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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Report: Quake fallout may delay Toyota Prius V sales by up to a year

Filed under: Hybrid, Minivan/Van, Japan, Hatchback, Toyota

prius v wagon

2012 Toyota Prius V – Click above for the high-res image gallery

In March, we heard that, because of production delays as a result of the March 11 earthquake in Japan, Toyota was looking at delays for the new Prius V and Prius + models set to go on sale in North America and Europe, respectively. The Detroit News is reporting that those delays could last as long as a year for some buyers due to battery pack shortages.

Despite the production problems, Toyota still launched the the larger Prius variant in Tokyo. But the lack of batteries means that the automaker can only build 1,000 of the three-row models with the lithium ion battery pack per month, and another 2,000 models with the nickel-metal hydride battery pack. That doesn’t quite jive with the automaker’s 18,000 orders for the nickel-metal hydride-equipped five-seater or the 7,000 orders for the pricier three-row model. And that’s just the orders for the up-sized Prius in Japan. The automaker intends to sell about 2,000 units per month each in North America and Europe as well.

In the big picture, Toyota has at least launched the new Prius, and new models should begin trickling in over the next few months. The Prius + won’t be offered in Europe until mid-2012, and it won’t be available in the U.S. at all.

Quake fallout may delay Toyota Prius V sales by up to a year originally appeared on Autoblog on Fri, 13 May 2011 18:30:00 EST. Please see our terms for use of feeds.

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Toyota Q4 profits fall 77% due to quake

Filed under: Japan, Plants/Manufacturing, Toyota, Earnings/Financials

toyota emblem logo

Toyota has announced profits of $314 million for the first three months of 2011, down 77 percent versus the automaker’s fiscal fourth quarter a year earlier. Toyota still managed a profit in spite of the March 11 earthquake that shuttered most Japanese plants, yet the $314 million is only a fourth of what analysts were expecting Toyota to make. Toyota’s sales were predictably low for the quarter, and revenue was hurt as a result.

Toyota’s profits for its fiscal fourth quarter may be disappointing, but the automaker is likely to release still worse numbers for the period through June. The automaker is still struggling through supply issues, with many plants running at only 50-percent capacity if they’re running at all. Further, the automaker says that dealers in the U.S. and China are likely to see less product in the coming months, which could lead to much lower revenue.

On a brighter note, Toyota now says that production should ramp up to 70 percent of capacity by June, up from previous estimates of July or August. That should help get Toyota back on its feet faster, which is good for everyone.

For the year, Toyota earned $5.9 billion, or nearly three times the profit of fiscal year 2009. Revenue was also up by .2 percent to $237 billion on sales of 7.3 million vehicles, up by 71,000 units compared to 2009. Sales in the U.S. were down by 67,000 units.

Hit the jump to read over the Toyota press release, which includes volume and revenue breakdowns by region.

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Toyota Q4 profits fall 77% due to quake originally appeared on Autoblog on Wed, 11 May 2011 15:31:00 EST. Please see our terms for use of feeds.

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Quake damaged paint plant comes back online in Japan

Filed under: Government/Legal, Plants/Manufacturing, Safety

red paint lincoln mks

The March 11 earthquake and resultant tsunami in Japan rocked the country’s automotive supply chain, leaving many suppliers with damaged factories and unreliable power. One nearly immediate impact was that automakers like Ford, Toyota and Chrysler could no longer offer colors like red or black.

That’s because Merck’s Onahama factory, which makes the Xirallic pigment used to add luster to colors, was damaged by the natural disaster. But while repairs were scheduled to take longer, The Detroit News reports that the facility was fixed ahead of schedule and production has resumed.

Peter Halas, who heads Pigments and Cosmetics at Merck, said in a statement that the timely repair of the factory was a major achievement, adding “I would like to thank our employees in Japan for their tremendous efforts.”

Merck says that the Onahama facility, which is 36 miles south of the badly damaged Fukushima nuclear plant, is outside of the evacuation area, and the company will adhere to public directives to ensure the safety of employees. The company is also testing products from the plant to comply with safety standards.

To help prevent future shortages of Xirallic, Merck says it plans to establish another production site in Germany for the popular pigment.

Quake damaged paint plant comes back online in Japan originally appeared on Autoblog on Tue, 10 May 2011 14:01:00 EST. Please see our terms for use of feeds.

