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Halts On Japanese Auto Output Are Extended

March 16, 2011
3 min to read


TOKYO - Toyota Motor Corp. and other major Japanese auto makers extended some halts on domestic assembly into next week, but other auto factories began starting back up after last week's earthquake.


The global auto industry is monitoring what is happening in Japan since any major disruption in part shipments can shut down plants elsewhere.


Toyota said all vehicle assembly in Japan will remain suspended until Tuesday as it works to get parts and while some employees remain unable to get to work, reported The Wall Street Journal.


But in a sign that operations might soon return to normal, Toyota said it would resume production Thursday at seven Japanese plants to supply domestic markets with replacement parts. On Monday, the plants will start production to supply Toyota's overseas markets with parts. The world's largest auto maker by sales has 12 factories in Japan.


Most of Japan's auto makers halted domestic production after Friday's earthquake and tsunami as they grappled with supply shortages, damaged facilities and power outages. Uncertainty about the ability to get supplies and continued disruptions from the disaster still are delaying some manufacturers from resuming full production.


Suzuki Motor Corp. said it will continue to suspend production until Monday. Honda Motor Co., Mazda Motor Corp. and Isuzu Motors Ltd. said their domestic plants will remain closed through at least Sunday.


Nissan Motor Co., however, said it will resume production Thursday and Friday at two of its Japanese auto-assembly plants by using remaining parts. Continued operation will depend on the ability to get additional parts, Nissan said.


Operations at three other Nissan vehicle-assembly plants in Japan, including a damaged plant located in Tochigi close to the quake-struck area, will be halted until Sunday. The car maker said it expects to take longer for its Iwaki engine plant in Fukushima Prefecture, which continued to feel earthquake aftershocks, to restore operations.


The company's facilities in the Americas were expected to continue operating.


Mitsubishi Motors Corp. resumed domestic production Wednesday and planned to operate its three plants Thursday. Production after Friday will depend on its ability to procure sufficient parts.


Bridgestone Corp.'s Tokyo factory resumed production Tuesday. But a fire Wednesday at the tire maker's plant in Nasu in northern Japan threatened to delay the factory's restart. The fire, the cause of which hadn't been determined, was extinguished in less than an hour. The plant, as well as factories in Tochigi and Kuroiso, had been expected to open by Wednesday night.


The factories produce a variety of car, truck, bus and motorcycle tires and shipments were expected to begin Friday. Production of bus and truck tires were a priority because they will be in large demand in the devastated areas.


The auto industry operates on a just-in-time delivery basis, with parts arriving at plants just hours before they are needed on the production line. The approach leaves auto makers vulnerable to disruptions in parts delivery.


Toyota dealerships in the U.S. have expressed concerns about the supply of Prius hybrids, which are made in Japan. The recent surge in gasoline prices has driven demand for the car in the U.S., and some dealers were running out of stock.


The Automotive Components Manufacturers Association of India said that India's auto-parts makers usually stock critical components for two to four weeks' requirements and that the industry body was hopeful of supply normalizing before that.

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