How GM avoided its own disaster after Japanese quake

Filed under: Etc., Japan, Plants/Manufacturing, GM

GM Ren Cen

While Toyota has been one of the automakers hardest hit by the tragic Japanese earthquake, tsunami and nuclear disasters in March of this year, nearly every auto company on the planet felt its impact. Thanks to a global, tight-laced network of interconnected suppliers, manufacturers were left scrambling to make up gaps in the parts chain when Japan’s manufacturing mechanism ground to a halt. As it turns out, General Motors took on the challenge of making sure as many of its plants stayed operational as possible by employing a team of hundreds of employees that worked around the clock.

Officially termed “Project J,” the workers came up with creative solutions to manage the supply interruptions. As a result, GM says that its bottom line for 2011 won’t be significantly impacted by the Japanese earthquake.

In some cases, that meant shifting parts from low-volume plants like the Shreveport, Louisiana facility responsible for the Chevrolet Colorado and the GMC Canyon to other facilities. GM stressed that it didn’t want to simply walk away from its old suppliers in their darkest days, so the automaker sent a team to Japan to learn how it could help get key factories back up and running. That included sourcing hydrogen peroxide and steel from Korea from two different companies.

The whole effort is incredibly impressive and worth a read if you’ve got the time. Check it out over at The New York Times.

How GM avoided its own disaster after Japanese quake originally appeared on Autoblog on Fri, 13 May 2011 18:58:00 EST. Please see our terms for use of feeds.

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Ford to idle first plant as a result of Japan disaster

Filed under: Truck, Plants/Manufacturing, Ford

ford super duty

2011 Ford F-450 Lariat – Click above for high-res image gallery

Ford hasn’t said much about its supply situation in the wake of the earthquake in Japan, but now the automaker has no choice but to spill the beans. The Detroit News reports that Ford will shut down its Louisville, Kentucky plant next week due to a parts shortage. The facility produces the Ford Expedition, Ford Super Duty trucks, and the Lincoln Navigator. Ford sales analyst George Pipas did not identify the part that was in short supply, though he did add that high gas prices have helped slow sales of these vehicles anyway.

Ford will also shut down its Flat Rock, Michigan plant, where the Mustang is produced, because the automaker already has a 116-day supply of the pony car. In Europe, Ford will idle the Genk, Belgium plant that produces the Mondeo, S Max and Galaxy minivan to help prevent future shortages.

Ford announced that events in Japan could further affect future production, but at this point it isn’t interested in divulging the extent of its supply issues. Ford is actively searching for other parts sources wherever possible.

Gallery: Review: 2011 Ford F-450 Lariat

Photos copyright (C)2010 Sam Abuelsamid / AOL

[Source: The Detroit News]

Ford to idle first plant as a result of Japan disaster originally appeared on Autoblog on Sat, 02 Apr 2011 16:33:00 EST. Please see our terms for use of feeds.

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Report: U.S. car dealers raising prices because of Japan disaster

Filed under: Car Buying, Japan

Tsunami damage

The problems facing automakers in the wake of Japan’s deadly earthquake and the resulting tsunami are already manifesting themselves in the form of higher transaction prices on some Japanese cars, as U.S. dealers show less willingness to negotiate downward from the number on the window sticker, according to an AP report.

Automakers like Toyota, Honda and Nissan all say they have a sufficient supply of vehicles in the U.S. that had already been imported from Japan before the disaster struck. So, if there are still plenty of Japanese cars on Stateside lots, why the hardening prices?

It’s a simple case of supply and demand, explain some dealers polled by The Associated Press. “We’re going to run out of cars. We had five [Prius hybrids] on the ground yesterday, and I don’t know when I’ll get another,” says Dave Conant, owner of a Toyota dealership in San Diego, CA. “The market has shifted pretty quickly and dramatically.”

Of course, some people believe dealerships are just using speculative vehicle shortages to make a few extra bucks. We suspect the truth may be a little bit of both.

[Source: The Associated Press via ABC News | Image: Kiyoshi Ota/Getty]

Report: U.S. car dealers raising prices because of Japan disaster originally appeared on Autoblog on Sat, 19 Mar 2011 15:29:00 EST. Please see our terms for use of feeds.

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