Workers At Idled Toyota Tianjin Auto Plant To Return Monday
Toyota Motor Corp. (TM, 7203.TO) said Sunday that it will resume operations at an auto assembly plant in China starting Monday as a strike at a local parts plant was settled Saturday amid labor disputes spreading at automobile factories in the world's biggest auto market.The Japanese car maker will restart operations at its car plant in Tianjin after a shortage of certain plastic interior parts from the parts producer, where workers walked off the job Thursday, started disrupting operations at the car plant Thursday night, a Toyota spokesman said. All three production lines at the Tianjin auto plant were idled by Friday afternoon.
Toyota halted production temporarily at a crucial time for the auto maker, which saw a relatively moderate growth in sales in China of 21% to 700,900 vehicles last year compared to a nearly 50% surge in the country's overall market to about 13 million vehicles.
The auto plant in Tianjin is one of Toyota's largest in China, with an annual production capacity of 400,000 vehicles.
Labour disputes over pay are spreading in China in the auto and some other industrial sectors.
Among the companies recently hit by strikes in China, Honda Motor Co. (HMC, 7267.TO) is facing a string of disputes at auto parts factories that pushed Honda to suspend temporarily its auto assembly production from late last month to early this month.
Toyota was forced to halt auto production as it was unable to procure sufficient parts from one of Toyoda Gosei Co.'s joint auto parts production ventures due to the strike. Toyota owns a 42 % stake in Toyota Gosei. The venture is called Tianjin Toyoda Gosei Co..
Toyoda Gosei wasn't immediately available for comment.
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