Down but certainly not out, Toyota expects its production levels to make a full recovery to the level they were before the March 11 earthquake in Japan, the company announced in a statement this week.
Plagued delays stemming from the destruction that Toyota and its suppliers have felt over the few months, the automaker estimates the damages exacted upon the company to be in excess of $4 billion between destroyed facilities and car supplies lost. Overall, net profit for the fiscal year that started April 1 is expected to fall 31 percent to 280 billion yen, or $3.4 billion. Operating income is estimated to decline 36 percent to 300 billion yen, or $3.7 billion, leaving Toyota no choice but to give up its spot as the world’s biggest car manufacturer.
Even so, Toyota shows signs of improving, getting eight of its North American plants back up to full production levels as of June 6. Toyota plans to have the rest of its North American plants operating at full capacity by September.
“After September, we will focus on making-up lost production as much as possible,” said Steve St. Angelo, executive vice president of Toyota Motor Engineering & Manufacturing, North America, in a company statement. “Our team members and suppliers here and in Japan have worked tirelessly to get us back to 100 percent, overcoming many challenges. The effort in Japan has been incredible, especially in the midst of such tragedy and devastation.”
As Toyota’s global suppliers come back online and restore its factories to full capacity, Toyota will undoubtedly try to pick up where it left off before the natural disaster struck.
Sources: Toyota, The Detroit News