Toyota Closed Production Plant Yet Again
The Country’s deteriorating economic charts are not giving the auto makers a chance of survival. However, the car companies are announcing back-to-back production shutdowns. Not surprisingly, these productions halts are not proving helpful in the face of low sales (MoM).
Following Pakistan Suzuki Motor Company (PSMC), Indus Motor Company (IMC), the manufacturer of Toyota vehicles in Pakistan, has once again made the decision to close the production facility in the face of shortage of raw materials and components (no inventory).
The Closure
As per the company’s notification, the recent closure of car production is scheduled to take place from June 26 to June 27. The automobile company informed the Pakistan Stock Exchange (PSX) about this development through a notice on Friday.
The automaker stated that both the company and its suppliers are currently facing difficulties in importing raw materials and obtaining clearance for their shipments. These challenges arise from issues related to opening Letters of Credit (LCs) and supply problems caused by specific foreign vendors.
IMC said, ““This has disrupted the supply chain of the company and the vendors are unable to supply raw materials and components to the company. Accordingly, the company has insufficient inventory levels to maintain production, therefore the company is unable to continue its production activities”.
“In view of the above, the company has decided to completely shut down its production plant from 26 June 2023 to 27 June 2023 (both days inclusive),” it added.
It is worth noting that this is the fifth instance of Indus Motor Company (IMC) declaring a production closure in the current year. Previously, the company had announced complete shutdowns of its plant on the following dates: June 3 to June 8, May 2 to May 3, February 1 to February 14, and once again from March 24 to March 27. These closures were attributed to a shortage of inventory.