Saturday, April 16, 2011

Japan: Toyota cuts production in half

Toyota will cut its production by half from May 10 to June 3 The Japanese automaker announced its decision addressing the problems faced by its suppliers since the earthquake and tsunami of 11 March. The disaster has halted the work of many suppliers in the devastated region of north-east, disrupting the activity of the world's leading manufacturer.

Between March 11 and April 8, Toyota estimates that 260,000 fewer cars than expected came out of its assembly lines. The manufacturer has also just partially restart its assembly lines, which will also run at 50% of 18 to 27 April, before stopping for the traditional spring holiday until 9 May inclusive.

This reduction in output impact other countries. The group was forced to freeze its production about a week in North America and Europe by early May as he struggled to supply spare parts in its assembly plants. In France the plant Onnaing in the North, which has suspended production for eight days in late April and early May.

In a factory in Australia, working time will be halved. The effects are even more devastating as Toyota is the specialist system "just in time", a technique to minimize the stocks that exceed usual one month of production. Toyota is not the only manufacturer to meet these challenges: the entire Japanese auto industry is affected by these supply problems.

Consequence: the vehicle production in the archipelago is expected to fall 14% this year to 7.75 million vehicles after the U.S. bank JP Morgan. Several foreign automakers clients Japanese suppliers, including American, have also had to resort to a slower pace of production. A full recovery of their activity seems unlikely in the short term.

According to experts, the difficulties of the chains should last for months.

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