(March 24, 2011) Lindsay Chappell of Automotive News reports the supply-chain disruptions of the March 11 Japanese earthquake will soon cause Toyota Motor Corp. to begin cutting production at its North American plants. According to Chappell the company told workers and retailers earlier this week.


The automaker has warned workers in the United States and Canada that supplies of parts from Japan are running thin and would cause some interruptions in vehicle production.

"Our supply line has reached a point where it is clear we will incur some non-production time," said a memo that was circulated to employees at Toyota's North American vehicle assembly and engine plants. "The amount of non-production is still uncertain."


"As of this time," said the factory memo, "we have an ample supply of most products, our ships continue to deliver vehicles to North America, we have reopened our parts plants in Japan and we are doing all we can to ensure our dealers have products available for customers."


Michelle Krebs, Senior Analyst at Edmunds.com noted, "As our team determined earlier [yesterday], demand for new cars is proving to be steady, so we can be sure new car prices will go up as inventory thins out. The shutdowns†announced by Toyota†are likely†just†the beginning. All automakers are just now figuring out who supplies every little part. The shortage of any one could shut down an assembly line. Toyota isn't the only one vulnerable; virtually all major automakers have some risks."