A late breaking Wall Street Journal article published in the U.S. indicates that Toyota Motor Company will suspend dealer sales of eight different Toyota models that are involved in the ongoing product recall involving sudden acceleration of vehicles. Because of this suspension, Toyota is expected to suspend production of vehicles next week.

The models involved in the current recall include the Avalon, Camry, Corolla, Highlander, Matrix, RAV4, Sequoia and Tundra. Toyota had previously issued a recall of 2.3 million vehicles last week, along with other recalls in past weeks.

Needless to say, this development is unprecedented, and has potential far reaching impacts related to automotive supply chain disruption, if the suspension continues for a lengthy period.  While details remain sketchy, Toyota has either reached a point of serious concern related to the safety of its vehicles, or is taking extreme measures to insure that the problem is root-cause identified and corrected.  I suspect that the problem is far more than a sticky accelerator as noted in the Journal article, and probably more to do with engine control electronics. In either case, this is a significant development.

Supply Chain Matters will strive to provide more commentary as more information becomes available.

Bob Ferrari