Toyota may lose production of 500,000 vehicles

(March 31, 2011) Post-earthquake troubles continue to mount for Toyota.

An analyst at Advanced Research in Japan said that Toyota may delay the production of at least 500,000 vehicles because of a shortage of parts and electricity after the nation's record earthquake.

Toyota's operating profit may be hurt by at least 100 billion yen ($1.2 billion) in the fiscal year ending today and up to 200 billion yen next fiscal year, said Koji Endo, an auto analyst at the research company. Any impact on production that spills overseas will further dampen earnings, he said.

Toyota has said the company lost 140,000 units of production from March 14 to March 26, citing a shortage of electronic parts, rubber and plastics. The carmaker resumed output of three models at two factories on March 24, prioritizing hybrids including the Prius. All 18 plants in Japan were halted until then.

Toyota built 3.28 million cars in Japan in 2010.

"Hardly any cars will be built in April and a very low level of production will continue from May," Endo said. Toyota has been able to resume hybrid output using parts from suppliers who have recovered and remaining inventory, spokeswoman Shiori Hashimoto said.

Japanese manufacturers face a cut in summer power supply of about 15 percent after the March 11 quake knocked out generators, curbing growth in the world's third-largest economy. Toyota may cooperate with other carmakers to devise a production rotation plan or conserve power in other ways, spokesman Masami Doi said.

Source: Bloomberg News