Toyota to delay production of 500,000 vehicles owing to shortage of parts

43884.jpegToyota Motor Corp. may delay the production of at least 500,000 vehicles in Japan because of a shortage of parts and electricity after the nation's record earthquake, said an analyst at Advanced Research Japan.

Toyota, the world's largest carmaker, has said the company lost 140,000 units of production from March 14 to March 26, citing a shortage of electronic parts, rubber and plastics. The carmaker resumed output of three models at two factories on March 24, prioritizing hybrids including the Prius. All 18 plants in Japan were halted until then. Toyota built 3.28 million cars in Japan in 2010, Bloomberg reports.

Other automakers, including General Motors Co and Ford Motor Co have had to slow related work or take precautionary steps in response to the disaster that has tested the just-in-time manufacturing strategy of stocking low quantities of parts and supplies to keep down costs.

The report mentioned that Toyota, told dealers an assessment of inventory and the status of suppliers following the disaster prompted action to ensure enough components for the North American market.

According to the report, Toyota told dealers it has placed 233 parts out of 300,000 -- less than 1 percent -- on so-called controlled allocation in order to "maximize future availability," Wheels Unplugged informs.


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