Japanese earthquake: UK – Toyota cancels overtime working image

Yesterday (Apr 6), Honda announced that the company is halving production at its Swindon car factory because of a parts shortages caused by the Japanese earthquake.

Today, Toyota Motor Co. announced that the company is forced to cancel overtime working at its car assembly and engine plants in the UK (Burnaston, Derby, and Deeside) as automakers increasingly face component shortages caused by the deathly earthquake.

A spokesman said: “These are precautionary measures until we find out about the effect of supplies coming from Japan.”

The Burnaston plant, which last year produced 137,000 Auris, Avensis and Auris Hybrid models, suffered a supply gap of about one week through March 21

The destruction wrought by the earthquake, tsunami and power station failure at Fukushima has disrupted the manufacture and export of parts ranging from satnavs to brakes, paint and computer chips, and is now hitting dozens of car factories worldwide.

Neil King, analyst at IHS Automotive, said around 1m fewer motor vehicles could be produced worldwide this year due to the Japan earthquake. He added that Japanese manufacturers faced the threat of sales losses in key markets if they did not repair the damage quickly.