Toyota extends production cuts due to Thailand floods

Toyota factory in Thailand
Image caption The floods in Thailand have forced all Japanese carmakers to suspend production in the country

Toyota has extended production cuts at its factories in Thailand and Japan due to shortage of parts in the wake of floods in Thailand.

The company said production in Thailand will remain suspended, while Japanese units will work at reduced capacity until 12 November.

The move is a latest setback for Toyota, which is still trying to recover from the earthquake and tsunami in Japan earlier this year.

Toyota is the world's biggest carmaker.

The company said that production in Japan "will be adjusted based on an ongoing assessment of the parts supply situation at each individual production line".

Production loss

The floods have dented Toyota's production numbers.

Amiko Tomita, a spokeswoman for Toyota, told the BBC that suspension of production in Thailand was expected to resulted in the loss of 69,000 units between 10 October and 5 November.

At the same time, output at Japanese factories is projected to be down by 22,000 units between 24 October and 5 November.

To make matters worse, the company warned that if the situation in Thailand does not improve, it may have to cut production in other countries including, the US, Canada, South Africa and Philippines starting next week.

"A decision on production from 14 November onward will be made based on an assessment of the situation as it develops," the company said.

Earlier this week, another Japanese carmaker Honda, said it will cut production at its factories in the US and Canada by 50% due to shortage of parts.

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