Toyota Speaks Out On the Post-Earthquake Scenario

For the first time after the earthquake and tsunami that have shattered littoral Japan, the management of the world’s biggest automobile manufacturer, Toyota Motor Corporation, met the media on Friday and explain the Company's position consequent upon the impact of the earthquake.

Market has been rife with speculation about when production would return to normalcy in Toyota.  In his address to the media at press conference, Toyota President Akio Toyoda said: "By telling dealers the timing of the recovery, they can have a better conversation with their customers. Dealers right now cannot talk to their customers about delivery timing. They can't talk about specifics. Sales people are having a difficult time."

Setting the speculation at rest, Mr. Toyoda was hopeful that by November the factories will collectively return to normalcy across the world and, especially, in Japan. However he confirmed that factory suspensions have bottomed out and output will start bouncing back to normal this summer.

By laying down the timeframe and removing the uncertainty looming large in the markets about the status of Toyota's factories, Toyota has made it easier for its dealers across the world to chalk out their strategies. The clarification will also help hoardes of investors across the globe to plan appropriately.

Currently the production in Toyota's Japanese facilities is half the normal and Toyota is expected to increase its production by July through its other factories outside Japan. Toyota wants to make its supply chain return to normal by the end of this summer. "The best thing we can do for those dealers is supply cars as quickly as possible," Toyoda said.

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This is the first time that any major auto maker in Japan has come forward and revealed its strategy and forecast the timeline for the Japanese automobile sector to retrn to the status prior to the earthquake.

Toyoda further said, "Just last night, in the area around Tokyo, we had another aftershock. Because of such things, it can reverse the progress being made. So it is difficult to read what will happen."

Toyota has been suffering heavy losses due to this earthquake and as per market by April Toyota expects to lose sale of 500,000 units across the world.