Toyota Motor Corp will slow some North American production because of supply disruptions caused by the earthquake and tsunami in Japan.
The world's biggest automaker told employees and dealers yesterday that it was too early to determine the scope, timing and duration of a slowdown but facilities in the US, its single-biggest market, and in Canada and Mexico are all being considered.
Cindy Knight, a Toyota spokeswoman, said the company had ample supply of most products for the region, adding:
"We are doing all we can" to ensure that vehicles are available to dealers.
"We will continue to work closely with suppliers in North America and Japan to minimize any disruptions to Toyota's overall North American operations," Ms Knight said.
Most parts for Toyota's North American-built vehicles come from about 500 suppliers in the region. The company said it continues to receive parts from Japan that were already in the pipeline, limiting the immediate impact of the disruption there.
Shares of Toyota fell 1 per cent to close at $82.14 on the New York Stock Exchange.
Toyota has suspended production at all of its 12 assembly plants in Japan at least through March 26th. Supply chain disruptions will also force the company to delay introduction of two new additions to the Prius hybrid model.
Toyota ships more than half of its Japan output to overseas markets. It operates nine manufacturing plants in the United States, two in Canada and one in Mexico.
Scores of Japanese manufacturers, including the other big Japanese auto companies, are facing supply chain disruptions after the March 11th disaster.
Reuters