This could prove to be a boomfor U.S./European/South American... you name it manufacturers. If Japan doesn't get these plants up fast, someone will take thier spot soon. Where there is demand, there is opportunity to make money. Plust, this shows a weak spot in auto manufacturing. I would be this does not happen again. There are other car companies other than Honda/Toyota/Mazda don't forget. They too will see opportunity and fill the gaps.. Gotta love competition. Don't get me wrong. I feel for the people of Japan and would not want to wish this catastrophe on anyone.
"Some analysts now are saying a marked impact on automakers’ 2011 earnings is unavoidable, while Deutsche Bank said yesterday the overall Japanese auto industry may have to absorb a 15-percent decline in auto production this year.."
Also of interest, an AutoObserver contributor who has lived in Japan for 20 years talks about life in Tokyo, and reports "What we’ve also learned again, mirroring Toyota’s recall fiasco in the U.S. last year, is that Japan is not too good at crisis management; you know, acting quickly when the chips are really down. Why? Because the system is not there. "
They just had the worst March since the 1960s, and I predict April will be even worse.
When they do start to recover, though, imagine how many cars were destroyed. I saw what seems like hundreds of Suzuki Wagon R models damaged by the Tsunami.
Speaking of global - I was watching some news story on the Libyan uprising. In addition to the typical Hi-Lux revolutionary vehicle of choice, I swear I saw a couple of current model Tundras in the footage.
So an American built, Japanese brand full size truck is finding itself in a middle eastern clash. That's global.
Thank goodness - quake was corrected to a 7.1, the tsunami warning has been canceled and while some nuke plants lost power their emergency power kicked in fine this time.
I cannot imagine what these folks have to be going through.
2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
Yeah, you can go buy a Chevy Colorado. But maybe not; GM suspended production for a week so they could shunt Japanese made parts to the better selling Cruze and Equinox.
It's a global market and the earthquake has disrupted parts supply for most all automakers.
Plus, lots of people prefer Nissans, Hondas and Toyotas.
A co-worker bought a new car this week. White chatting with the dealer reps., he was told that all but one Japanese plant that makes critical auto tranny parts for automakers around the world are destroyed. The Japanese government is forcing the one operational plant, which is apparently owned by one automaker, to share its resources with other automakers' production crews on a rotating weekly schedule so that you average car consumer in the U.S. won't face a day within the next month or three where the dealer lots are completely filled with manual transmission vehicles (if any vehicles at all).
That...smells funny. Sounds like a rumor to me. The dealer reps. did mention that they had a large supply of the manual version of the vehicle he bought.
Used Prii are apparently hot also, commanding a purchase price that are equivalent or more than a new model.
That sounds like a rumor to me. Jatco and Aisin are IIRC the two largest transmission makers in Japan and for both to have lost all their plants (including others around the world) save one is probably just talk.
"Production was disrupted at major manufacturers, notably in the automobile industry.
Toyota Motor Corp. has said that the natural disaster cut its operating profit for the fiscal year by ¥110 billion ($1.35 billion) from the forecast made in February as it had to idle all its domestic factories right after the quake and to repair damaged equipment at some plants.
The supply problems in the world's third-largest economy also hit some of Japan's trade partners. U.S. manufacturing output fell 0.4% on month in April, the first decline in 10 months, as Japan's disaster limited the supply of parts needed to assemble cars in the U.S."
Subaru is planning to take measures to counteract the impact an expected super-low inventory will have this summer:
Tom Doll, Subaru of America COO, said the automaker's inventory could drop to 17,000 units this summer, leaving some dealers without cars to sell. On May 1, Subaru's North American inventory was 32,800 units.
We'll be down to cash-for-clunkers levels by August," Doll said on the sidelines of an industry event here. "We're looking at retail solutions."
Doll would not disclose the nature of the assistance but said Subaru's global headquarters is considering a proposal. If approved, new programs will be unveiled by July.
