DISASTER IN JAPAN

Honda to shuffle North American production schedules

Laurén Abdel-Razzaq
Automotive News | May 3, 2011 – 6:13 pm EST

DETROIT — Honda Motor Co. said it will readjust production schedules at its North American assembly, transmission and engine plants for two days each week from May 9 through July 1.

The automaker will run the same number of hours and produce the same number of vehicles as it has since late March, said Honda spokesman Ed Miller.

Honda cut daily output at its North American factories March 30 in response to parts shortages caused by the March 11 earthquake and tsunami in Japan. Starting May 9, Honda will shut its plants in the United States, Canada and Mexico on Mondays and Fridays. The automaker will run full production on Tuesdays and Wednesdays. Thursdays could have up to eight hours of output.

“It’s the same situation,” Miller said. “It’s just that we’re more efficient this way.”

Before the original output cuts, Honda was running two shifts at all its plants, except for its Greensburg, Ind., plant, which was operating one shift, Miller said.

Workers can opt to stay home on the off days without penalty or come in for training and nonproduction activities. Previously scheduled holidays for Memorial Day in the United States and Victoria Day in Canada are included in the downtime.

On Monday, Honda announced it would suspend June and July dealer orders for vehicles built in Japan. The decision will affect the Fit, Insight, CR-Z, Civic Hybrid, Acura TSX and Acura RL. Also affected are a small number of CR-Vs.

It also delayed the release of its 2012 CR-V sport-utility vehicle by a month and restricted orders because of paint shortages so dealers cannot modify allocated colors and trim levels for U.S.-built vehicles. Dealer allocations of the redesigned Civic, which went on sale in late April, will be limited during summer.

japan-auto-industry

Today, Honda reported a 10 percent increase in Honda brand sales in the United States and an 8 percent increase in Acura brand sales in the United States from the same month a year ago. Overall the automaker’s U.S. light-vehicle sales rose 10 percent in April from a year ago.

In 2010, Honda built 87 percent of its U.S.-sold units in the United States, Miller said. The Fit is the only U.S.-sold vehicle imported in large numbers from Japan. Last week, Honda said it expects Japanese production to return to normal levels before year end.

In Japan, Honda’s output will continue at 50 percent capacity through June, the automaker said last week.

Honda resumed vehicle output April 11 at half capacity at its Sayama and Suzuka plants. The Sayama site builds the Honda CR-V, Accord and Fit, as well as the Acura RL and TSX. The Suzuka plant assembles the Honda Fit, Civic, Civic Hybrid, Insight and CR-Z.

Honda previously announced some production cuts at factories in the United Kingdom and India.

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Entire contents ©2011 Crain Communications, Inc.

Manufacturing disruption resulting from the earthquake in Japan

Chrysler Group LLC
UPDATED: 9:59 a.m. ET, 4/8/11
North America:
•Restricted dealers from ordering vehicles in 10 paint colors (brilliant black, blackberry, deep cherry red, redline, inferno red, bronze star, rugged brown, hunter green, ivory and billet metallic) produced at factory in Japan.
•Restricted overtime indefinitely at Brampton, Ontario plant in Canada (Chrysler 300, Dodge Charger, Challenger) and Toluca, Mexico plant (Dodge Journey, Fiat 500, Fiat Freemont for export)
Ford Motor Co.
UPDATED: 10:19 a.m. ET, 4/28/11
U.S.:
•Reopened Kentucky Truck (Louisville, Ky.) plant on April 11; plant was down week of April 4 due to parts shortages; builds F-series Super Duty (F-250-F-550), Expedition, Lincoln Navigator
• Has found replacement paint for “tuxedo black” and three red paint shades that had been in short supply since earthquake. Ordering for those colors can resume for June and July; affected F-150 and Super Duty pickups, Explorer, Expedition, Focus, Taurus, Lincoln MKS and Navigator
•Expects shortages of six other metallic colors in the next few weeks and months including: Bordeaux reserve, lava red, Kona blue, sangria red, earth and bright magenta; Ford will replace with similar shades 

Europe:
•Resumed production at Genk, Belgium plant (S-MAX, Galaxy and Mondeo) on April 12; had been closed since April 4

