Toyota will extend production cuts in the U.S. due to Thailand floods

Article by Christian Andrei, on November 3, 2011

The flooding in Thailand has prompted Toyota Motor Corp. to extend its production cuts in North America to conserve parts as it experiences disruptions to its supply chain. Overtime at Toyota’s assembly plants in Indiana, Kentucky, Texas and Canada has been canceled. It has also called off a Saturday shift on Nov. 12 at the Kentucky and Canada factories.

Last week, Toyota had canceled one week of overtime as well as a Saturday shift at plants located in Indiana, Kentucky and Canada, and even at its engine plant in West Virginia.

Toyota has not announced when these bans will be lifted. In an internal memo to workers, Toyota said that parts availability from Thailand is currently “not predictable” as it depends on how massive and how severe the flooding would be. The supply of Thailand-built parts like audio systems, switches, diodes and microcontrollers has been crimped.

So far, three of Toyota's plants in Thailand have been shut down. Its Japan plants have also had to cut production.

Because of the flood, Toyota, Honda, Nissan, Mazda and Mitsubishi were forced to suspend local operations because of damage to their plants or those of their suppliers.

Topics: toyota, production

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