Toyota halts production at three plants after supplier fire

Fri Jun 3, 2016 4:12am EDT
 
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TOKYO (Reuters) - Toyota Motor Corp on Friday said it has suspended production at three plants affected by an explosion earlier this week at a supplier factory, adding that it expected production to fully resume by the beginning of next week.

The blast on Monday was at a factory of Aisin Advics Co, a major maker of breaking systems majority owned by Toyota group supplier Aisin Seiki Co.

Toyota said it would cancel one of two production shifts on two lines at a plant operated by group company Hino Motors Ltd. Earlier in the day, it scrapped shifts on a line at its Toyota East Japan plant and at a plant operated by group company Daihatsu Motor Co Ltd.

The suspensions would be the third this year. They follow supply-chain disruption caused by earthquake damage to a factory operated by an Aisin Seiki subsidiary, and a fire at a steel plant owned by supplier Aichi Steel Corp.

"We will continue to monitor the parts supply status and decide on how to proceed with operations on each line as necessary," a Toyota spokeswoman said.

"We expect a full-scale recovery on June 6."

Toyota did not disclose the estimated impact of the suspensions.

(Reporting by Naomi Tajitsu; Editing by Chris Gallagher and Christopher Cushing)

 
An employee works under a Toyota Motor Corp logo at the company's showroom in Tokyo, Japan February 5, 2016. REUTERS/Toru Hanai