Toyota to cut Thai output due to Japan quake

BANGKOK, April 22, 2011 (AFP) - Toyota said Friday that it would temporarily slash production at its plants in Thailand because of a shortage of parts in the wake of last month's massive earthquake and tsunami in Japan.

Production at three plants will be suspended on Mondays and Fridays between April 25 and June 4, while the facilities will operate at half capacity from Tuesdays through Thursdays, Toyota's local unit said in a statement.

The company said it would conduct training for its workers during the stoppage time.

Toyota has already announced production disruptions in Japan, the United States, European Union, China and Australia because of the crisis.

The Japanese giant said Friday it expected global production to return to normal by the end of 2011.

Many key component manufacturers in Japan are based in the worst-hit northeastern regions, where facilities were damaged by the 9.0-magnitude earthquake on March 11 or the giant wave that followed.

-- (c) Copyright AFP 2011-04-22

2 nonsense posts removed.

I don't think Toyota's announcement to cut production has anything to do with panic buying. If you've followed the news, Japan has been hit pretty hard by the earthquake and tsunami.

Toyota Announces Production Cut

Toyota Motor Thailand has announced production cuts, citing a limited supply of auto-parts due to the severe natural disasters in Japan. The slowdown will be effective from April 25 until June 4, 2011.

Toyota Motor Thailand's Assistant Managing Director, Wutikorn Suriya Chantananon said that the earthquake and tsunami disasters in northeastern Japan on March 11 severely affected auto-parts makers in the impacted areas, limiting auto-part imports available for auto manufacturing in Thailand.

As a result, the company is considering production cuts in order to match auto-part quantities, starting April 25 and lasting through June 4.

The company will slow car production at the Sum Rong, Gate Way, and Baan Po factories.

Consequently, it will also stop making cars on Mondays and Fridays. It will, however, continue to make cars between Tuesday and Thursday, but at only 50 percent of the normal daily production rate.

Wutikorn said that it will use the downtime for activities and employee trainings in order to increase their potential and readiness for when the situation returns to normal again.

Meanwhile, the company will evaluate and examine the effects of the disasters and will announce their findings after June 4.

Previously, the number one car maker in the world, Toyota Motor Corporation, had announced plans to reduce production in Japan, North America, and China through June 3 and in Europe until the end of May.

They estimate that production will be back to normal again in July for Japan and in August for other countries. The company hopes to be fully operational and produce cars at full capacity worldwide by the end of the year.

-- Tan Network 2011-04-25