Toyota's tsunami warning

Published on Friday 22 April 2011 15:39

Toyota, the Japanese car giant behind the Prius hybrid and Hilux pick-up models, has warned that it could take until the end of the year before production has fully recovered from last month's devastating earthquake and tsunami.

In the clearest forecast yet of how long it would take for the industry to recover, the company yesterday said output would start to pick up in July in Japan and around August overseas, with a complete recovery expected in November or December.

Until then, Toyota's domestic factories will continue to work at volumes equivalent to half of original plans, and those outside Japan at an average 40 per cent.

Speaking at a hastily called news conference in Tokyo, company president Akio Toyoda said: "With this many aftershocks, including one last night, we've seen some of the recovery work thrown back to square one many, many times.

"In that sense it's difficult to say what the impact on production volumes or earnings will be."

Japanese carmakers continue to face shortages of parts.

The fallout from March's natural disaster in north-eastern Japan has had some impact closer to home. Toyota has announced it is reducing production in May at its plant in Burnaston, Derbyshire, to allow its Japanese supply chain to catch up.

Honda, is cutting production at its plant in Swindon, Wiltshire, in the face of a shortage of vital components.

Yesterday's news from Toyota came a few hours after Japan's Renesas Electronics, a major supplier of chips to the motor industry, said it would resume operations at a damaged factory north of Tokyo on 15 June, a few weeks ahead of schedule.