Toyota Warns U.S. Dealers of Coming Vehicle Shortage (TM)

Toyota Motor Corporation TM told its U.S. dealers that supplies will be affected as a result of the March 11 earthquake and tsunami. Bob Carter, Toyota's vice president of U.S. sales, said that it will build vehicles at “significantly reduced levels.” Shares of Toyota have been hit hard since the quake, falling more than $10 in a month. The disaster only exacerbates the recall problems the company was looking to recover from. A Bloomberg report notes that "Toyota, which estimates that North America generates about 60 percent of its operating profit, said last week it would suspend production at auto, engine and parts plants in the region for five days this month because of a shortage of Japan- made components. The company plans to restart all plants in Japan by April 18 at half of their capacity, it said last week." Carter commented that “What we don't know are vehicle production levels for May through July. The potential exists that supply of new vehicles could be significantly impacted this summer.” Toyota Motor Company is a Japanese-based company engaged in the automobile and financial business. Shares closed lower by $1.38 on Monday, to $76.50.