Due to the Tianjin blasts in China that happened two weeks ago, Toyota Motor Corp. recorded highest drop in Tokyo trading first time since the 2011 tsunami. Sources close to the company commented that the production in China are going to be shut for at least two weeks due to the deadly explosions.
Since March 15, 2011 Toyota plunged 6.7%, the steepest drop for the company since then. This is also lesser than the 5.9% slump of the company in Topix, which is benchmark index in Japan as global stocks retreated with exporters severely criticized with the strengthening yen.
The affiliate of the automaker Tianjin FAW Motor Co. announced extending shutdown of production through August 26, as stated by a Toyota spokesperson Itsuki Kurosu, by e-mail.
Due to the August 12 blasts, about 4,700 Lexus and Toyota vehicles were damaged that happened at a chemical storage site in Tianjin, and the continued safety concerns have forced the company to stay away from accessing its facilities.
Due to the blasts, Toyota is the one hardest –hit, in which toxic material from a warehouse killed 123 people and caused 67 causalities of Toyota employees that reside in the area.
More than this, the disaster took a larger toll on the auto industry, in which 2,700 Volkswagen AG vehicles were damaged. Due to this the nearby center of Hyundai Motor Co was shut and forced Fuji Heavy Industries Ltd. to reroute car shipments to Shanghai.
Last year, Tianjin FAW Toyota manufactured almost 440,000 Crown, Corolla, Reiz, and Vios cars, which is about half of Toyota vehicles manufactured in China annually. Prior to this, the affiliate of the Toyota Company had plans to manufacture 35,000 vehicles in this month from two plants, as stated via e-mail from an analyst at IHS Automotive.