president of TEMA.

Production plans beyond June 3 will be determined at a later date.

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