Toyota Motor Corporation has announced that they will keep all 12 of their main production facilities in Japan closed through at least next Tuesday, March 22nd in the wake of the earthquake that measured 9.0 on the Richter scale and the ensuing tsunami.
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Toyota first closed these production facilities on Monday to focus on the relief effort after the earthquake, with the stoppage already resulting in a production decline of 40,000 vehicles. Toyota expects that this down time may cost the company around 95,000 vehicles in total, with the automaker losing around $80 million US dollars for each day they are shut down.
Even though the 12 main production facilities in Japan are shut down, on Thursday Toyota will open 7 plants that manufacturer replacement parts as to supply parts stores and dealerships around the world. These same 7 plants will commence making new car components for overseas production facilties starting on Monday as they try to protect the assembly plants outside of Japan against increased down time due to part shortages.
The key cause in the continued production stoppages at Toyota’s main 12 assembly plants is the intermittent power supply issues, combined with the damages suffered by Tier 1 and Tier 2 suppliers. The nuclear power plant problems since the earthquake in Japan has had a heavy impact on their electric infrastructure and with the amount of power drawn by an automotive assembly plant, Toyota’s decision to keep the plants shutdown until next week comes as another way that they are helping the citizens of the affected area dig out after the string of natural disasters.
Toyota has also announced that their Primearth EV Energy battery plant, where the hybrid batteries for the Toyota Prius are produced sustained only minor damage to the assembly line, although the company still hasn’t indicated as to whether or not the damage will slow production.
Source: Reuters
Other Japanese Earthquake News:
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Nissan updates the world on their post-earthquake status
US auto industry hit by supplier shortages in wake of Japanese Tsunami
Toyota update on damage done by the Japanese earthquake
Honda issues a statement on damages caused by the earthquake and tsunami
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