8.18.2011

Toyota sees slower growth due to Japan crisis

Toyota Motor Philippines Corp. expects only a slight increase in sales this year to around 57,000 units from last year’s 56,855 units, due to the effects of the Japan crisis.
In an interview
president Michinobu Sugata said the vehicle assembler really felt the impact of the supply chain disruption caused by the Japan disaster, with sales slowing by 23-26 percent in May and June.It was also during those two months that the company reduced its production, halving its output andimplementing a three-day workweek, just to stretch its available parts inventory. Other auto manufacturersdid similar production reductions.The March 11 Japan earthquake that triggered a tsunami and a nuclear disaster severely disrupted thesupply chain for key components. Even completely built-up unitscould not be transported due to damaged airports and seaports.Without units to build and similar limitations in importedwe experienced a decline in sales in May and June. Some of our competitors apparently took advantage of our setbacks, and our leadership was in question a speech during Thursday’s launch of the new Fortuner.However, I am now very confident that with the restoration of normal parts supply, the full resumption of two-shift operations at our Sta. Rosa plant from June 6, and the improvement in the availabilitywehave been able to recover the fastest among our competitors who were also affected by the disaster

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