"Enormous Delay In Delivery:" Toyota Production Back To Normal - By The End of The Year

Bertel Schmitt
by Bertel Schmitt
enormous delay in delivery toyota production back to normal by the end of the

In a surprise press conference that had not been confirmed as late as last night, Toyota’s president Akio Toyoda laid out plans for Toyota getting back to normal. Bottom line: Toyota hopes to be back to normal by the end of the year.

“To all the customers who made the decision to buy a vehicle made by us, I sincerely apologize for the enormous delay in delivery,” Akio Toyoda said.

Production operations had been halted after the March 11 earthquake and tsunami. Production gingerly came back on-line at the beginning of the week. Currently, manufacturing plants in Japan are working at 50 percent of capacity due to parts availability, while those in North America are operating at 30 percent of capacity.

Today it was announced that in Japan, normalization of production is expected to start in July, with full normalization to be established at around November or December.

Outside Japan, depending on region and vehicle model, normalization of production is expected to start in August, with full normalization also expected to be completed in the November/December timeframe.

Toyota is still short approximately 150 parts positions, mainly electronic, rubber and paint-related. These shortages affect new-vehicle production. Replacement parts for service and repair are available.

The reduction in production is expected to take a good chunk out of Toyota’s 2011 production and sales numbers. Toyota Motor Corporation (Toyota, Daihatsu and Hino) ended 2010 with worldwide production of 8.56 million, and with sales of 8.42 million. Toyota had planned a very sedate increase of 2 percent for 2011. These plans obviously have been overtaken by events.

Asked for how big the hit will be, Toyota spokesman Paul Nolasco said: ”Our main focus is getting production back to normal, then we will see.”

The Nikkei [sub] already speculates that the “production cuts will likely reduce the auto giant’s overall output by some 20% to about 6.4 million vehicles in 2011. That would make Toyota the world’s No. 3 automaker, assuming production volumes at General Motors Co. and Volkswagen AG remain the same.”

Comments
Join the conversation
3 of 9 comments
  • PenguinBoy PenguinBoy on Apr 22, 2011

    I'm not a big Toyota fan, but I applaud Mr. Toyoda for giving this frank assessment of the situation his company is currently faced with. Based on everything Bertel has posted here, end of the year sounds about right - but who really knows? A schedule like this has lots of moving parts that can break... I don't work in the car business, but I was talking to one of my suppliers today and they expect certain Japanese sourced parts to be on allocation until at least the third quarter. It won't affect their deliveries as they have secured what they need to meet forecast demand - but they are in a *much* lower volume business than the carmakers. I wouldn't want to be trying to source parts that are used by the thousand right about now...

    • APaGttH APaGttH on Apr 22, 2011

      I feel the exact same way. Not a fan of Toyota but this is exactly what was needed. It appears that Toyota has learned a lot of their horrific PR management previously. Transparency goes a very long way and builds understanding. When you even appear to be hiding something, the results are not going to turn out well.

  • SCE to AUX SCE to AUX on Apr 22, 2011

    Back to normal by the end of the year makes sense, I suppose. It would be interesting to see how their plight stacks up against other industries (small and large). Some will take much longer, some will never recover. Toyota has the wherewithal to make their recovery as quick as possible; others, not so much. This is a terrible shame, not because of the car shortage, but because of the many lives and livelihoods affected.

  • EBFlex Chrysler has the best infotainment by far. The older uConnect system was bulletproof and never had issues. The newer one based on android auto is a big step backward but it's still very good. Nothing else comes close to Chrysler's infotainment.
  • EBFlex People don't want compromises. They want a vehicle that will match what they have now with ICE which includes very short refueling times, long range, and batteries that don't degrade over a rather short time. In the midwest, people don't live on top of each other. People like their space and are spread out. 30+ mile commutes are common. So is outdoor living which includes towing.Government cars make sense for the coasts where people love to live on top of each other and everything is within walking distance. They don't make sense in areas where it's cold and 40% of your range could be lost. Government cars are just not viable right now for the majority of people and the sales reflect it.
  • MaintenanceCosts There are a lot of lifestyles outside of urban America that don't work well yet with EVs. I live in Seattle and would face minimal (if any) inconvenience from driving only EVs. We are in fact planning to replace our big family car with an EV in 2024. But my relatives in small-town Texas would have to change some things they do unless/until there is a complete fast charging network along rural I-20. That network is coming, but it will be a few more years.
  • VoGhost Five years ago, Tesla was ten years ahead of the competition. I haven't seen anything to suggest that's changed.
  • Varezhka They cheapened out on the hardware side too, so we'll see how much they can improve with the software updates. I know they're using faster processors with some of their newer vehicles, but not sure how much faster.
Next