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Toyota Will Shut Down All Of Its North American Factories Due To Shortages In Japan
Business Insider ^ | 04/04/2011 | Gus Lubin

Posted on 04/04/2011 12:48:28 PM PDT by SeekAndFind

Toyota just announced it will shut down all of its North American factories due to shortages of parts from Japan.

This is a temporary shutdown, which will affect about 25,000 workers. The length of the shutdown is unknown and depends on how fast Japanese parts factories can get back in operation, spokesman Mike Gross told the AP.

Toyota gets about 15 percent of its parts from Japan.

Last month GM's Shreveport plant was shutdown temporarily due to troubles in Japan.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: automakers; factories; japanearthquake; manufacturing; shutdown; toyota

1 posted on 04/04/2011 12:48:40 PM PDT by SeekAndFind
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To: SeekAndFind

Wonder if this is why Obama seemed indifferent to what’s going on in Japan? Hoping that the disaster would disrupt more US jobs.


2 posted on 04/04/2011 12:50:25 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: SeekAndFind

Can’t get the parts from China like everyone else?


3 posted on 04/04/2011 12:50:30 PM PDT by edcoil (Rule One: Fear No Man)
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To: SeekAndFind

Wouldn’t make sense to manufacture the parts in the US if they are used here? Japan will never make up what they have lost. Sounds logical to me, from a business stand point.....just sayin.


4 posted on 04/04/2011 12:51:03 PM PDT by RC2
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To: SeekAndFind

Watch the stock market go up on the news. Watch the “official” unemployment rate go down after all of Toyota’s hourly employees are furloughed indefinitely.

All news is false. It is 1984.


5 posted on 04/04/2011 12:53:07 PM PDT by Freedom_Is_Not_Free (Don't confuse Obama's evil for incompetence.)
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To: RC2

“Wouldn’t make sense to manufacture the parts in the US if they are used here? Japan will never make up what they have lost. Sounds logical to me, from a business stand point.....just sayin.”

Japan is a backwards nation. They still think that it’s WAY better keep some manufacturing jobs at home!


6 posted on 04/04/2011 1:02:58 PM PDT by DesertRhino (I was standing with a rifle, waiting for soviet paratroopers, but communists just ran for office)
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To: edcoil
Sigma Six, Lean just in time manufacturing princples depend on an ever expanding daisy chain of components, each of which is a prerequisite for the rest. In a perfect world, which is no longer the norm due to natural and manmade messes, the plan runs well and no capital is tied up in unneccessary inventories. From raw material components received in, to the point of finished goods being paid for is less than 30 days, usually in 15 days.

It's future in an Obama world of freshly developed hell on earth, kiss low cost manufacturing good bye.

7 posted on 04/04/2011 1:04:35 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: RC2

“Wouldn’t make sense to manufacture the parts in the US...”

Too expensive.


8 posted on 04/04/2011 1:07:07 PM PDT by mark3681
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To: DesertRhino
Lean manufacturing(Toyata's Religion)relies on no inventory of anything. The global suppliers of parts ship only what there are orders for on a daily basis.

Liken it to a restaraunt where every meal ordered generates orders for (1) each, of a chicken breast, teaspoon of butter, potato, loaf of bread, plate, knife fork &spoon, and napkin. The suppliers to the restaraunt have seven minutes to get it delivered to the door of the kitchen. Your meal is to be served in ten minutes, and paid for in one hour.

9 posted on 04/04/2011 1:10:51 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: mark3681

“Too expensive.”

With the more and more Americans out of work, and the price of oil, thus the price of shipping, climbing, that may no longer be the case.

Do you think a Japanese non union worker makes significantly less than the American counterpart?


10 posted on 04/04/2011 1:15:06 PM PDT by brownsfan (D - swift death of the republic, R - lingering death for the republic.)
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To: edcoil

“Can’t get the parts from China like everyone else?”

You can bet that is being ramped up now.


11 posted on 04/04/2011 1:15:43 PM PDT by headstamp 2 (We live two lives, the life we learn and the life we live with after that.)
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To: SeekAndFind

I would rather push a Toyota than ride in a government union motors, so whatever color is available will do..


