Toyota to Keep Japanese Plants Idle Into Next Week

Toyota Motor (TM) said Wednesday it has extended its halt on vehicle production at its plants in Japan through March 22, as the country continues to reel from the devastation of last week's massive 9.0 earthquake and ensuing tsunami.

A decision on when vehicle production will resume in Japan has yet to be made, Toyota said in a written statement. The disaster damaged nuclear power plants north of Tokyo and is believed to have killed at least 10,000 people.

The company said it will resume replacement parts production for vehicles already on the road beginning Thursday. Further, the world's largest automaker said it plans to restart production of parts for its plants overseas on Monday.

Earlier in the week, Toyota said it would halt Japanese production through March 16. But the severity of the destruction caused by the quake and tsunami has strained relief efforts in the northeast region of the country, where the damage is most severe.

The halt in production comes at a difficult time for Toyota, which has seen its sales fall in the U.S., following massive recalls of its vehicles that began in late 2009 and have continued into this year.

Toyota stands to lose $73 million a day as long as its Japanese plants remain idle. Further, a rise in the value of the yen has made it more expensive for Japanese manufacturers to sell their goods overseas, putting a pinch on profits, including those at Toyota.

"The direction of the Japanese yen over the next three to six months as a result of this catastrophe will also affect the profitability of Japanese automakers," according to a report by Fitch Ratings, cited by the Reuters news agency.

Toyota's largest domestic rival, Nissan Motor (NSANY), said it would restart two plants on Thursday and Friday, but production beyond that remained uncertain, Reuters said. Other plants would take longer to get back on line.

Japan's third largest automaker, Honda Motor (HMC), has also idled plants, according to Reuters. On Wednesday the company reiterated its plans to suspend all production in Japan until at least Sunday.

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sgentilejr

It will be a very long time before Japan can restore electric generating capacity. Until new electric generation equipment can go online__-they will have a shortage of electricity and not be able to resume normal production of anything___even if all of their manufacturing plants were not damaged by the earthquake or Tsunami. They are have roaming brown outs and cannot even run their trains because of electricity shortages. They cannot open all of the undamaged factories___there simply is not enough electricity available.

March 17 2011 at 10:19 AM Report abuse rate up rate down Reply
capenv

Buy a Toyota and get free cancer checkups and oil changes for your life or the life of your car. Which ever dies first

March 17 2011 at 12:34 AM Report abuse rate up rate down Reply
capenv

Toyota Nuclear Hybrids. Now that's saving gas! "Toyota, Like every other car company only better because Toyotas now glow in the dark.

March 17 2011 at 12:32 AM Report abuse rate up rate down Reply
JLS

Wow, look at all the nuts posting here.

Buy what lasts. None of us have money to keep buying junk just because it's made here. American auto manuf need to make better cars and trucks. Competition encourages that.

GM is a great car company that will rally and do better. Ford products are absolute junk. I have worked for both (not dealers but national headquarters processing claims). Toyota products are incredibly good. Every car company recalls cars. EVERY SINGLE ONE.

March 16 2011 at 4:04 PM Report abuse +1 rate up rate down Reply
benplhrs743

WHAT NUCLEAR MELTDOWN ITS ONLY THE FLOORMATS

March 16 2011 at 3:24 PM Report abuse +1 rate up rate down Reply
1 reply to benplhrs743's comment
capenv

You nailed it man. The Japs always underplay any problems they have. Watch the network news. Japanese officials aren't telling the whole truth about the severity of the nuke problems. A few American Nuclear experts arrive and they're telling eveyone to get the hell out of here it's much worse than the Japs will admit. It's only the floor mats!

March 17 2011 at 12:29 AM Report abuse rate up rate down Reply
benplhrs743

lOSING 73 MILLION A DAY. IT COULDNT HAPPEN TO A MORE DESERVING BUNCH. a CURSE UPON TOYOTA FOR WHAT THE DID TO ME. A POX UPON TOYOTA FOR WHAT THEY DID TO ME. MAY GOD DAMN TOYOTA FOR WHAT THEY DID TO ME.

