Tianjin production shutdown hits Toyota

File picture: Francois Lenoir

File picture: Francois Lenoir

Published Aug 24, 2015

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Tokyo - Toyota Motor Corporation fell the most in 18 months in Tokyo trading after saying its biggest source of production in China will remain closed for at least two weeks following this month’s deadly explosions in Tianjin.

Toyota fell as much as 4.9 percent to 7,131 yen, outpacing the decline in Japan’s benchmark Topix index, which dropped 2.8 percent as of 9.52am as global stocks retreated and a strengthening yen pummelled exporters.

The automaker’s affiliate Tianjin FAW Toyota Motor Company extended its production shutdown through August 26, Itsuki Kurosu, a Toyota spokesman, said in an email. About 4 700 Toyota and Lexus vehicles were damaged by the August 12 blasts at a chemical storage site in Tianjin, and lingering safety concerns have prevented the company from accessing its facilities.

Toyota has emerged as one of the hardest-hit carmakers by the blasts at a warehouse holding toxic material that killed at least 121 people and injured 67 Toyota employees living in the surrounding area. The disaster took a broader toll on the auto industry, damaging 2 700 Volkswagen AG cars and shutting a nearby Hyundai Motor Company logistics centre.

Tianjin FAW Toyota built about 440 000 Crown, Reiz, Corolla and Vios cars last year, almost half of Toyota’s annual vehicle output in China. The affiliate’s plan was to produce about 35 000 vehicles this month from the two plants, Gao Tao, an analyst for IHS Automotive, said in an email.

Toyota’s operations will restart once the company is able to confirm the safety of its facilities and the surrounding area, Kurosu said.

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