Honda Cuts U.S., Canadian Output By Up To 50% Due To Parts Shortages In Japan

The Tohoku earthquake and tsunami that struck northern Japan on March 11 has affected millions of Japanese citizens, their families, and businesses. The country's auto industry was hard-hit -- both directly and indirectly -- and most Japanese automakers halted operations to grieve for lost workers, allow families time to re-connect, and assess damage at facilities.

The effects soon rippled outward to other countries, pointing out how quickly local incidents can have a major impact on global production. The latest news comes from Honda, which says that operations at some U.S. and Canadian plants will be cut by up to 50% due to a lack of parts from Japanese suppliers directly affected by the disaster.

Honda factories in Lincoln, Alabama, Greensburg, Indiana, Marysville, Ohio, and Alliston, Ontario will see most, if not all shifts cut to four hours. Honda's facility in East Liberty, Ohio, however, will run a nearly normal schedule, as will plants in Anna, Ohio and Jalisco, Mexico. Together, those plants build a wide range of models, including the Honda Accord, Civic, Element, Odyssey, and Ridgeline, as well as the Acura RDX and Acural TL.

Honda has not said which parts are causing the slow-downs, nor has it indicated which vehicles are most directly impacted by the shortage, but Honda spokesman Ed Miller has reiterated that "We're not shutting down anything." As of yet, we've heard nothing about price increases on Honda vehicles, although there have been reports of dealers scaling back incentives.

Employees affected by Honda's production scale-backs have three options: they can stay on-site during non-working hours and keep their normal pay; they can take vacation time; or they can take time off without pay, but with no negative impact on their attendance.

It should go without saying that our thoughts are with the people of Japan and their families as they begin the process of recovery. If you would like to contribute to their efforts, please consider making a contribution through the Red Cross or other service organization.

[AutoNews]

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Toyota, Ford to halt plants in wake of Japan earthquake

Wednesday, Apr 13th, 2011 @ 2:15 p.m.

Toyota and Ford have announced additional assembly plants across the globe that have been affected by parts shortages caused by the earthquake and tsunami that hit northern Japan last month.

Although most of its plant closures have been in Japan, Toyota now says that it will halt production in Europe for eight days beginning April 21 because of a lack of certain parts required to produce vehicles. Toyota will be temporarily closing assembly plants located in the United Kingdom, France and Turkey, as well as engine and component manufacturing facilities in the U.K. and Poland.

Ford, meanwhile, says that its assembly plant in the Philippines will be closed for 18 days over parts supply interruptions. The Michigan automaker builds most of the vehicles it sells in Southeast Asia (aside from China) in the Philippines, including the Escape (pictured), Focus and Ranger pickup.

Ford also builds vehicles for Mazda at the plant, although it is unclear whether Mazda production will also be affected.

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Nissan, Infiniti contemplating engine exportation from U.S. to Japan

Wednesday, Mar 23rd, 2011 @ 5:21 p.m.

Although Nissan CEO Carlos Ghosn recently affirmed that the Japanese automaker has no intention to shift vehicle production out of Japan in the wake of the earthquake and tsunami, the automaker may be looking to produce some aspects of its vehicles in outside markets instead.

It may seem at first glance to be a near technicality to suggest Nissan has no intention to shift vehicle production out of Japan, and then to immediately suggest that the automaker might shift engine production to the U.S., and then import said engines back to Japan – but there is a clear distinction between the two avenues.

In the age of a truly global economy, it is not uncommon at all for many parts used in production in one country to be sourced from another country entirely, but when it comes time for some consumers to pick a car, the only production location that seems to matter is the final assembly point for the vehicle itself. For Nissan, only one major plant is expected to remain offline for some time, with potential for long-term downtime given its reliance on a nuclear powerplant that is currently on the verge of meltdown.

“It will take some time at Iwaki to recover,” said Ghosn to Bloomberg.

Because of those circumstances, Nissan is said to be considering production of engines for some of its luxury Infiniti models, among other vehicles, at its engine plant located in Tennessee. Nissan would then export the engines from the U.S. to Japan, where the vehicles would then be assembled and eventually shipped off to their destination markets, including back to the U.S.

Although Nissan has not yet made a final decision on the matter, it would seem almost impossible not to move forward with the plan, especially if the situation regarding the nuclear powerplant does not improve, soon.

References
1.’Nissan chief Ghosn…’ view

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