Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Toyota Sees At Least 6 Months Before Normal Production

April 22, 2011
3 min to read


TOKYO - Toyota Motor Corp., hit hard by last month's Japanese earthquake, says it will take at least until November for production to return to normal – overseas and at home – but that factory suspensions have bottomed out and output will start rebounding this summer.


The announcement makes the world's biggest automaker the first to publicly forecast a return to pre-quake levels and offers a peek at how long it may take other Japan carmakers to recover, reported Automotive News.

Ad Loading...


Toyota President Akio Toyoda said today he outlined the timeframe – despite its being long-range and vague – to help dealers with planning. Until now, they have been hamstrung in pitching their products and handling customers because of looming uncertainty about inventories.


"By telling dealers the timing of the recovery, they can have a better conversation with their customers," Toyoda said at a news conference. "Dealers right now cannot talk to their customers about delivery timing. They can't talk about specifics. Sales people are having a difficult time."


Toyota expects output overseas and in Japan to return to pre-quake levels in November or December. In Japan, output that currently hovers around 50 percent of the normal rate will start increasing in July as the final kinks in the supply chain get worked out.


Factories in other countries will begin ramping up production from current levels in August.


Atsushi Niimi, executive vice president for global manufacturing, said U.S. production levels – expected to be around 30 percent normal – will inch along at that rate until August.

Ad Loading...


"I think that's the lowest production will drop," Niimi said.


Toyota recently has announced several production cuts for plants in the United States. Assembly plants there will operate for only three days a week. And when they are running, they will work at only half the normal pace. That brings total output to about 30 percent of pre-quake levels because the plants will lie completely idle on both Mondays and Fridays.


Like other Japanese automakers, Toyota has been suspending production amid global parts shortages triggered by the March 11 earthquake that hammered Japan's supply chain. Toyota also announced this week that it would slash utilization of its plants in China to as low as 30 percent.


It has made other production cuts in Europe.


Toyoda stressed that his comeback plan is still very fragile.

Ad Loading...


"Just last night in the area around Tokyo, we had another aftershock," Toyoda said. "Because of such things, it can reverse the progress being made. So it is difficult to read what will happen."


He wouldn't speculate on how it would impact earnings or about how many units of production would be lost globally, with plants limping along for months to come.


Through the end of April alone, Toyota expects to lose 500,000 units globally.


Shinichi Sasaki, executive vice president in charge of purchasing, said models that share many commonized parts will be first returning to normal production.


Toyoda said the company is considering support to its dealers as sales sag. In Japan, that will entail help in seeking public support or in attracting after-service repair work.

Ad Loading...


He didn't outline any plans for dealers overseas. Spokesman Masami Doi said actions to support U.S. dealers would be handled through its local sales arm, Toyota Motor Sales U.S.A.


"The best thing we can do for those dealers is supply cars as quickly as possible," Toyoda said.


Toyota will also tweak procurement to better guard against supply shocks, Sasaki said. While it will stick with a just-in-time approach of keeping low parts inventories, it will spread risk better.


That will include moving more parts production overseas – especially lower tier suppliers, he said. That way, U.S. parts plants won't be as reliant on imported subcomponents.


"We have to consider being able to procure the entire part locally," Sasaki said. "We would like to ask our suppliers to consider setting up shop overseas."

More Industry

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →