Toyota signals bleak outlook for 2011

The world’s biggest carmaker by sales, Toyota, says that it does not expect production operations at home and overseas to be back to normal before November, pointing to a bleak outlook for the company.

Following the March earthquake and tsunami, Toyota’s president, Akio Toyoda, said that while the outlook on problems in parts procurement, a major obstacle to restoring normal operations, is becoming gradually clearer, it's still too early to gauge the impact of the disasters on the company's earnings and total production.

Toyota is scheduled to report its results for the year (ended March) on May 11.
The comments confirm the extent of the task facing Japan's auto industry as it seeks to repair damage to auto assembly and parts manufacturing facilities at home, as well as restoring supply chains stretching around the globe to their status before Japan's biggest-ever earthquake.

Toyota had already announced production cutbacks in Japan and key markets around the world, including the US and China, bringing production to 50 per cent of normal volume in many cases to preserve parts.

Vice-president Shinichi Sasaki recently told reporters that Toyota will be conducting a review of its system of centralised parts sourcing. As part of that review, the company will look into whether it can use more commonly available parts in auto assembly to smooth production and parts replacement.

Underlining issues surrounding parts supplies, Toyota said separately that production will be partially suspended at three plants in Thailand from April 25 through June 4.

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