March 16 2011 at 3:22 PM Report abuse -1 rate up rate down Reply
1 reply to benplhrs743's comment
JLS

Apparently, you missed the US govt' saying the acceleration claims were all bogus a couple of months ago. They said there was no evidence of a wide based acceleration problem in Toyota products. It's people like you that grab onto a headline and then never look into it that cost a good auto manuf it's reputation. Stupid! How about basing your opinions on facts next time.

March 16 2011 at 3:44 PM Report abuse +1 rate up rate down Reply
CnOWrms1

Japan is suffering unprecented tasks of stability and recovery. However, Chicago is booming. Hello, Roadrunner. RUSTBELT RECOVERY. ACME Industries is a small contract manufacturer with only 10 big customers, who are a cross section of the industrial economy spanning mining, oil, transport and construction. In one corner of ACME's factory, just outside of Chicago, what looks like a steel Lego brick, about the size of a steamer trunk, is being polished. This is designed to channel water underground at high pressure, and will go into natural gas drilling equipment. Ref. The Economist, March 12-16, 2011, pg. 15.

March 16 2011 at 3:03 PM Report abuse -1 rate up rate down Reply
steve

they should stop toyota for good 13 million recall just junk

March 16 2011 at 12:12 PM Report abuse +3 rate up rate down Reply
1 reply to steve's comment
JLS

Here is another fool. Read headlines and thinks that's fact. The National Highway Transportation Safety Board said there was NO real facts that suggested Toyotas had a sudden acceleration problem. That was two months ago and you can Google it for confirmation. This man never read that article and mistakenly considers their products junk. This is how this crap gets started.

Remember the man in San Diego that was not making payments on his Prius any longer and decided to claim it had accelerated all on it's own so that the bank would take it back on that premise? The San Diego County Sheriff said there was NOTHING WRONG with the car and that he had done similar fraudulent things in the past.

I worked Toyota claims at Toyota National Headquarters for years. You'd be shocked at the ridiculous allegations Americans do either to get the car repossessed because they can no longer pay for it OR they want a cash settlement. One owner said he didn't have sex with his wife any longer because he hated the car. Lack of consortium. Just effn' ridiculous.

Just because you read a frothed up headline, doesn't make is so. And further, all auto manuf have recalls. I worked for GM and Ford and let me tell you, those cars are junk! They aren't repairable in a significant amount of situations. Just junk. Honda has had recalls, GM does all the time, and so does Ford (we called them FORD-or found on the road dead).

Get off Toyota. Compared to GM and Ford, they are very good quality cars overall that last up to 200k miles. Try driving a Ford that long.....

And finally, follow what the US gov't says it found in it's studies after the recall. If you had been paying attention, you would have known NHTSB found there was no sudden acceleration probs. All this crazy emotion hating on Toyota for an empty emotion driven reason.

March 16 2011 at 3:59 PM Report abuse +1 rate up rate down Reply
vinkbear

As tragic a situation as this is, it's not without an opportunity. It may well take years for Japan to rebuild. In the meantime, don't we have a lot of factories that are already built, but closed? This is a perfect time to start rebuilding our manufacturing sector, which has been lost to foreign competition. I'm sure there's some entrepeneurs out there with the capital to make it happen. If not now, when?

Again, my heart goes out to all that suffered and lost, but I'm a realist and I'm sensing a potential boost to our economy that we sorely need. If we can get congress to forget about some stupid defense of marriage act or looking for boogiemen in the muslim community, they might actually be able to propose some incentives for start up manufacturing in this country. They ran on the promise of making new jobs, what a perfect time to put their money where their mouth is.

March 16 2011 at 10:49 AM Report abuse +7 rate up rate down Reply
1 reply to vinkbear's comment
danbol1237

You are so right, but it won't happen. Why you ask? If I wanted to build a plant in Illinois it would take about a year to file all the necessary enviromental impact studies and other government studies that are required. Meanwhile the Chinese will build a plant and have it operational before the ink is dry on the first one.

March 16 2011 at 10:55 AM Report abuse +6 rate up rate down Reply
Koz

What about all those cars sitting in the lots. They must have received some radiation.

March 16 2011 at 10:31 AM Report abuse +3 rate up rate down Reply