12 posted on 04/04/2011 1:16:04 PM PDT by org.whodat
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To: Freedom_Is_Not_Free
Good one. Add to that the closing of stores operated by Blockbuster , Quiznos , Borders . B . Dalton etc . The unemployment rate will be 2% according to the administration .
13 posted on 04/04/2011 1:18:03 PM PDT by fantom (,)
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To: SeekAndFind

So where are the Libyan rebels going to get their trucks from now?

14 posted on 04/04/2011 1:18:18 PM PDT by dfwgator
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To: headstamp 2

you’d think they cover with all the counterfeits out there.


15 posted on 04/04/2011 1:19:31 PM PDT by edcoil (Rule One: Fear No Man)
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To: headstamp 2
China is going to have labor and government problems in a decade or so. Logistics and energy will continue to plague China, with certain small regions bucking the trend due to natural advantages such as port access, hydro-electric, and lack of corruption.

My bet is on Vietnam, South Korea if the idiot to the north drops dead, Maylasia, and the Phillipines.

16 posted on 04/04/2011 1:19:38 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: edcoil

Made in china put in japanese boxes in japan.


17 posted on 04/04/2011 1:20:16 PM PDT by org.whodat
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To: mark3681

Is it more expensive to manufacture here or go out of business because of mother nature. Most good companies plan for “what if”.


18 posted on 04/04/2011 1:21:08 PM PDT by RC2
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To: SeekAndFind

Lots of the auto industry will be impacted by the event in Japan. A lot of parts for the automobile may come from that area and will be disrupted for some time.

From an article a few days ago:

As Japan shutdowns drag on, auto crisis worsens...

http://finance.yahoo.com/news/As-Japan-shutdowns-drag-on-apf-2310707063.html?x=0

snips
Car buyers will soon see higher prices and fewer choices. Some car colors will be harder to get because a paint pigment factory in Japan was damaged and shut production. As a result, Ford is telling dealers to stop ordering “tuxedo black” models of its F-150 pickup and Expedition and Navigator SUVs. It’s also shifting away from some reds. The moves are precautionary, Ford said. Chrysler has stopped taking orders for vehicles in 10 paint colors.

Companies will shut down plants as soon as some parts start running out, which could start happening in the next four to six weeks, he said. “You will see it happen almost daily.”

IHS Automotive predicts that one-third of daily global automotive production will be cut. That means about 5 million vehicles worldwide won’t be built, out of the 72 million vehicles planned for production in 2011.

Although most Japanese auto parts makers are not located in the areas that were inundated by the tsunami, between quake damage, electricity outages and water cutoffs, many factories in the region remain paralyzed.

Suppliers could be running again in April, but it could take until May or June for the entire supply base to be back.

end snips..........


19 posted on 04/04/2011 1:25:40 PM PDT by deport
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To: RC2

Most companies back in the late 80s and early 90s moved to just in time delivery. The ability to reduce costs by eliminating inventory was a huge, huge profit maker. So, yes, if something disturbs the supply chain, it can disturb the production cycle.

Just in time works, it is almost always effective, except in a once in a hundred year natural disaster like this.

Things will no doubt be back to normal in a few weeks, but in the meantime there are newspapers to sell.


20 posted on 04/04/2011 1:26:28 PM PDT by Professional
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To: blackdog

Cab you expand a bit on the labor and government problems?


21 posted on 04/04/2011 1:28:27 PM PDT by headstamp 2 (We live two lives, the life we learn and the life we live with after that.)
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To: RC2

Is it more expensive to manufacture here or go out of business because of mother nature. Most good companies plan for “what if”.

Toyota did plan for what if. They said “What if we let the unions in? What if we have to buy our parts from union run manufacturers? Etc., etc....

They rolled the dice. They’ll roll ‘em again. They don’t lose too often.


22 posted on 04/04/2011 1:30:25 PM PDT by mark3681
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To: blackdog

I do understand their “just in time” no-overhead to store excessive inventory process. That wasnt what we were talking about though. I’m pointing out that Japan still manufactures a lot of the parts. They apparently value having some manufacturing jobs at home.

Theres another big nation that has a messianic cult that demands that their manufacturing sector be utterly dismantled.


23 posted on 04/04/2011 1:32:46 PM PDT by DesertRhino (I was standing with a rifle, waiting for soviet paratroopers, but communists just ran for office)
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To: SeekAndFind

I presume all employees are eligible of Unemployment Insurance, Right??