South Africa
•Silverton Assembly Plant in Silverton, Pretoria (Focus, Bantam, Ranger and Mazda BT-50) suspended production for week of April 25; pulled ahead previously scheduled downtime as precautionary move

Asia:
•Ford Motor Company Philippines, Inc. plant (Escape, Focus, Mazda 3) closed for 18 days starting April 11; regularly scheduled week of downtime included in closure, as well as holidays
•Suspended production at Ford Lio Ho plant in Taiwan (Focus, Mondeo, Escape, Econovan, Mazda 3 and Mazda 5) for week of April 25 and week of May 2 due to vehicle kit shortages; pulled ahead future scheduled downtime
•Suspended production at Changan Ford Mazda Automobile plant in Nanjing in China (Fiesta, Mazda 2 four-door, and the Mazda 3) for week of April 25; pulled ahead previously scheduled downtime as precautionary measure

Fuji Heavy Industries (Subaru)
UPDATED: 11:48 a.m. ET, 4/25/11
U.S.:
•April 26 – May 26: Lafayette, Ind. plant will resume full eight-hour shifts of production for Legacy, Outback and Tribeca; previously had non-production days April 15, 18, 25
• Lafayette, Ind. plant ran full 8-hour shifts for Subaru production between April 11-14; operated half shifts April 4,8
•Toyota Camry production at Lafayette plant will follow Toyota’s production schedule; between April 26 – June 3, Camry line running non-production days every Monday and Friday; running half shifts every Tuesday, Wednesday and Thursday
•Camry output suspended week of May 30 along with rest of Toyota U.S. production 

Japan:
• Gunma plant resumed assembly April 6 at half the normal rate; affects Subaru Forester, Impreza and Legacy.
•Restarted limited mini-vehicle production March 31

General Motors
UPDATED: 1:05 p.m. ET, 4/21/11
U.S.:
•Said April 21 it is increasingly confident that the overall situation in Japan will not have a material impact on full-year results
•Resumed Chevrolet Colorado and GMC Canyon production at Shreveport, La. plant; shortage of undisclosed parts from Japan had halted production week of March 21
•59 laid off workers at Tonawanda, N.Y. plant back to work March 28; plant makes engines for Shreveport
• All nonessential spending and global travel temporarily halted 

Europe:
• Opel’s Eisenach, Germany plant (Corsa) was down two shifts March 21 and Zaragoza, Spain plant (Corsa) canceled one shift March 21 and one shift March 25; no other cancelations as of March 29

Asia:
• Overtime cut at two South Korean factories for week of March 21

Honda Motor Co.
UPDATED: 9:36 a.m. ET, 5/3/11
North America.:
•Adjusting output schedules in U.S., Mexico and Canada for May 9 – July 1; previously ran daily production cuts of up to 30 percent normal output at U.S., Canadian factories
•Will cancel production Mondays and Fridays at North American assembly, transmission and engine plants; Will run full output on Tuesdays and Wednesdays and additional output on Thursdays; expects vehicle production to be at the same rate as it has been running since March 30
•Release of the 2012 CR-V is likely to be at least a month later than planned; to prevent a production gap it will extend output of the 2011 CR-V.
•Production of the redesigned Civic that went on sale in late April will be limited for a few months
•Extended limits on U.S. dealer orders of Japan-built autos; affected models include Fit, Insight, CR-Z, Civic Hybrid, Acura TSX and Acura RL. Also affected are a small number of CR-Vs
•Told dealers it will fill March and April orders for Japan-built vehicles with May and June production but supply after that will be restricted.
•Restricted dealer allocations for certain vehicle colors due to paint pigment shortages. 

Europe:
•Cut production at its UK factory by 50 percent for seven weeks; applies to four days per week starting April 11

India:
•Will halve production at plant near New Delhi from May due to parts shortages; makes the Jazz hatchback and City sedan

Japan:
•Said April 25 that production won’t return to normal levels until year-end; domestic output until the end of June will be at 50 percent
•March domestic output down 62.9 percent from previous year
• Resumed half capacity vehicle production at Sayama plant (CR-V, Accord, Fit, Acura RL and TSX) and Suzuka plant (Fit, Civic, Civic hybrid, Insight and CR-Z) April 11
•Resumed production of parts and replacement parts for shipment overseas at half capacity April 4
•Resumed motorcycle and power product production at Kumamoto Factory March 28
• Expects product development to be delayed at least two weeks; transferred some employees from damaged tech center in Utsunomiya to other sites; expects several months to reopen center

