Japan quake still rippling

LIKE the nuclear radiation catastrophe that followed the lethal offshore earthquake and subsequent tsunami that devastated north-east Japan on March 11, production of vehicles by Japan’s seven major car-makers continues to remain in a state of flux.

Apart from supply shortages of imported Japanese cars – and a subsequent increase in average transaction prices – that could hit Australia in two to three months, the lack of vital electronic components from other affected automotive parts suppliers in Japan continues to be of major concern to Australia’s three car-makers.

At this stage GM Holden, Ford and Toyota production remains unaffected in Australia, but all three local manufacturers continue to closely monitor the supply of Japanese-made parts for both their factories and their local suppliers.

Similar problems face factories that make Japanese vehicles in other countries, with some North American car-makers expected to grind to a halt within days due to lack of supply from Japanese parts-makers who now face power shortages after several of the nation’s electricity plants were knocked out in the most violent earthquake ever recorded in Japan.

Toyota Motor Corporation recommenced production of its Prius and Lexus CT200h hybrid models on Monday (March 28) – the same day the first Lexus hatchback was launched in Australia – but production at the company’s other Japanese plants that make volume-selling cars like the Yaris, Corolla and LandCruiser remains on hold.

However, Toyota Australia says it has sufficient stocks of all imported models to maintain supply for weeks, and that production of the Camry and Camry Hybrid is continuing at Altona.

From top: Lexus CT200h, Toyota Camry hybrid, Honda Civic hybrid, Mazda3.



“We’re fine at the moment. At this stage there is no impact on production at Altona, which continues to use existing pipeline (parts) supplies,” Toyota Australia spokesperson Laura Hill told GoAuto.

Toyota has confirmed affected Japanese-made parts are involved in local production of the Camry and Aurion, but is yet to ascertain which parts will be delayed or for how long.

“At this stage we’re unable to provide specific details,” Ms Hill said. “We are trying to get information out of Japan and will share that with you as soon as we know. Some of those suppliers are in the heaviest hit areas of Japan.”

Both of Mazda’s Japanese plants had been undertaking partial production using “in-process inventory” until Monday, but that has now ceased. Mazda Australia says it is currently awaiting further information on when full-scale production will restart.

Mazda’s Hofu plant, which produces Australia’s top-selling Mazda3 small car and mid-sized Mazda6, resumed production with in-stock parts on March 22, while the company’s Hiroshima factory has also exhausted supplies of parts to produce the Mazda2, MX-5, RX-8, CX-7 and CX-9.

US Mazda dealers have been prevented from ordering a number of Japanese-built models, affecting deliveries in May.

The five Japanese plants that produce Nissan’s Leaf, 350Z, GT-R and almost all Infiniti models – Oppama, Tochigi, Kyushu, Yokohama and Nissan Shatai – reopened on March 24 using in-stock parts supplies but continue to face rolling blackouts, while the damaged Iwata plant that produces V6 engines remains idle.

Honda, Japan’s second-largest auto-maker, said its major car plants at Suzuka and Sayama will remain stalled until at least April 4, when a decision will be made on future production, but motorcycle and power equipment production at Kumamato also resumed on Monday.

Honda Australia says it continues to hold good stocks of its Japanese-built models such as the Civic Hybrid, Accord Euro, Odyssey and Legend, but its parent company has revealed it expects product development to be delayed by at least two weeks after it was forced to transfer some of the 1000 employees – representing 10 per cent of its workforce – from its main Tochigi engineering centre, which may not be fully operational for months, to other sites.

At least one Honda employee was killed, and 17 injured, by the magnitude nine quake almost three weeks ago.

Although Honda Australia sources most of its vehicles from Thailand, Sayama produces CR-V, Accord, Jazz, Acura RL and TSX models, while Suzuka makes the Jazz, Civic, Civic Hybrid, Insight and CR-Z.

Meantime, Subaru’s parent company Fuji Heavy Industries has extended its production suspension to this Thursday (March 31), when it will recommence limited mini-car production, but continues to face rolling blackouts and supply shortages.

Like all Japanese car-makers, Mitsubishi is re-evaluating its domestic operations every two days, with the next assessment due on Thursday (March 31). Production at Mitsubishi’s Okazaki (which makes the Colt), Mizushima (i-MiEV, Lancer, Outlander and others) and Pajero plants (Challenger, Delica, Pajero) remains sporadic this week.

Lastly, after recommencing limited production on March 22 and 23, Suzuki’s three Japanese plants remain closed until at least Wednesday (March 30), although some commercial vehicles and engines continue to be made with parts in stock. If that situation does not change soon, Suzuki Australia will face supply problems with all models except the Indian-sourced Alto within three months.

Of course, the dire situation in Japan also affects supplies of vehicles and parts to other markets, including the world’s largest in China and North America. In Suzuki’s case, factory closures are already reported to have led to tight US supplies of the Kizashi, SX4 and Grand Vitara.

Internationally, according to Automotive News, a total of 16 Toyota plants remained idle at the start of this week, including the Central Motor plant in Miyagi that manufactures the Yaris, while the Japanese launch of a new wagon derivative of the Prius has been delayed.

Also outside Japan, while General Motors temporarily halted Chevrolet Colorado and GMC Canyon production at its Shreveport plant and suspended all non-essential spending and travel, Ford will idle its Genk plant in Belgium, which produces the S-Max, Galaxy and Mondeo from five days on April 4 to conserve parts.

Automotive News reports that US. Honda dealers have been prevented from ordering a number of models while US Honda production is likely to be halted from April 1 due to lack of parts. Similarly, US Ford and Chrysler dealers are unable to order vehicles in a number of paint colours, which are produced in Japan.

Some experts have forecast lost production of up to 600,000 vehicles globally by the end of March, with Toyota’s output so far reduced by 140,000, Honda’s by 46,600, Mazda’s by 31,000 and Mitsubishi’s by 15,000.