DETROIT(March 25, 2011)—The supply-chain disruptions from the March 11 Japanese earthquake are likely to force Toyota Motor Corp. to cut production at its North American plants, the company said.
The auto maker warned workers in the U.S. and Canada that supplies of parts from Japan are running thin and would cause some interruptions in vehicle production.
On some Toyota models built in North America, Japan-sourced parts can represent 10 to 15 percent of all content, Goss said, adding that the auto maker is particularly concerned about supplies of electronic components and rubber.
Toyota has already eliminated overtime throughout its North American manufacturing operations to preserve parts stockpiles.
Honda Motor Co., meanwhile, said some of its biggest suppliers are still struggling to recover.
As of March 22, "about 10 of those suppliers have let us know that they will be more than a week from getting up to speed," American Honda spokesman Jeffrey Smith said. "They are experiencing significant delays."
Honda hasn't indicated that part shortages will slow assembly lines outside Japan.