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Getting your new 2016 may be a problem in the near term - Toyota steel plant blew up

Discussion in 'Gen 4 Prius Main Forum' started by Eug, Jan 30, 2016.

  1. Eug

    Eug Swollen Member

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    Toyota may halt Japan car output in February due to steel shortage| Reuters

    Toyota Motor Corp said on Saturday it may halt production at its domestic plants early next month due to a steel shortage, following an explosion at a steel plant operated by one of its affiliates.

    The blast an Aichi Steel plant has curbed production of steel parts, which may impact output at the world's best-selling automaker which produces around 40 percent of its global output in Japan.

    "At the moment, there is enough supply inventory to keep our domestic plants running until Feb. 6," a Toyota spokesman said, adding that overtime and weekend shifts for next week had been canceled.

    "After that, we will be monitoring our supply situation on a day-by-day basis and decide accordingly."

    Aichi Steel said that the Jan. 8 explosion at its Chita plant in central Japan dented production of special steel parts. It added that it aimed to resume operations in March.


     
    cwerdna and Mendel Leisk like this.
  2. frodoz737

    frodoz737 Top Wrench

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    So much for any discounts.
     
  3. UserError

    UserError Junior Member

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    Just placed an order yesterday. I wonder what that means for me.
     
  4. civicdriver06

    civicdriver06 Active Member

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  5. 48mpg

    48mpg Member

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    there is steel in a Prius???
    are you sure?
    I only found plastic and some thick tinfoil.
    mod edit - *please leave political in nature (or jest) commentary in the political forum. Thank You*
     
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  6. kammssss

    kammssss Member

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    Don't worry...gas is so cheap that demand won't be that high for any eco cars. The trend is back to SUVs, trucks, and crossovers.
     
  7. KennyGS

    KennyGS Senior Member

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    IMO, there seems to be some leeway in their statement that may indicate they'll be considering alternate sources for steel. Otherwise, they'll need to start prioritizing which vehicles will get steel.
     
  8. bisco

    bisco cookie crumbler

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    i hate when that happens...

    time to start melting down the manhole covers.

    larger cars need more steel.

    i hope no one was hurt.
     
  9. wjtracy

    wjtracy Senior Member

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    The question would be how many vehicles already in shipment process
     
  10. bwilson4web

    bwilson4web BMW i3 and Model 3

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    Failing to have the Mississippi plant make Prius turns out to have been a mistake. I suspect USA plant production will not be affected.

    Bob Wilson
     
    #10 bwilson4web, Jan 31, 2016
    Last edited: Jan 31, 2016
  11. Eug

    Eug Swollen Member

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    Well, the article states the explosion occurred Jan. 8, and Toyota only mentioned the issue Jan. 30, saying the only have 1 more week left of inventory of steel parts. So, it seems that even if they were trying to source steel elsewhere, they haven't been successful.

    Ironically, I ordered our RAV4 Hybrid Jan. 9, the day after the explosion, and we were informed of the car's arrival at the dealership (Canada - GTA) on Jan. 30.
     
  12. bisco

    bisco cookie crumbler

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    i wouldn't buy a car made with alternate steel, seems it might be a compromise. or perhaps it's just a cost thing.
     
  13. David Beale

    David Beale Senior Member

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    The RAV4 is made in Canada at the Ontario plant. Including the Hybrid, according to the "Driving Television" show on Global TV.
    Do note that many of the parts that plant made are used in assembly plants all over, not just Japan.
    Also note that anyone who ordered in the last month will probably still get their vehicle on time. It's the newer orders that could be delayed. And those Japanese who ordered the, what was it, 100,000 Prius? They will be waiting. Maybe that's why the plant had the explosion. It overheated from the rush to produce. ;)

    Oh, and bisco, it is just as likely the "alternate steel" is better quality. Originally rejected due to cost, but now needed at whatever cost.
     
  14. RRxing

    RRxing Senior Member

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  15. KennyGS

    KennyGS Senior Member

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    I'm guessing the lead time for a production order of steel takes at least 8-12 weeks - maybe longer. They might be able to pay a premium to reduce that time, but that would put a major dent in profits.

    This is definitely a major blow to Toyota.
     
  16. Eug

    Eug Swollen Member

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    The RAV4 (including the hybrid) won't be made in Canada until 2019.

    It's replacing the Corolla, which is moving from that Canadian plant (Cambridge, Ontario) to Mexico.
     
  17. frodoz737

    frodoz737 Top Wrench

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    Could of sworn our 2014 Corolla was made in MS. Reference Please. If this is true they are moving to Mexico...big mistake.
     
    #17 frodoz737, Jan 31, 2016
    Last edited: Jan 31, 2016
  18. spwolf

    spwolf Senior Member

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    Rav4 has been made in Canada for a long time now... what you have read about Corolla plant being re-configured for Rav4 production is true and is done to satisfy demand for Rav4 that current Canadian plant can not. They will be basically doubling the Rav4 production in Canada when new model arrives in 2019. They expect it to outsell Camry by then.

    Currently roughly around 50%-60% of Rav4's sold in the USA are imported from Japan. So this is going to affect Rav4's as well.

    As to current predicament, they plan to recover any lost production by March 30th so I dont think anyone will have to wait too long anyway... It is Japanese customers that will be affected the most since Prius had huge waiting list as it is.
     
  19. bisco

    bisco cookie crumbler

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    first world problems.
     
  20. ElectricSpike

    ElectricSpike Member

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