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April 10, 2011

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Parts shortages hit Toyota in US

TOYOTA Motor Corp said on Friday that it will suspend production at its North American plants in a series of one-day shutdowns this month as a result of parts shortages caused by the earthquake that hit Japan.

The temporary shutdowns will affect 25,000 workers, but there will be no layoffs, the world's No. 1 automaker said. A March 11 earthquake and tsunami damaged auto parts plants in northeastern Japan, causing shortages.

All 13 of its North American plants will have down time, though the duration may vary at a few plants, Toyota spokesman Mike Goss said. For most plants, the one-day shutdowns will begin on April 15 and end on April 25, the company said.

The North American plants have been using parts in their inventory or relying on those that were shipped before the earthquake. "We are slowing down to conserve parts yet maintain production as much as possible," said Steve St Angelo, executive vice president of Toyota Motor Engineering and Manufacturing North America.

Toyota gets only about 15 percent of its parts from Japan for cars and trucks built in North America. Those parts include electronic and rubber components, and a paint additive, Goss said.

The production shutdowns will total five days - April 15, 18, 21, 22 and 25 - at its North American plants, except at Georgetown, Kentucky, where production will be halted for four days. The Kentucky plant makes the popular Camry, along with the Avalon and Venza vehicles.

Shortages of parts from Japan are also affecting manufacturers outside the country. Ford Motor Co and Nissan Motor Co recently said that several North American plants would be closed for parts of this month.




 

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