Home > Ask Gary > Ask Gary: What is the impact of the earthquake and tsunami on Toyota?

Ask Gary: What is the impact of the earthquake and tsunami on Toyota?

With the ongoing disaster in Japan, our customers have begun asking about the impact on Toyota.

Before we get to that, let me first say our hearts and minds are with the victims and their families.  For everyone interested in sending donations to Japan, we have heard the best option is to send money, since it’s easier to buy the goods needed from sources nearby in Asia rather than ship them from the US.  We have also heard it’s best to send your donations through trusted sources such as the American Red Cross.  Additionally, the Boston Red Sox have also set up a program where 100% of all fans’ donations will support relief services underway by the Red Cross in Japan.

Regarding the production shutdowns at Japanese manufacturers – Toyota said on Wednesday, March 16th that all 13 of its North American plants are running normally, despite the temporary shutdown of Toyota plants in Japan.  It’s worth noting that 70% of the Toyota (and Lexus) vehicles sold in the U.S. are made in North America — including the Camry, Corolla and RAV4 — and most parts and materials for these American-built vehicles are provided by suppliers in North America.  So Toyota’s North American plants are insulated from production interruptions in Japan.

As for the Prius, which is built in Japan, dealer inventory levels are generally still adequate.   While one of Toyota’s three Japanese hybrid battery plants sustained limited damage from the earthquake, the other two are located in central Japan and continue to operate.

We will continue to monitor the situation for Toyota and keep you posted as we learn more, while our focus remains on the Japanese people

– Gary

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