And for how long will plants be shut?


24 posted on 04/04/2011 1:33:04 PM PDT by wetgundog (" Extremism in the Defense of Liberty is no Vice")
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To: SeekAndFind

Oh well...


25 posted on 04/04/2011 1:43:20 PM PDT by Vendome ("Don't take life so seriously... You'll never live through it anyway")
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To: edcoil

Can’t get the parts from China like everyone else?


LOL.

Actually...a lot of the parts Toyota puts in their cars are made in the USA. It must be really bad in Japan that it would shut down the US factories....there are probably some key parts that Toyota still keeps making in Japan

Parts that they would not ship out of country to be made....so not to have them counterfitted.


26 posted on 04/04/2011 1:48:13 PM PDT by UCFRoadWarrior (Donald Trump wants Obama's BC released...Glenn Beck attacks Birthers....Now, who is supporting Obama)
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To: SeekAndFind

Has anyone heard of other plant closures in NA? I was told (by a Ford engineer) last week that Kentucky Truck and Mustang production would be shutting down this week due to shortages, but have not seen anything in the news. Given the difficulties I’m seeing (Tier 1 supplier), I’m guessing a good many more plants are on the verge of shutting down as pipelines run dry.


27 posted on 04/04/2011 1:59:42 PM PDT by Liberty1970 (Liberty, not License. Freedom, not Slavery.)
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To: SeekAndFind

Woops...San Antonio pols will find some way to spin this as the fault of the Texas Republicans.

Colonel, USAFR


28 posted on 04/04/2011 2:03:37 PM PDT by jagusafr ("We hold these truths to be self-evident...")
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To: headstamp 2
Now that would be a long read!

A former collegue of mine opened an elecronics component factory in China. It is not the utopia of cheap labor we would think. Lot's of grifters in the layers of government too.

Deliveries, trucks, energy, and random regulation are a problem.

29 posted on 04/04/2011 2:03:42 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: dfwgator
So where are the Libyan rebels going to get their trucks from now?

geez - is that a 20mm cannon he's shooting out of the back of that truck? How the heck is he doing that without tipping over? Is that a stock suspension, or is it the special "technicals" edition?

30 posted on 04/04/2011 2:04:56 PM PDT by no-s (B.L.O.A.T. and every day...because some day soon they won't be making any more...for you.)
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To: Professional

Imagine manufacturing in a global market and your workforce is made up of Islamic persons and you’re in the suburbs of Cairo, Tehran, or Islamabad. Imagine a just in time manufacturing process in those regions? Imagine the interuptions?


31 posted on 04/04/2011 2:08:55 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: no-s
I watched a test once of a Bell Jet Ranger retrofitted to fire cannons and rockets from it's platform.

Talk about stability problems?!

32 posted on 04/04/2011 2:11:24 PM PDT by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: SeekAndFind
This will have an impact on all of Toyota's suppliers. If the final assembly plant must stop production then every supplier must also stop production. Many of Toyota North America's suppliers are here in America so many US parts suppliers are going to have to stop production for a while. I wonder if that will have an effect on April's unemployment numbers.
33 posted on 04/04/2011 2:18:43 PM PDT by NRG1973
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To: SeekAndFind

Another torpedo broadside our economy.


34 posted on 04/04/2011 2:22:51 PM PDT by backwoods-engineer (Any politician who holds that the state accords rights is an oathbreaker and an "enemy... domestic.")
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To: SeekAndFind

Party time in the U.S. Union halls


35 posted on 04/04/2011 2:26:15 PM PDT by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-Qaeda" and its allies.)
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To: RC2
Wouldn’t make sense to manufacture the parts in the US if they are used here? Japan will never make up what they have lost. Sounds logical to me, from a business stand point.....just sayin.

I believe that many of the parts are high-tech parts that need special facilities. I heard a guy on Cavuto's show last week say that many of the automotive electronic modules are made in China but the "wafers" for them are manufactured in a plant in Sendai that was badly damaged. Wafers require a clean room and clean rooms take a long time to build and qualify.

Its amazing that according to the article, 15% of the parts come from Japan...that must mean that 85% of the parts come from here in America. I suspect this will have an impact on those suppliers because if the final assembly must shut down then the parts suppliers must also shut down.

