Toyota to halt production at 5 European factories

Toyota is one auto mobile company which was the most affected by the earthquake in its home country. The auto major was struck badly with this natural disaster in the country of origin and since then running short of supply. As per the latest report the company has decided to put a hiatus on the vehicle production in Europe. The company officials have also informed the US dealers about the shortage of supply which will occur due to this halt.

The reports say that the production facility at five of the company’s European plants will undergo a pause from the month end till mid may. The major reason behind the production cut is the shortage in the supply of parts. Some time back the news was out from Toyota’s stable that the US sales chief, Bob Carter has informed its dealers about the upcoming shortage in the summer season. In the mail he mentioned that for now the company has good amount of inventory but soon it will be consumed and availability will thus be affected at later stage.

With this it can be stated that Toyota will have to go through a tough time this summer when the supply will be hard to match with its demand. The Toyota car models especially Toyota Etios is attracting high demand in Indian auto market and a delay in its delivery will certainly affect the image of company. The low production will also leave a stress on the company’s potential to capture a larger market in auto world.

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