Toyota sees slower growth due to Japan crisis

Toyota Motor Philippines Corp. expects only a slight increase in sales this year to around 57,000 units from last year’s 56,855 units, due to the effects of the Japan crisis.

In an interview with reporters on Wednesday, TMP president Michinobu Sugata said the vehicle assembler really felt the impact of the supply chain disruption caused by the Japan disaster, with sales slowing by 23-26 percent in May and June.

It was also during those two months that the company reduced its production, halving its output and implementing a three-day workweek, just to stretch its available parts inventory. Other auto manufacturers did similar production reductions.

The March 11 Japan earthquake that triggered a tsunami and a nuclear disaster severely disrupted the supply chain for key components. Even completely built-up units (CBUs) could not be transported due to damaged airports and seaports.

“Without units to build and similar limitations in imported CBUs, we experienced a decline in sales in May and June. Some of our competitors apparently took advantage of our setbacks, and our leadership was in question,” he said in a speech during Thursday’s launch of the new Hilux and Fortuner.

“However, I am now very confident that with the restoration of normal parts supply, the full resumption of two-shift operations at our Sta. Rosa plant from June 6, and the improvement in the availability of CBUs, we have been able to recover the fastest among our competitors who were also affected by the disaster,” he said.

For this year, Sugata said TMP was on track to surpass last year’s sales by a few hundred units to reach 57,000 units.

“It’s quite challenging, but with the Hilux and Fortuner coming out this year and some new models to be launched next year, we see no more problems (for the remaining part of the year and next year),” Sugata said.—Abigail L. Ho