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Toyota Extends Production Cuts at U.S. Plants

Will continue operating at reduced speed at least through June.

by on Apr.20, 2011

Toyota extends production cuts outside Japan.

Still struggling with a shortage of Japanese-made parts, Toyota says it will extend production cuts at its North American “transplant” factories until at least June – but says the move will not result in any layoffs.

Like its Japanese competitors, Toyota has been struggling to get its operations back up to speed in the wake of the March 11th earthquake and tsunami – and subsequent nuclear crisis – that devastated Japan. The maker’s home assembly plants were down for a month, resulting in the loss of over a quarter million vehicles of production.

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But the cuts have been extended to other parts of the world, where Toyota’s factories depend on at least some Japanese-made components.

Shortly after the March disaster, Toyota suspended overtime work at its U.S. operations. It now says that from this Friday through June 3 North American plants will operate at half capacity on Tuesdays, Wednesdays and Thursdays and shut down entirely on Mondays and Fridays.