Toyota stops production in Japan due to earthquake (4394 Views)

Toyota stops production in Japan due to earthquake

Toyota the leading Japanese car manufacturer in Asia suspends its activities in Japan due to earthquake. According to the Toyota report, the company stops its production due to the spare parts shortage. Toyota supplier Aisin Seiki Co said, the two plants that support to make engine & body parts, semi-conductors and other components production have been stopped since April 14. Recently, Japan faces Earthquake several times that affects Toyota’s supply chain. These earthquakes already killed 41+ people in Japan and caused huge amount of damage.

Not only the Toyota, most of the leading companies in Japan like Honda, Nissan, Mitsubishi, Bridgestone and King of the Electronic industry Sony and much more companies suspended their manufacturing temporarily. The earthquake in kumamoto has also affected restaurants and retailers in the area. Supermarket operator Aeon also shut 27 stores on Sunday. This earthquake not only shakes the Japan’s economy it also creates new trouble to automobile industry in all over the world, because most of the car companies have lots of plants in Japan.

Toyota reported that January-to-March profit slid to £188m from a year earlier. They said their production improvements would not start in Japan until July and we can expect the manufacturing will be starts from the August. But I am not sure about its full recovery.

The expected drop of production is approximately 50,000 vehicles. Toyota had been on its way to a recovery from the recall fiasco, affecting 14m vehicles worldwide. We know the Toyota’s business covers all over the world. They will come quickly and serve the new cars later in this year.

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