Toyota, Honda announce production cuts in North America

Apr 09, 2011 |

IANS

Toronto

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Toyota and Honda Motor Company on Friday announced production cuts at their assembly operations in Canada and the US because of the shortage of parts caused by the disaster in Japan.

Toyota said it is adjusting North American production due to parts shortage following the March 11 earthquake.

As a result, all its Canadian and US assembly plants will be shut for five days - barring the Kentucky plant that will close for four days - between April 15 and April 25.

Toyota said its 'North American vehicle plants will operate on a reduced schedule, with production suspended on April 15, 18, 21, 22, and 25. Most of the company's North American engine and component plants will follow the same schedule. Future production plans will be determined at a later date'.

Though the car major sources 85 per cent of the parts and materials for its 12 North American-built Toyota and Lexus models from 500 suppliers on this continent, Toyota executive vice president Steve Angelo said, "The situation in Japan affects many automakers and many other industries. Extraordinary efforts are under way to help suppliers recover."

Toyota follows Honda which also said Friday that 50-percent production cuts at all its North American plants will be extended through the week of April 18.

Honda said: "The unstable parts supply situation in Japan is impacting our ability to operate our automobile plants here in North America at full strength. We have announced that temporary levels of reduced production will continue through the week of April 18-22."

But 'we anticipate that additional production adjustments will be required after that date. In short, this remains a very fluid situation'.

More than 80 per cent of Honda and Acura products sold in the US are produced in North America itself, with more than 600 local suppliers providing majority of the parts and materials.

"However, for global efficiency, a few critical parts continue to be supplied from Japan," Honda said.

The car giant expected its associates in Japan to resume production April 11.

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