Toyota has suspended day-shift operations at three Japanese plants today (11 September) because of flooding following heavy rain in certain areas. The three plants are operated by Toyota Motor East Japan, a wholly owned subsidiary of Toyota. The affected plants are located in Miyagi and Iwate prefectures in northeastern Japan. According to Toyota spokesperson Kayo Doi, the plants have not suffered any damage and the move is intended to ensure the safety of employees. Toyota is expected to resume operations at the three plants from this evening.
Significance: According to IHS Automotive data, Toyota's Kanto Iwate plant, located in Iwate, produces the Aqua hybrid, the Belta and the ist. Kanto Auto Works, a subsidiary of Toyota, launched a new line at its Kanto Iwate plant when the Aqua hybrid started production there. This additional line has allowed Kanto to double its annual production at the plant to 300,000 vehicles. The Kanto Iwate plant is now a Toyota Motor East Japan facility following the merger of Kanto Auto Works, Central Central Motor, and Toyota Motor Tohoku in July 2012 to become Toyota Motor East Japan. During 2014, it produced a total of 298,787 vehicles, mostly comprising the Aqua with 286,855 units. It is forecast to produce a total of 272,696 units in 2015, down 8.7% year on year. IHS Automotive forecasts that its utilisation rate will stay at around 90% in the short term, even as the Aqua nears the end of its lifecycle, thanks to strong domestic demand. In addition to the Aqua, we expect that the all-new B-CUV with TNGA architecture will be added to this plant in late 2016. Meanwhile, the other two affected plants located in Miyagi (Sendai plant) produce the Corolla and Sienta, and engines respectively.
