Toyota’s Ontario supply chain feeling the pain

TORONTO — The shutdown of Toyota’s Ontario plants threatens to widen and close parts suppliers, automotive industry officials say.

Toyota Motor Corp. is stopping production at six plants Monday, including Woodstock and Cambridge, amid quality problems that have prompted huge vehicle recalls by the worlds No. 1 automaker.

According to the London Free Press, suppliers to those plants may be idled, since Toyota’s just-in-time delivery system means there is little storage for parts.

"There will be an impact throughout the supply chain, definitely," said Ted Kawashima, director of the Japanese Automotive Parts Industries Association in Michigan, representing Japanese parts makers in Canada, the U.S. and Mexico.

Toyota said Thursday it’s leaving the decision on whether to remain open next week with suppliers.

That will see some remain open and build inventory, while others may bring in workers for retraining, just as Toyota is doing, and others may shut down, said Kawashima.

"You cannot say everything will close or stay open – it depends what they are making and how their inventory is," he said.

Toyota has announced recalls of 2.4 million vehicles on three continents due to a sticking accelerator pedal. Toyota is suspending U.S. and Canadian sales and production of eight models: the Camry, Highlander, Corolla, Venza, Matrix, and Pontiac Vibe.

Toyota has more than 15 suppliers in the London area alone and the Japanese Automobile Manufacturers Association lists more than 60 parts plants in Canada feeding both Toyota and Honda.

"Given the just-in-time delivery system, it would not surprise me, there is a close link between the two," David Worts, director of JAMA said Thursday. "It remains to be seen how they will emerge from this but we hope they are doing the right thing, that they will address this appropriately."