Toyota Boshoku’s Toyoda Says Japan Power Cuts May Boost Costs

Shuhei Toyoda, president of Toyota Boshoku Corp. (3116), Toyota Motor Corp.’s main supplier of car seats, comments on possible power shortages this summer, after all of Japan’s 54 nuclear reactors were shut down.

The Japanese government today asked companies in the Chubu area, where Toyota Boshoku is based, to cut electricity usage by 5 percent compared with 2010 on business days from July 2 to Sept. 28, according to a press release.

On effects on Boshoku’s domestic production:

“We have paid to install power generators at our domestic factories to create electric power on our own. The equipment is powered by oil and the price of oil is currently rising. That means higher production costs for us. I want the government to think about the situation carefully.”

On outlook for car demand in Europe, China

“Car demand in Europe isn’t good. We decided to build a Czech plant next year with a hope that the sales would recover to the level the region had enjoyed in the past. For China, views are divided. Some inland provinces still see economic growth of almost 15%. Some think China has potential for further growth.”

To contact the reporter on this story: Masatsugu Horie in Osaka at mhorie3@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net

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