Toyota gets many of their car parts from Thailand. But with the new floods affecting that area of the world, Toyota may have to lose some production time on their vehicles, affecting the supply chain to America.
Thailand is going through a huge flood right now, which may be affecting the supply of Toyota vehicles. Typically Thailand is used to large amounts of rain for six months out of the year because of monsoon season, but right now they are receiving an abnormally large amount of rain.
Unfortunately for Toyota they receive a lot of their parts from Thailand and the rain has caused many people to relocate and factories to close. Experts believe that this over flooding problem may cause a repeat of the Japanese tsunami situation. In that case, prices for Toyota vehicles are expected to rise and the incentives to drop.
Toyota has officially claimed that production will not cease, but they have already stopped all production in Thailand and have cut back production in a few of their Japanese plants. They also are considering cutting back production by one day a week in some of their American plants. They claim however that they can switch production to some plants in Malaysia and the Philippines.
But consumers should still be wary of buying Toyota vehicles. Despite what they may claim it is very likely that they will be affected by the floods in Thailand. Toyota prices are likely to jump, and dealers may be weary to cut deals for consumers. There’s no reason you should have to buy a car for an over inflated price when you get quality vehicles elsewhere for much less.
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