When a company’s product is in such demand that they cannot produce enough to satisfy their customers’ needs, such a company might be thought to be in an enviable position. Toyota, the World’s largest automaker, has a whole range of cars and vehicles that thousands of people want to buy – but the Japanese company simply can’t keep up.
Floods in Thailand have had a substantial affect on the firm’s ability to produce vehicles – because so many important components are made in the South East Asian country. As a result, manufacturing operations in many other countries have been ramped down.
The Thai floods are the latest natural disaster to affect the carmaker; the previous one being the Japanese earthquake in March, which left many dead and homeless. The human tragedy was compounded by the damage to the Japanese economy, itself affecting jobs and livelihoods.
The Thai floods are said to have reduced output by around 150,000 vehicles.
But while second quarter profits have dropped by 18.5%, it may have been a lot worse; demand for Toyota products from emerging economies has meant that year on year, vehicle sales are up.
But much like the steps required to carry out breakdown cover assistance, Toyota has coolly and calmly applied its vast experience and talent for efficiency to a situation that many smaller carmakers might fall foul of.
Toyota expressed hope that a significant recovery will be made as regards its Thai manufacturing facilities in early 2012.
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