Wednesday, May 21, 2008

Toyota’s Joint Venture in China Resumes Production

The recent earthquake in China caused a heavy loss in the country. Due to the devastating earthquake, Toyota Motor Corp.’s joint venture with FAW Group, a local car maker, was halted for a week. However, the production of the auto plant has started again after a week off. The good thing is that none of the employees of the joint venture of Toyota Motor Corporation (TYO:7203) was injured due to earthquake. Initially, the production activities of day shift have been started. Coaster microbuses and Prado sport utility vehicle are being produced in the plant.

AP reported:

Toyota lost production of 380 vehicles over the one-week stoppage, Nolasco said. The plant makes about 80 vehicles a day.

Nolasco noted that the loss is not great for Toyota, Japan's biggest automaker, which makes about 9.5 million vehicles a year.

"We're not in rush to start churning those vehicles out," he said, adding that the company was monitoring possible effects of the quake on the quality of the products.

So, you can understand that the plant is very important for the joint venture company and the earthquake affected the company too. Toyota is a major car manufacturer in the world and the company is not doing well in its US market due to economic recession over the last one year, but its performance in the emerging markets like China has been pretty much satisfactory. Now, let us see to what extent, Toyota has been suffered by the earthquake in the current quarter of the year.