Subaru's main plant is in Gunma prefecture, north of Tokyo. The company produces the Legacy, Outback and Tribeca in Lafayette, Ind.
Doll said Subaru could see a 20 percent drop in U.S. sales this year after a record 263,820 units sold in 2010. Subaru sold 216,652 units in 2009 and expected to sell 300,000 units this year.
Doll's biggest concern is the brand's newest markets. He said Subaru was able to increase its dealer body by adding former Chrysler Group and General Motors stores in the South. Now, lacking inventory, he wants to keep everyone happy.
.....He said the company is considering ways to help its retail network, including assistance for salespeople and customers.
Subaru already is extending lease terms by three to five months, offering maintenance programs and free accessories such as ski racks.
Kinda stinks for Soob, which had been doing so well when everyone else was falling apart, to get knocked out by the earthquake this way. But I really question the wisdom of them sending 50,000 Camrys down the line this year in Indiana, when they could potentially be sending 50,000 Foresters down the line instead. Yes, they are in contract with Toyota to provide the Camrys, but surely Toyota would allow them to switch it up given it has a financial interest in their success.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Yeah, they gave away a full assembly line. Then again, Tribeca could not fill up the volume, and SIA is only set up to build Legacy/Outback/Tribeca models.
Yeah, they gave away a full assembly line. Then again, Tribeca could not fill up the volume, and SIA is only set up to build Legacy/Outback/Tribeca models.
Ding ding ding. It wouldn't make sense to retool Lafayette for the Forester since the shortage is temporary. And it's probably suppliers having a hard time so there wouldn't be parts to use in Lafayette either.
Sure seems like they should dump the zero-sales Tribeca and build Foresters in Lafayette though, doesn't it? I know there has been some talk of it, but nothing definite yet....
...I figure that one day Impreza will be the last Subaru for NA sales still being built exclusively in Japan.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
"The Japan Automobile Manufacturers Association (JAMA) has recommended that from July 1 to September 30 auto companies switch their working week to include Saturdays and Sundays and then have Thursdays and Fridays off. Electricity use is generally higher during the week than weekend, goes the theory, so with luck that’ll sidestep the power cuts. So far, Toyota, Mitsubishi and Mazda have confirmed the switch but others are bound to follow and that goes for headquarters and R&D staff and suppliers too. Privately, few seem overjoyed at the prospect of working weekends but will go along with it no doubt in the long held spirit of shoganai (can’t be helped)."
On top of this, Japan's Dept of Energy has recommended that worker forgo suits and ties this summer with the expected issues with power and air conditioning. Called Super Cool Biz, many people in the more "formal" agencies and businesses seem all flustered by the idea of chinos and polo shirts.
Todo list for Japan's power system: 1) Build coal-powered plants. 2) Integrate power systems in the north & south of the country so power can be transmitted efficiently to the places that need it (this depends on whether millions are willing to buy new products & equipment to accommodate a change. If they can't do it quickly, then they'll have to stretch out the integration over a length of time [10 years?]).
Global Japanese car industry: 1) Source and build more parts where they sell the vehicles.
Although my last two vehicles were from Japanese subsidiaries, one of the important variables I use to make a car purchase is product support. I'm starting to save toward a down payment to a new car. If continuing problems in Japan hamper their ability to make vehicles a year from now, I'll have to review what the domestics, Koreans, and Germans have to offer.
I would take a good hard look at the South Koreans and Hyundai/Kia. You may be surprised at just how good they are. I have tasted two new Kia's and would buy another in a New York minute.
They are cashing in on the misfortunes of the Japanese makes. Kia's sales were up more than 50% last month, and the funny thing is they had a GOOD year in 2010, so that says a lot!
unprecedented teamwork among erstwhile rivals helped everyone.
For example, automakers collaborated to forestall a much-feared summer energy crunch that could hammer production just as it ramps up. To lessen the load on the local power grid -- but keep plants running -- the industry agreed as a group to work on weekends and take off Thursdays and Fridays.
