Toyota to slow production

TOKYO, Mar 24 (agencies): Toyota Motors, the world's biggest carmaker, will slow production at some of its factories in North America due to a shortage of parts. The company said it was not sure how many factories would be affected and how long the slowdown would last. Toyota has already halted production at all of its 12 assembly plants in Japan until 26 March. It has been facing a shortfall in parts after the devastation caused by the earthquake and tsunami in Japan. Toyota will resume production of some hybrid models in Japan from Monday but rival Honda will extend a suspension of auto assembly amid continued disruption caused by the March 11 earthquake. Toyota on Thursday said it would resume production of its Prius and some Lexus hybrid models because it now expects to be able to procure parts by then and wants to prioritise output of models with higher demand. But Honda said it would suspend auto production until April 3 at two domestic plants amid parts shortages due to disruption caused by the impact of the 9.0 magnitude earthquake and tsunami, and also a limited power supply. The company, however, will resume production of motorcycle and power products at its Kumamoto plant from Monday. Economists are reviewing daily their increasingly bleak forecasts for an economy that has seen infrastructure along the northeast coast shattered, while power outages hit the Tokyo region. Firms have closed plants, hitting output. Exports of key components and equipment used in the assembly of goods abroad, such as silicon wafers, liquid-crystal displays and electric machinery, have also been hit, last week sending shockwaves across global markets. Japan last Wednesday said the cost of the March 11 earthquake and tsunami could hit 25 trillion yen ($309 billion), more than double the 1995 Kobe earthquake and nearly four times more than Hurricane Katrina. The estimate does not account for wider issues such as how radiation from the stricken Fukushima nuclear plant crippled by the quake will affect food and water supply, amid a deepening food scare and unresolved atomic crisis.