Toyota again delays the total reopening of its plants in China

The Japanese car giant Toyota Motor has decided to delay again the total resumption of the operation of its plants in China due to the outbreak of COVID-19, which has been affecting its operations since the end of January.

The largest Japanese manufacturer in the sector by volume of sales has four vehicle assembly plants in China that were temporarily closed for the Chinese New Year, and whose reopening was postponed due to problems in the supply of components derived from the outbreak of the new coronavirus .

Toyota has now decided to reopen three of those four plants since Monday but operating at half capacity, while the fourth, located in Chengdu (west), could re-operate a week later, a spokesman for the company explained today. .

The same source said that the company has not yet determined when it will be able to re-operate all its plants at full capacity, and said that the situation in each of them depends on various logistical circumstances and on the guidelines of the Chinese authorities.

The Nagoya-based company (central Japan) has eight other engine and auto parts production plants whose operation has also been temporarily suspended or altered.

The problems derived from COVID-19 have also affected the second largest Japanese manufacturer in the sector, Nissan Motor, which delayed the reopening of four plants in China from the end of January until at least the beginning of next week, in addition to stopping its facilities in Kyushu (southern Japan), which agglutinate half of its domestic production.

Other Japanese companies in the automotive sector such as Honda or Isuzu have been forced to take similar measures due to supply disruptions and other logistical obstacles in China, where 30 percent of Japan’s auto parts imports come from.

Although there is no detailed data yet, it is feared that the COVID-19 outbreak will have a significant impact on the accounts of Japanese motor companies and other sectors, especially those of air transport or services and retail trade, the most exposed to the fall of tourism.

The restrictions on air traffic from China that Japan applies could cause the country to lose 1,290 million dollars (1,191 million euros) in tourism revenues in the January-March period, according to a report published this week by the Aviation Organization Civil International, a UN agency.


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