Toyota Phl expects production to normalize by November or December

MANILA, Philippines - Toyota Motor Philippines (TMP) expects its production to normalize November or December, the same time its mother company Toyota Motor Corp. (TMC) achieves full production normalization.

At the same time, TMP admitted its supply of imported vehicles is affected and that its dealers have experienced a temporary limitation in supply of vehicles.

“TMC still expects to achieve full production normalization in November or December 2011. TMP expects production operations to normalize at the same timing,” TMP vice president Rommel Gutierrez said in an interview.

According to Gutierrez, TMP has adjusted its local production in order to factor in the supply limitation from Japan as a result of the twin disasters. The earthquake and the subsequent tsunami which hit parts of Japan greatly affected the auto industry worldwide as some of the vital auto parts are still made in Japan.

Gutierrez said as of the moment, TMC is already at 70 percent of its production levels and it is expected to improve in the coming weeks.

From zero production from April 28 to 29, TMP has bounced back to 4.5 days production with two shifts per work day this July.

TMP did not say how much they are currently producing per day. The Sta. Rosa plant manufactures Inova and Vios. In terms of target, Gutierrez said they still have not made any changes in their production plan this year. He said it is still too early to make a concrete response because their target will depend on the recovery situation.

Gutierrez said they are still assessing the supply condition of the production parts in close coordination with TMC, Toyota Motor Asia Pacific and local parts suppliers. He said that around 39 percent of the service parts are being sourced from Japan.

In terms of imported vehicles from Japan, Gutierrez admitted that there are shortness in supply but the supply line is getting better.

Seven out of 15 vehicles are imported from Japan like the Alphard, Hiace, LC200, Prado, Previa, Prius and Rav4. Likewise all the Lexus models are from Japan.

To date, Gutierrez said they continue to receive parts from Japan that were already in the pipeline that is why the immediate impact was cushioned. “We will continue to work closely with TMC, Toyota Motor Asia Pacific and local parts suppliers to minimize any disruption to TMP’s overall operations,” he explained.