Toyota Phils to cut production by 50%

Published by rudy Date posted on April 29, 2011

Manila, Philippines – After shutting down its manufacturing plant for three days, Toyota Motor Philippines (TMP), the country’s largest auto manufacturer, announced it will cut its production by 50 percent and will reduce its work week to only three days as it grapple with the aftermath of the twin disasters in Japan.

In an interview with reporters before his meeting at the Board of Investments (BOI) Wednesday afternoon, TMP vice president Rommel Gutierrez said they have decided to implement measures to help them cope with supply shortage.

Gutierrez was at the BOI to inform the agency of his company’s decision regarding the production of Vios and Inova at their Sta. Rosa, Laguna plant.

Likewise, Toyota said the two shifts per day will be cut. Toyota said that while half of the workforce is in production, the other half will be in training.

The three-day workweek will only be in effect until June. The Toyota plant in Japan is expected to be fully operational by June. Toyota said that regular working days may even be restored sooner but it will be dependent on its mother company.

Gutierrez refused to answer until when Toyota’s parts inventory will last if no new shipment will come to replenish their stock. He likewise said the company will work on achieving its yearend sales target despite the reduced production.

Earlier, Gutierrez said they will have three non production days from April 18 to 20 due to temporary limitation in supply of production parts.

“At this time, we plan to recover these non-production days in the coming months. All other business units, on the other hand, will be operating under normal conditions. TMP will continue to monitor the overall supply situation in close coordination with TMC Japan and our local suppliers,” he said.

Gutierrez said Toyota is producing 30,000 units of Inova and Vios annually at their Sta. Rosa plant.

He said they have a daily production of 120 units per day. Gutierrez denied that they will be implementing a forced leave due to the plant closure. –Ma. Elisa P. Osorio (The Philippine Star)

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