And don't downplay nearly unthinkable cooperation among competitors. Look no further than Iwaki Diecast Co., which makes aluminum engine parts. Because its plant was offline, Iwaki Diecast handed its blueprints to an unscathed rival who plugged the supply chain gap. Japan's Nikkei business daily chronicled several such sacrifices that sped everyone's recovery.
Finally, it was probably naïve to believe the gloomy initial forecasts.
Japanese executives are archconservative by nature. They consistently underpromise and overdeliver. It's a way of business here.
....Toyota's plants in Japan are operating at 90 percent of pre-quake levels. And even Honda, among the worst hit, aims to have its domestic production back to normal by August
I read in a separate article that despite the quake, Suzuki still has the second highest days supply of any automaker - 80 days' supply in the U.S. Closely followed by Mazda at 76 days, apparently. Only Saab is worse, at 246 days (!!).
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Comments
Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20110401/OEM01/110409991/1329- #ixzz1IItx1I2B
Don't get me wrong. I feel for the people of Japan and would not want to wish this catastrophe on anyone.
Japan Auto Production Adapts To Disaster Reality
Also of interest, an AutoObserver contributor who has lived in Japan for 20 years talks about life in Tokyo, and reports "What we’ve also learned again, mirroring Toyota’s recall fiasco in the U.S. last year, is that Japan is not too good at crisis management; you know, acting quickly when the chips are really down. Why? Because the system is not there. "
Japan Post Quake: A Letter from Tokyo
When they do start to recover, though, imagine how many cars were destroyed. I saw what seems like hundreds of Suzuki Wagon R models damaged by the Tsunami.
Edit to add link:
http://www.autoblog.com/2011/04/05/japans-new-cars-sales-reportedly-plummet-to-l- owest-since-1968/
http://www.autoblog.com/2011/04/02/report-ford-idles-first-plant-due-to-japan-fa- llout/
Go figure!
So an American built, Japanese brand full size truck is finding itself in a middle eastern clash. That's global.
I cannot imagine what these folks have to be going through.
Honda's latest:
ALERT: Honda's Mendel says parts shortages could hamper U.S. plants for up to 3 months
Automotive News
It's a global market and the earthquake has disrupted parts supply for most all automakers.
Plus, lots of people prefer Nissans, Hondas and Toyotas.
Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20110408/OEM01/110409889/1117- #ixzz1IxnQvTPy
http://www.autoblog.com/2011/04/13/psa-japan-automakers-have-lost-half-a-million- -units-since-quake/
"Do the math," Mr. Jackson said at the meeting. "We are going to be out of certain models at some point."
Quake Throws AutoNation Into a Spin (Wall St Journal)
That...smells funny. Sounds like a rumor to me. The dealer reps. did mention that they had a large supply of the manual version of the vehicle he bought.
Used Prii are apparently hot also, commanding a purchase price that are equivalent or more than a new model.
If you want their free-oil-change coupon book, you actually pay above MSRP for a Prius!
Toyota Motor Corp. has said that the natural disaster cut its operating profit for the fiscal year by ¥110 billion ($1.35 billion) from the forecast made in February as it had to idle all its domestic factories right after the quake and to repair damaged equipment at some plants.
The supply problems in the world's third-largest economy also hit some of Japan's trade partners. U.S. manufacturing output fell 0.4% on month in April, the first decline in 10 months, as Japan's disaster limited the supply of parts needed to assemble cars in the U.S."
Japan Slides Into Recession (WSJ).
I'm surprised Toyota profited at all.
Toyota, the world's biggest carmaker, said its domestic production fell 74.5% compared with the same month last year.
Honda's Japanese output plummeted 81%, while Nissan reported a 48.7% decline at its factories in Japan."
Japan's car production plunges due to parts shortages (BBC)
Tom Doll, Subaru of America COO, said the automaker's inventory could drop to 17,000 units this summer, leaving some dealers without cars to sell. On May 1, Subaru's North American inventory was 32,800 units.
