Toyota Extends Shutdown after Second Quake Hits Japan

Toyota Motor Corp. says its will idle much of assembly capacity across Japan for about one week after a second earthquake struck the country on Saturday. The quakes have killed at least 41 people, injured thousands more and disrupted the carmaker’s supply chain.

Toyota suspended operations at its Lexus factory in Miyata on Friday after the first temblor struck on Thursday. The quake disrupted output at several facilities of Aisin Seiki Co., a maker of body components and die-cast parts.

Nissan Motor Co., which Aisin also supplies, idled its big assembly complex at Fukuoka last weekend. The company was expected to resume operations on Monday. Aisa Seiki says it will shift production to other facilities in Japan and elsewhere as needed.

Reuters reports that Tokyo-based Renesas Electronics Corp. suspended operations at its automotive microprocessor plant in Kumamoto last weekend after suffering equipment damage. The chipmaker continues to assess its production outlook. In 2011, Japan’s big earthquake heavily damaged Renesas operations and created six months of global shortages for chips used by numerous carmakers to operate everything from engines to power seats.

A natural disaster can quickly affect output by Toyota and many other large Japanese companies that follow a just-in-time supply philosophy. Reuters points out that the speed with which Japan’s manufacturing base recovers from last weekend’s quakes will reflect its success in implementing disaster plans developed since the 2011 quake.