Toyota Plunges as China Plants Stay Shut Two Weeks After Blasts – Bloomberg

Posted: Monday, August 24, 2015

Toyota Motor Corp. 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 9:52 a.m. as global stocks retreated and a strengthening yen pummeled exporters.

The automaker’s affiliate Tianjin FAW Toyota Motor Co. extended its production shutdown through Aug. 26, Itsuki Kurosu, a Toyota spokesman, said in an e-mail. About 4,700 Toyota and Lexus vehicles were damaged by the Aug. 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 Co. logistics center.

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 e-mail.

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

Comments

Write a Reply or Comment:

Your email address will not be published.*