Toyota Has Warned Her U.S. Plants -- Prepare to Shut Down

A feature of the just-in-time system of manufacturing is that not only are few if any products stockpiled anywhere but on store shelves, but that spare and component parts are also rarely kept on hand in any significant number. Hence, it comes as no surprise that Japanese carmaker Toyota has told all of its U.S. plants to be prepared to shut down. After all, once they are out of the parts they need -- built only in Japan, and now built nowhere at all -- they have no choice but to cease production.

Though the company insists a shutdown is not inevitable, Toyota's manufacturing has halted in Japan.

This situation impacts the entire auto industry, as Toyota makes parts used by other manufacturers. A sustained shutdown of her Japanese plants will apparently hamper if not disable the plants of at least some of her competitors.