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Toyota To Close American Plants In April

From a quietly cheering Associated Press:

Toyota: N. American plant closures likely in April

By Bruce Schreiner, Associated Press Mon Apr 4, 2011

LOUISVILLE, Ky. – Toyota Motor Corp. said Monday that it’s inevitable that the company will be forced to temporarily shut down all of its North American factories because of parts shortages due to the earthquake that hit Japan.

The temporary shutdowns are likely to take place later this month, affecting 25,000 workers, but no layoffs are expected, spokesman Mike Goss said. Just how long the shutdowns last or whether all 13 of Toyota’s factories will be affected at the same is unknown and depends on when parts production can restart in Japan, he said

A March 11 earthquake and tsunami damaged auto parts plants in Northeastern Japan, causing shortages that idled most of the nation’s car production. Japan’s daily auto output has fallen by more than 500,000 vehicles since the disaster, says Scotiabank Senior Economist Carlos Gomes. Some manufacturers are bringing plants back on line, but only at low speeds due to a lack of parts.

So Japan’s earthquake and tsunami managed to do what the UAW has been unable to do for years. (And some might even say, what our UAW-loving administration has also failed to achieve.)

Shortages of parts from Japan are also affecting manufacturers outside the country. Just last week, Ford Motor Co. and Nissan Motor Co. said that several North American plants would be closed for part of this month, and Chrysler CEO Sergio Marchionne has said his company will see disruptions

More good news for the UAW, who have already vowed to bring Ford to its knees for having had the temerity to report a profit last year.

Toyota is running short of multiple parts, mainly electronics and paint pigments, said Yoshimi Inaba, chief operating officer for North American operations. The company is looking for alternate parts suppliers…

And the US simply doesn’t have a versatile enough of a manufacturing base to produce these parts now?

What a sad testimony to our ingenuity and economic decline.

This article was posted by Steve on Tuesday, April 5th, 2011. Comments are currently closed.

4 Responses to “Toyota To Close American Plants In April”

  1. Rusty Shackleford says:

    The AP intentionally misleads the reader.

    Headline: Toyota Says It Will Shut Down North American Plants


    Now, what is one to think when they first read this headline? That maybe Toyota has “given up” and is “packing it in”? Possibly because it has seen the light and realizes it can’t possibly compete with Obama Motors?

    Well, here’s the story:

    LOUISVILLE, Kentucky — A Toyota Motor Corp. spokesman says it’s inevitable that the company will have to shut down its North American factories due to shortages of parts from Japan.

    Yes, and most likely….for good maybe? Read on—

    Spokesman Mike Goss says the shutdowns are likely to take place later this month, affecting about 25,000 workers. But he says no layoffs are expected.

    He says the length of the shutdowns is unknown and depends on how fast earthquake-damaged Japanese parts factories get back in operation.

    Toyota gets about 15 percent of its parts from Japan for cars and trucks built in North America.

    The company has more than a dozen North American factories.

    Goss made the comments Monday before an appearance in Louisville by Toyota’s head of North American operations.

    So, you see, it’s because 15% of the parts that Toyota factories in the US need that is causing the temporary shutdown. But the AP wants us to think it’s permanent and to go buy our cars at OM.

  2. Petronius says:

    This shortage is soon going to effect all auto makers, not just Toyota.

    Merck, a German company, operates the plant in Japan that produces the glossy paint pigments used in most motor vehicles. Merck’s plant is the sole source for these paints, and it has been temporarily closed as a result of the earthquake disaster.


  3. Right of the People says:

    So much for the vaunted “Global Economy” huh? If it truly was a global economy they would have had backup locations producing the same components.

    This is very similar to a situation back in the early ’80s when the Twinsburg, Ohio Chrysler plant had the only sets of dies to stamp out front clips for most of the Chrysler line, the K cars, Omni/Horizon, and the 1/2 ton pickups.

    The UAW members held a wildcat strike that essentially shut down all of Chrysler’s other plants because they didn’t have the parts to complete cars and trucks. Chrysler settled with the union quickly to get production back then moved sets of dies to other plants and within a year, they shut down Twinsburg. It remained closed for over ten years until they finally reopened it in the late ’90s.

    I’m surprised a large manufacturer like Toyota isn’t more diversified. I guess the Japanese are paranoid about stuff like this and thought they were keeping control of things by keeping key components at home. Wonder if they’ll learn from this like Lee Iacocca did?

  4. Tater Salad says:

    Toyota might be closing plants because of an earthquake but the UAW is closing a GM plant because of………………

    UAW members are now picketing the Chevy Volt plant in Detroit while GM still owes the government and taxpayers for the bail-out. Greed at its finest!


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