March 3, 2021

Toyota resumes normal production at several of its plants in China and Japan

Japanese car giant Toyota Motor will resume normal production from next week in several of its plants in China and in all of its domestic facilities that had been affected by the outbreak of the new coronavirus, as announced today.

The largest Japanese manufacturer in the sector by volume of sales has four vehicle assembly plants in China that were temporarily closed since the end of January due to the outbreak, and which gradually returned to operation, although below their maximum production volume.

Two of these plants, located Changchun (east) and Chengdu (west), will operate from Monday at the same level as they did before the temporary closure for the Chinese New Year, which lasted until mid-February, a spokesman for the company.

Two other Toyota plants in China will continue their production below usual, while all of its facilities in Japan will return to normal from next day 9.

At the time of making these decisions, Toyota “has given priority to the safety of all parties involved”, and in particular from “frontline suppliers” during the COVID-19 outbreak, said a company spokesman, based in Nagoya (central Japan), in a note distributed to the media.

The cuts in production will have a foreseeable impact on the results accounts of Toyota Motor, to which will be added the drop in sales in China, which is the second largest market of the Japanese leader of the car after the United States.

Sales of Toyota vehicles in China plummeted 70 percent year-on-year last February to 23,800 units, according to data published this week by the Chinese subsidiary of the Japanese manufacturer.

Other Japanese companies in the automotive sector such as Nissan, Honda or Isuzu were also forced to temporarily suspend production or reduce it due to supply interruptions and other logistical obstacles in China, where 30 percent of Japanese imports of parts come from spare.


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