Earthquake Japan: Toyota Halts Production In Japanese Plants
All 12 Toyota plants in Japan have stopped their production, at least until March 16. Other Japanese corporations might follow their example.
Toyota officials announced they will stop production in all the Japanese plants, at least until March 16. As a result of this planned production stop, the Japanese of Toyota will produce 40,000 units less at the end of this year. All 12 Toyota plants in Japan will halt their production for preventing any accidents or deaths, that might be caused during another earthquake in Japan.
Toyota built 234,045 cars in Japan in January 2011. The biggest automaker in Japan and in the world builds 38% of the cars they sell annually on the domestic market. Because of this production stoppage, Toyota shares dropped %7.7, reaching 3.320 yens. Meanwhile, the Nikkei 225 index dropped %6.1, so Toyota shares drop was expected.
Some of the Toyota plants were closed since Friday, because of the earthquake. Honda, Nissan, Subaru and other big Japanese brands (like Sony) closed their factories that day. Rumor has it that the other big Japanese companies will do the same as Toyota. In addition, besides lowering the risks, the production stoppage also lowers the power consumption, now Japan providing energy. with one nuclear plant shut down.