Toyota Motor Corp. and Honda Motor Co., Japan’s two largest carmakers, may modify their so-called “just-in-time” manufacturing system to avoid possible supplier bankruptcies disrupting production. General Motors Corp. and Chrysler LLC are battling to restructure after winning $13.4 billion in emergency federal loans to keep them operating through March. Detroit’s woes could lead to a “supplier shock,” crippling U.S. production at Japanese and other foreign carmakers, according to the Center for Automotive Research.
“We continue contingency planning” even after the bailout, Mike Goss, a spokesman for Toyota’s North American manufacturing unit in Erlanger, Kentucky, said by e-mail. “We hope the loans provided to Detroit will also help to stabilize suppliers, but the very slow market remains a concern for all.”
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