Toyota’s European production returned to normal levels

Article by Christian Andrei, on July 4, 2011

The European production of Toyota has normalized in June. It’s even predicted that Toyota will be able to regain its production loss of 40,000 units in the second half of the year. Toyota was affected by the parts shortage that resulted from the disaster in Japan that took place on March 11.

In an interview at the Automotive News Europe Congress, Toyota Motor Europe Vice President of Purchasing Mark Adams said that the company is “confident” that the parts disruption no longer affects its European output.

He said that Toyota Europe’s production loss was mainly from the disruption of the supply of parts like the airbags, engine management systems, ventilation and air-conditioning units. A pigment used in metallic paint was also short in supply.

The disruption had significantly affected European production, as both its European suppliers and the European operations of global suppliers were adversely affected. Adams pointed out that the parts shortage mainly was seen in the Tier 2, 3 and 4 suppliers.

He said that it has been “really hard” to return to its supply chain to determine exactly went wrong and to assist the supplier in finding alternative sourcing quickly.

He also said that Toyota’s Japan operations are running at about 90% of its capacity. For Toyota to achieve a balance, its Japan plants have made some changes to their schedule. For example, the rest days were moved to Thursday and Friday, instead of Saturday and Sunday.

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