Report: Parts Shortages Force Toyota to Halt Some Production

Industrials FOXBusiness

Toyota Motor Corp. (TM) told its employees in a memo on Wednesday that it expects to have to halt auto production at several of its North American plants, due to shortages of parts coming from Japan, according to reports.

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“Our supply line has reached a point where it is clear we will incur some non-production time," Toyota's memo said, according to the Wall Street Journal. The paper said the company was uncertain about how long production would be halted.

Toyota went onto explain in the memo that the devastating earthquake and subsequent tsunami in Japan had significantly damaged many of its parts suppliers, disrupting the auto maker’s supply line, the paper said.

The auto maker noted it currently has “ample supply” of most products and it has reopened many of its parts plants in Japan, doing everything possible to guarantee dealers “have products available for customers,” the Journal’s report said, quoting the memo.

Shares of Toyota fell 86 cents, or 1%, in Wednesday’s session, closing at $82.14 a share. The stock was down another 64 cents in after-hours trading.