36 posted on 04/04/2011 2:27:14 PM PDT by NRG1973
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To: Professional

That Toyota has a month of parts already in the supply chain before they get to shut-down says a lot in itself.


37 posted on 04/04/2011 2:40:33 PM PDT by tcrlaf (2012 Slogan: "You'd Have To Be Insane, To Vote For Hussein!")
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To: NRG1973
Its amazing that according to the article, 15% of the parts come from Japan...that must mean that 85% of the parts come from here in America. 

Yeah but not necessarily from US owned companies. Most of these suppliers are Japanese companies that supplied Toyota in Japan and followed Toyota here and set up shop here. If it were up to me Toyota, Nissan, BMW, Hyundai etc would never been allowed to open up automobile plants on US soil

So the profits go back to Japan while Americans with proper slave mentality cheer Toyota for making jobs

 

 



38 posted on 04/04/2011 3:17:08 PM PDT by dennisw ( The early bird catches the worm)
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To: NRG1973
Its amazing that according to the article, 15% of the parts come from Japan...that must mean that 85% of the parts come from here in America. 

Yeah but not necessarily from US owned companies. Most of these suppliers are Japanese companies that supplied Toyota in Japan and followed Toyota here and set up shop here. If it were up to me Toyota, Nissan, BMW, Hyundai etc would never been allowed to open up automobile plants on US soil

So the profits go back to Japan while Americans with proper slave mentality cheer Toyota for making jobs

39 posted on 04/04/2011 3:17:51 PM PDT by dennisw ( The early bird catches the worm)
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To: SeekAndFind
At least we can dispense with all this crap that these are "American made" cars.

The Japanese are economic nationalists, that use trade only to build up their manufacturing sector.

40 posted on 04/04/2011 4:10:32 PM PDT by Last Dakotan
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To: Last Dakotan

When they start up again, I’ll probably buy one of their trucks. obami and his regime blckmailed them with the fake brake issue and the best part, obami’s crowd of idiots was once again WRONG.
The big thing to me is to buy a car or truck NOT made by the other extortionist outfit, the UAW.


41 posted on 04/04/2011 4:14:40 PM PDT by bfree (The revolution is coming - OBAMI IS THE ENEMY OF FREEDOM)
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To: RC2

“Wouldn’t make sense to manufacture the parts in the US if they are used here? “

You didn’t read the article. 85% of their parts are made in the US. It’s the other 15%, the ones that require more than a THIRD GRADE education, that still have to be made in Japan (even though much more expensive there).

They have tried their best to move as much production as possible to here, but the teachers’ unions will not let them send the rest.


42 posted on 04/04/2011 5:08:42 PM PDT by BobL (PLEASE READ: http://www.freerepublic.com/focus/f-news/2657811/posts))
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To: NRG1973

And so the real economic impact starts to begin...as many here said only the Japanese would be effected.

As I have said from the very beginning...the world wide effect will be tremendous ..will trickle down..and spiral on to other sectors.


43 posted on 04/04/2011 6:42:20 PM PDT by RummyChick
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To: RC2
Wouldn’t make sense to manufacture the parts in the US if they are used here? Japan will never make up what they have lost. Sounds logical to me, from a business stand point.....just sayin.

Obviously Toyota disagrees.
44 posted on 04/04/2011 11:34:27 PM PDT by Cheburashka (Democratic Underground: The Hogwarts of stupid.)
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To: dennisw
So the profits go back to Japan while Americans with proper slave mentality cheer Toyota for making jobs

The Japanese know how to keep the UAW away from their assembly lines. If you want prosperity to return to America, fight Big Labor, don't complain about those who have refused to knuckle under to it in their American factories.
45 posted on 04/04/2011 11:47:59 PM PDT by Cheburashka (Democratic Underground: The Hogwarts of stupid.)
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To: bfree
The big thing to me is to buy a car or truck NOT made by the other extortionist outfit, the UAW.

I was hoping that when GM was being spun apart, Saturn, or some other division would eventually become a non-union company. There was no way the UAW would allow an American owned company to be non-union.

46 posted on 04/05/2011 5:44:39 AM PDT by Last Dakotan
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