We'll be down to cash-for-clunkers levels by August," Doll said on the sidelines of an industry event here. "We're looking at retail solutions."
Doll would not disclose the nature of the assistance but said Subaru's global headquarters is considering a proposal. If approved, new programs will be unveiled by July.
Subaru's main plant is in Gunma prefecture, north of Tokyo. The company produces the Legacy, Outback and Tribeca in Lafayette, Ind.
Doll said Subaru could see a 20 percent drop in U.S. sales this year after a record 263,820 units sold in 2010. Subaru sold 216,652 units in 2009 and expected to sell 300,000 units this year.
Doll's biggest concern is the brand's newest markets. He said Subaru was able to increase its dealer body by adding former Chrysler Group and General Motors stores in the South. Now, lacking inventory, he wants to keep everyone happy.
.....He said the company is considering ways to help its retail network, including assistance for salespeople and customers.
Subaru already is extending lease terms by three to five months, offering maintenance programs and free accessories such as ski racks.
http://www.autonews.com/apps/pbcs.dll/article?AID=/20110530/RETAIL07/305309972/1- 422
Kinda stinks for Soob, which had been doing so well when everyone else was falling apart, to get knocked out by the earthquake this way. But I really question the wisdom of them sending 50,000 Camrys down the line this year in Indiana, when they could potentially be sending 50,000 Foresters down the line instead. Yes, they are in contract with Toyota to provide the Camrys, but surely Toyota would allow them to switch it up given it has a financial interest in their success.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Ding ding ding. It wouldn't make sense to retool Lafayette for the Forester since the shortage is temporary. And it's probably suppliers having a hard time so there wouldn't be parts to use in Lafayette either.
They have a new Impreza coming and simply won't have enough cars to sell.
...I figure that one day Impreza will be the last Subaru for NA sales still being built exclusively in Japan.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
The Heat Is On In Japan (AutoObserver)
Todo list for Japan's power system:
1) Build coal-powered plants.
2) Integrate power systems in the north & south of the country so power can be transmitted efficiently to the places that need it (this depends on whether millions are willing to buy new products & equipment to accommodate a change. If they can't do it quickly, then they'll have to stretch out the integration over a length of time [10 years?]).
Global Japanese car industry:
1) Source and build more parts where they sell the vehicles.
Although my last two vehicles were from Japanese subsidiaries, one of the important variables I use to make a car purchase is product support. I'm starting to save toward a down payment to a new car. If continuing problems in Japan hamper their ability to make vehicles a year from now, I'll have to review what the domestics, Koreans, and Germans have to offer.
2021 Kia Soul LX 6-speed stick
Lighting.
unprecedented teamwork among erstwhile rivals helped everyone.
For example, automakers collaborated to forestall a much-feared summer energy crunch that could hammer production just as it ramps up. To lessen the load on the local power grid -- but keep plants running -- the industry agreed as a group to work on weekends and take off Thursdays and Fridays.
And don't downplay nearly unthinkable cooperation among competitors. Look no further than Iwaki Diecast Co., which makes aluminum engine parts. Because its plant was offline, Iwaki Diecast handed its blueprints to an unscathed rival who plugged the supply chain gap. Japan's Nikkei business daily chronicled several such sacrifices that sped everyone's recovery.
Finally, it was probably naïve to believe the gloomy initial forecasts.
Japanese executives are archconservative by nature. They consistently underpromise and overdeliver. It's a way of business here.
....Toyota's plants in Japan are operating at 90 percent of pre-quake levels. And even Honda, among the worst hit, aims to have its domestic production back to normal by August
http://www.autonews.com/apps/pbcs.dll/article?AID=/20110613/OEM01/306139870/1424-
I read in a separate article that despite the quake, Suzuki still has the second highest days supply of any automaker - 80 days' supply in the U.S. Closely followed by Mazda at 76 days, apparently. Only Saab is worse, at 246 days (!!).
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)