Skip to comments.Toyota Will Shut Down All Of Its North American Factories Due To Shortages In Japan
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 ...
Wonder if this is why Obama seemed indifferent to what’s going on in Japan? Hoping that the disaster would disrupt more US jobs.
Can’t get the parts from China like everyone else?
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.
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.
“Wouldnt 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!
It's future in an Obama world of freshly developed hell on earth, kiss low cost manufacturing good bye.
“Wouldnt make sense to manufacture the parts in the US...”
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.
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?
“Cant get the parts from China like everyone else?”
You can bet that is being ramped up now.
I would rather push a Toyota than ride in a government union motors, so whatever color is available will do..
So where are the Libyan rebels going to get their trucks from now?
you’d think they cover with all the counterfeits out there.
My bet is on Vietnam, South Korea if the idiot to the north drops dead, Maylasia, and the Phillipines.
Made in china put in japanese boxes in japan.
Is it more expensive to manufacture here or go out of business because of mother nature. Most good companies plan for “what if”.
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...
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.
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.