Toyota Will Restart Car Production in Japan Tomorrow (Update6)

Toyota Will Restart Car Production in Japan Tomorrow


(Bloomberg) -- Toyota Motor Corp., Japan's biggest carmaker, said it will restart production at domestic auto plants tomorrow after they were shut down due to a lack of parts following earthquake damage to a supplier's factories.

Toyota will restart production at 20 of its 31 domestic lines for one day, said Kayo Doi, a Toyota spokeswoman. Manufacturing beyond tomorrow has yet to be determined, Doi said. Toyota will lose output of 55,000 vehicles through tomorrow because of the shutdown.

The carmaker stopped production in Japan on July 19 after an earthquake damaged facilities at piston-ring supplier Riken Corp. three days earlier. Japanese automakers limit inventory to cut costs, preferring to take delivery of components only when needed.

``The recent event highlighted the risk of a too-lean supply structure,'' Tatsuya Mizuno, director at Fitch Ratings in Tokyo, said in a report today. Fitch Ratings also said production cuts won't affect its ratings and outlook on the Japanese automakers because they can catch up with production as Riken resumes output.

Toyota reiterated its 2007 global target of selling 9.34 million vehicles, a number that includes sales by its affiliates Daihatsu Motor Co. and Hino Motors Ltd. Excluding the two subsidiaries, Toyota expects to sell 8.4 million vehicles.

``In Japan, sales were quite difficult in the first half, but in the second half we hope to increase demand by introducing new models,'' President Katsuaki Watanabe said at a Tokyo press conference.

Honda, Mazda

Honda Motor Co., Japan's second-largest carmaker, will restart production at three factories tomorrow, the company said in a statement today. Mazda Motor Corp., a third owned by Ford Motor Co., will restart output at its factory in Yamaguchi prefecture tonight and at its plant in Hiroshima prefecture tomorrow, said spokeswoman Yukari Hara.

Daihatsu, Japan's largest minicar maker, restarted production at two plants today and will resume operations at another tomorrow, said spokesman Shozo Shimizu. Fuji Heavy Industries Ltd. may resume making minicars on July 25, spokesman Kenta Matsumoto said.

Mitsubishi Motors Corp. will extend its output suspension to tomorrow, the Tokyo-based company said in a faxed statement. The automaker plans on July 25 and July 26 to resume production, while it may have to stop manufacturing the following day, the statement said.

Mitsubishi Motors halted production at its Mizushima plant, where it makes models including the Lancer sports sedan, for four days from July 20. It stopped lines at its Nagoya and Pajero plants for three days from July 21.

Lost Output

Mitsubishi Motors estimated lost output during the unplanned suspension to total 10,000 cars, the statement said.

Riken restarted partial production this morning. The Tokyo- based company is Japan's largest maker of piston rings and seal rings, key parts used in engines and transmissions.

Riken closed 11 factories after an earthquake that measured 6.8 on the Richter scale. Toyota has dispatched more than 200 engineers to help Riken resume production.

Toyota shares fell 1.2 percent to close at 7,470 yen in Tokyo.

The following table summarizes the impact on each automaker's production schedules:

Automaker Date Impact
Toyota July 19-20 full halt for 1.5 days at 12 factories
including plants operated by body
makers
July 23 full halt at 12 factories including
engine plants operated by body makers
July 24 Resume partial production

Nissan July 20-21 partial halt at Tochigi and Oppama
factories and Nissan Shatai Co.'s
plant
July 23 full halt at six factories including
Oppama and Tochigi plants
July 24 full halt at Oppama and Kyushu auto
plants and resume production at two
parts plants

Mitsubishi July 20-24 full halt at Mizushima factory for 5
Motors days until July 24; full halt at
Pajero and Nagoya factories and engine
plant for 4 days until July 24

Honda July 20 full halt at Suzuka factory
July 21 full halt at Suzuka and Sayama
factories
July 23 full halt at three auto plants
including its Yachiyo Industry Co.
unit
and engine plant for minicars; partial
halt at motorcycle plant
July 24 full halt at Yachiyo's Yokkaichi
factory, engine factory for minicars;
resume output at Sayama and Hamamatsu
factories; partial resumption at
Suzuka plant

Mazda July 21 full halt at Ujina and Hofu factories
July 23 partial halt at Ujina and Hofu plants;
resume night shift at Hofu
July 24 resume production at Ujina factory

Suzuki July 19-21 partial halt at 5 factories including
engine plants
July 23 full halt at two auto factories and
engine plant; resume output at three
plants for motorcycles and forged
products
July 24 full halt at two auto factories and
engine plants

Daihatsu July 19-20 full halt at factories including
engine plants for 1.5 days

July 23 full halt at Ikeda and Kyoto plants;
resume output at Shiga and Oita plants
July 24 resume output at Ikeda plant; halt
output at Kyoto plant

Fuji July 19-21 full halt of minicars at 1 factory for
Heavy 2.5 days
July 23-24 prescheduled to close plants
July 25 may restart minicar production

Hino July 19-20 full halt at Hamura factory for 1.5
days
July 23 full halt at Hamura factory
July 24 resume commercial vehicle production
at Hamura factory; passenger car
production remains suspended

Isuzu July 21 full halt
July 23 resume production

Nissan July 21 full halt
Diesel July 23-25 resume production

Fuso July 20-21 partial halt
July 23-24 resume production

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