Toyota Motor Corporation suspended its production after an explosion, which affected its production lines.
The Japanese automotive company confirmed that it would halt the production shifts on two lines operated by Hino Motors Ltd. Also,the Toyota East Japan paused the plant operated by Daihatsu Motor Co Ltd.
On Monday, an explosion happened on one of the factories at the Aisin Advics Corporation which is owned by the Toyota Group and a producer of breaking systems.
A spokesperson from Toyota explained that they will continue to monitor the parts supply status and decide on how to proceed with operations on each line as necessary. Beforehand, the company dealt with the supply chain disruption after the massive damage caused by the earthquake and the fire at a steel plant.
Toyota is expected to go full scale recovery in June as no estimated impact of the suspensions are forecasted yet.
Toyota withdraws units from Mexico
In Mexico, Toyota withdrew 100,000 units after being reported of having defective airbags which have been associated with a number of accidents and deaths globally. Corollas, Yaris subcompact model and the Sienna minivans were just some of the models which were recalled in South America and other areas.
According to the data shown, around 34 million vehicles are affected by the passenger-side airbags produced by Takata and another 7 million worldwide. A report from the New York Times revealed that there was a total of 139 reported injuries, however, Toyota still says that no injuries nor death are involved on its vehicles.
Meanwhile, Takata blamed the rust, bad welds and the gum in one of the inflators. Prior to this, Takata claimed that the propellant chemicals were not handled properly, which made the metal airbag inflators to explode with too much pressure inside.
Recently, the Toyota Motor Sales USA Inc. reported a drop of sales in May for 9.6 percent to 219,339 units and a daily basis the sales fell 2 percent. Based on the report, the Toyota band sales slipped 9.5 percent to 192,657 units.
Bill Fay, Toyota division group vice president and general manager said that industry sales remain steady in May with the shift toward light trucks and SUVs continuing. He added that mirroring that trend, Toyota division SUVs had a best-ever month, led by RAV4, Highlander and 4Runner.
The sales of 4Runner soared 21 percent to 10,352 units, marking the second month of more than 10,000 units sold and the sales of RAV4advanced 12 percent to 32,261 units.
Toyota trades higher
In other news, extended its partnership with Yahoo after sponsoring the live stream of Yahoo and Tumblr of the recently concluded Sasquatch! Music Festival. Toyota made a joint deal with Tumblr for additional content and to Yahoo for ad space before.
Shares of Toyota Motors Corporation ticked up 0.11 percent to 5,675.00 JPY earlier today. The Japanese automotive manufacturer has a market capitalization of 18.94 trillion yen and a price earnings ratio of 7.74. It has a dividend yield of 3.70 percent.
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