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Toyota making drastic production cuts after Japan quake, tsunami

By the CNN Wire Staff
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Trouble for Toyota
STORY HIGHLIGHTS
  • Toyota announces drastic production cuts in North America and China
  • The company had already announced that it dropped production in Japan
  • The cuts come amid difficulty in supplying parts after last month's quake and tsunami in Japan

(CNN) -- Toyota has announced drastic production cuts in North America and China due to difficulty in supplying parts following the massive earthquake and tsunami in Japan.

Previously, Toyota Motor Engineering and Manufacturing North America, Inc. (TEMA), had said it would suspend production on Mondays and Fridays between April 15 and April 25. That will continue through June 3, the company said in a statement.

"During the same period, production will run at 50% on Tuesday, Wednesday and Thursday," the statement said.

In addition, Canadian production will be suspended for the week beginning May 23, and U.S. production for the week starting May 30.

No decisions have been made for production after June 3, according to Toyota Motor Corp.

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"No layoffs are planned during this period," the statement said. "Team members will utilize nonproduction time for training and plant improvement activities."

"We are trying to continue production as much as possible and keep our work force intact in order to facilitate a smooth transition back to full production when all parts are available," said Steve St. Angelo, executive vice president of TEMA.

Last month, Toyota told its U.S. plants to prepare to shut down because of parts supply problems.

Toyota employs 25,000 workers in North America. It operates nine plants in the United States in Kentucky, Indiana, Texas, Tennessee, Alabama, West Virginia, California and Mississippi. It also operates three plants in Canada and one in Mexico.

In China, the company plans to go to 30% to 50% production from Thursday through June 3 because of difficulties delivering parts.

Toyota had already announced that it dropped production in its manufacturing facilities in Japan to 50%.

Officials said Tuesday that the drop in production would continue and that Toyota would stop production all together between the dates of April 28 to May 9.

The earthquake and subsequent tsunami struck Japan on March 11, leaving thousands dead.

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