Tuesday, April 5, 2011

All Toyota's (TM) American Plants to be Shut Down in April

Toyota (NYSE:TM) plants in North America will all be shut down in April, said the company, saying it is inevitable that they will all have to be shut down temporarily during the month.

More than likely the shutdowns will be in the latter part of April, as parts shortages increase as the month goes on.

American-based companies have been spared more of the pain because some of their parts were already being shipped when the earthquake in Japan hit, helping them to have minimal disruption so far, although that's going to increase if things don't turn around soon.

It's unclear at this time whether or not all the factories will be closed at once or it'll be staggered.

Ford (NYSE:F), General Motors (NYSE:GM), and others said they will be forced to shut production even more, as their supplies are running low.

Only the restart of production in Japan could keep that from happening, an unlikely scenario.

Toyota closed Monday at $79.48, dropping $1.03, or 1.28 percent.

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