Mazda Motor Corp.
UPDATED: 9:53 a.m. ET, 4/25/11
U.S.:
•Suspended dealer orders for vehicles made in Japan until further notice; will affect (Mazda2, Mazda3, MX-5, Miata, RX-8, CX-7, CX-9, Mazda5) May allocation for U.S. dealers 

Japan:

•Compared to last year, March domestic output down 53.6 percent; exports fell 36 percent; domestic sales down 34.9 percent; overseas output rose 14.5 percent, according to Nikkei
•Resumed limited vehicle production at Hiroshima plant (Bongo, CX-7, CX-9, Demio, Premacy, Roadster, RX-8, Verisa) and Hofu plant (Atenza, Axela) April 4
•Has identified thousands of auto parts at risk of shortage and is working to either obtain them from alternative suppliers or change their specifications.
•No date yet for full production

Mitsubishi Motors Corp.
UPDATED: 10:29 a.m. ET, 5/4/11
U.S.:
•Global president warned Normal, Ill. assembly plant could be shut down 7-10 days due to parts shortages; plant is currently running 

Japan:
•Plants will return to full production May 9; were down for Golden Week holiday April 29 – May 6
•Resumed full production from April 18 at Okazaki, Mizushima and Pajero; forecasting a production volume for April to reach about 60% of original planned volume
•Compared to last year, March global production down 10.9 percent; domestic production volume down 25.7 percent; vehicle sales in Japan fell 31.4 percent; overseas production output up 7.9 percent; exports from Japan down 0.8 percent

Nissan Motor Co.
UPDATED: 11:54 a.m. ET, 5/4/11
U.S.:
•Smyrna, Tenn. plant (Altima, Maxima, Frontier, Xterra, Pathfinder), Decherd, Tenn. (engines), and Canton, Miss. (Altima, Armada, Titan, NV commercial van) plants were down April 8, 11 and April 18-21; will make up output in Q2, Q3
•First shipment of post earthquake-produced Leafs arrived in U.S. on April 27
•About 2,300 Infiniti and Nissan vehicles were damaged in port in Japan en route to the U.S.
•Will restrict orders for some new cars including a limit on red, blue and gray colors because of pigment shortages.
•Informed dealers that it will restrict their ability to change vehicle orders after they have been submitted to the factory
•Murano CrossCabriolet Convertible now scheduled to arrive as late as June instead of this month
•Orders have been frozen for an estimated 10,000 employee and corporate vehicles 

Mexico.:
• Cuernavaca, Mexico plant (Versa for U.S., Tsuru, Tiide, Frontier) was down April 4-8
• Aguascalientes, Mexico plant (Sentra, Versa for U.S., March, Tiide) was down April 11-15

Japan:
•Production is back up to about half normal output; forecasting a return to near full production speed by early June
•Resumed normal operations based on delivery of parts from suppliers at all manufacturing facilities week of April 25; started receiving delivery of parts on April 11
•Changing its factory production mix to shift more of its limited resources to its best-selling vehicles; Rogue, Juke and all Infiniti models are shipped from Japan to U.S.
•March domestic output down 52.4 percent from last year
•Expects April volume to be 40 percent of April 2010’s total; will try to recover lost output by operating at higher levels than planned in May
•May and June production will depend on delivery of parts
•Oppama plant resumed operations April 11
•Tochigi plant vehicle assembly resumed operations from April 18; had previously restarted powertrain production
•Kyushu plant resumed operations from April 13
•Nissan Shatai plant resumed operations April 11
•Nissan Shatai Kyushu plant resumed operations from April 13
•Yokohama plant (powertrain) will continue to operate
•Iwaki plant (powertrain) resumed operations April 18 (VQ V-6 engine for Infiniti G and M series, Murano, Z350)
•All plants will operate at half capacity through the end of April
•May not resume full production for 30 to 90 days after Japan’s Golden Week holiday, ending May 9, sources say
•Resumed parts production for overseas and repair parts April 4
•Leaf vehicle and battery production resumed at Oppama assembly and Zama battery plants March 24; plants still face rolling blackouts

PSA Peugeot-Citroën
UPDATED: 10:47 a.m. ET, 4/1/11
Europe:
•Resumed normal production March 31; had reduced production at most European plants from March 23 due to shortage of engine airflow sensor imported from Japan; affects Peugeot 207, Citroën C3, according to Dow Jones report
•Had cut production 40 – 50 percent at plants in Madrid and Vigo, Spain; Poissy and Aulnay, France; and Trnava, Slovakia
•Had also cut production 75 percent at Sochaux, Sevelnord and Mulhouse, France
•Plants in China, Latin American not affected
Renault SA.
UPDATED: 10:20 a.m. ET, 3/31/11
South Korea:
•Renault Samsung Motors Co. expected to cut output 20 percent during April because of supply shortages, according to South Korean media reports
•Stopped weekday overtime as well as weekend shifts from March 22
Suzuki Motor Corp.
UPDATED: 10:02 a.m. ET, 4/11/11
Japan:
• Automobile assembly at Kosai, Iwata and Sagara plants running day shift only after April 11, while parts last
•Motorcycle assembly at Toyokawa, Takatsuka running from April 4
Toyota Motor Corp.
UPDATED: 10:42 a.m. ET, 5/4/11
North America:
•Assembly plants, most engine and component plants were suspended April 15, 18, 21, 25 (also off April 22 for previously scheduled holiday); Georgetown, Ky. plant built vehicles on April 21
•Between April 26-June 3 all North American plants will not run production on Mondays and Fridays; will run at half production on Tuesdays, Wednesdays and Thursdays; not laying off any workers
•U.S. production will be suspended week of May 30; previously had Memorial Day holiday scheduled for non-production
•Canadian production will be suspended week of May 23; previously had Victoria Day holiday scheduled for non-production
•Production after June 3 undetermined
• U.S. factory output at 30 percent rate; expected to start picking up in August
• Could delay U.S. launch of Scion iQ small car this summer
• Informed dealers March 23 that Toyota Motor Sales will not fill any orders of short-inventory parts to replenish dealer stock
• Prius availability in the U.S. could be affected by damage to a hybrid battery plant; RAV4 crossover also affected 

Europe:
•The following plants reopened May 3: Burnaston, England (Avensis, Auris); Adapazari, Turkey (Verso, Auris); Valenciennes, France (Yaris); Deeside, Wales (engines)
•Plant in Jelcz-Laskowice, Poland (engines) reopened May 4
•These European plants were closed April 21, 22(holiday), 25-29, May 2
•Factories will also run at a reduced volume during the month of May to manage available parts supply; not expected to pick up until August
•Canceled planned overtime at car assembly and engine plants in UK as of April 7

China:
•Said April 20 its factories will run at 50 percent of capacity and in “extreme circumstances” at 30 percent through June 5; not expected to pick up until August

Thailand:
•Will cut production from April 25-June 4 due to supply disruptions

Japan:
•Said April 22 that it will take at least until November for production to return to normal at both its domestic and overseas assembly plants; factory suspensions have bottomed out and output will start rebounding this summer.
• Japanese factory output at 50 percent rate; expected to start picking up in July
•Reopened remaining production plants at half capacity April 18 and will continue manufacturing through April 27; will suspend output for holiday from April 28- May 9 (three days longer than planned); will resume half capacity production May 10 through June 3
•May not resume full production for 30 to 90 days after Japan’s Golden Week holiday, ending May 9, sources say
•Total domestic March output was down 62.7 percent; global output down 29.9 percent, putting Toyota at risk of dropping to no. 3 global automaker behind GM and Volkswagen
•Resumed production at Sagamihara plant (Corolla, Raum for Japan) April 11; Delayed shift of Corolla production from Sagamihara plant to Miyagi plant until May while Miyagi is still damaged
•Resumed production of Toyota Prius, Lexus HS250h and CT 200h hybrids at half capacity March 28
•Miyagi assembly plant (Yaris for U.S. export) to be offline until at least late April; natural gas supply interrupted
• Resumed production of replacement parts for vehicles already on the market on March 17; resumed production of parts for overseas production on March 21
•Delayed Japanese launch of wagon-style Prius; not expected to affect U.S. or European launch

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