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Lexus boss Templin says brand to lose luxury sales crown over Japan quake

Filed under: Japan, Lexus, Luxury

mark templin lexus vp Lexus has been the king of luxury car sales in the U.S. for over a decade, but Toyota’s high-end brand will likely lose its crown in 2011, due at least in part to the March 11 earthquake in Japan.

Certainly, Lexus was already facing a great deal of pressure from rivals like BMW and Buick, but Automotive News reports that Toyota VP and Lexus Group Manager Mark Templin says dealers are down to a 30-day supply of most models, and that vehicle shortages will be felt as early as this week. The problem is that some key components from Japan come from plants that are still shut down as a result of the March 11 earthquake and tsunami. The Lexus CT 200h is reportedly close to sold out due to the issues.

Further complicating matters is the fact that Lexus ramped up the leasing business three years ago, and those customers will soon be bringing back their luxury rides in large numbers. That’s good news for dealers looking for products to sell, but it’s bad for customers who may not have the ability to purchase a new Lexus model.

The automaker is looking to ease this issue by offering six-month lease extensions. At the same time, Templin knows many customers will simply purchase their lease vehicle outright, and he’s asking dealers not to gouge those customers. The fear is that a shortage of models will result in more demand than supply, which could then jack up the price of Lexus models to unreasonable levels.

Since the automaker appears to be out of the running for the 2011 luxury sales crown, it seems natural that Lexus will come back with a vengeance in 2012. But Templin says the automaker may never again grab the sales crown, since luxury car makers are aiming down-market to improve corporate fuel economy averages. Templin opines that it won’t be long before a luxury car maker hits 500,000 sales in a year.

[Source: Automotive News – sub. req.]

Lexus boss Templin says brand to lose luxury sales crown over Japan quake originally appeared on Autoblog on Tue, 26 Apr 2011 16:20:00 EST. Please see our terms for use of feeds.

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Honda CEO Takanobu Ito used CB1000 motorcycle to tour quake area

Filed under: Japan, Honda, Motorcycle

Honda CEO Takanobu Ito on Honda CB1000

The March 11th earthquake and tsunami in Japan hit Honda hard, as production was down for weeks and the automaker’s research and development center was badly damaged. In fact, the quake damaged the Tochigi facility so badly that one employee died and 17 others were injured after a cafeteria wall collapsed.

Due to the fact that many roads were closed or badly damaged, getting to the facility was a challenge. But that didn’t stop Honda CEO Takanobu Ito from visiting the site in person to assess the damage. The Wall Street Journal reports that Ito hopped on his stripped-down, 1,100cc Honda CB1100 and headed to the site only two days after the incident. The 57-year-old CEO and his trusty bike were able travel where few autos could go, and he made it all the way to the Tochigi facility to witness the damage for himself.

The Tochigi facilities are very important to Honda as they are the company’s main research and development centers. The automaker was forced to relocate 1,000 of its engineers to other facilities, but the damaged buildings still house another 500 workers. Ito adds that the automaker will rebuild at the site because it “is a place where all Honda’s brains are gathered.”

The fact that Ito risked his own safety to check on the welfare of his engineers has no doubt boosted his credibility among Honda employees. And it likely doesn’t hurt that he got there on the back of a Honda sport bike. Nicely done, sir.

[Source: Wall Street Journal | Image: Kazuhiro Nogi/Getty]

Honda CEO Takanobu Ito used CB1000 motorcycle to tour quake area originally appeared on Autoblog on Thu, 14 Apr 2011 14:29:00 EST. Please see our terms for use of feeds.

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PSA: Japan automakers have lost half a million units since quake

Filed under: Etc., Japan, Plants/Manufacturing, Honda, Mazda, Mitsubishi, Nissan, Subaru, Suzuki, Toyota

Damaged Suzuki vehicles

According to Automotive News, Japanese automakers have seen their production drop by over 500,000 units since the March 11 earthquake struck the island nation. In the month since the disaster, the country’s seven largest automakers lost around 516,000 units of production due to damage to production facilities and supplier delays. Toyota has been the hardest hit, with a loss of 260,000 units as of April 8. The automaker has a total of 18 domestic manufacturing facilities, and while two of those are back online, the remainder won’t open their doors until at least April 18. Even then, the plants may shut down again after April 27.

Honda, Suzuki, Subaru, Nissan, Mazda and Mitsubishi are all operating on some level, though production is an on-again, off-again affair. As an example, Nissan has managed to re-open all five of its Japanese facilities, though production has been scaled back to half-pace for the time being. There’s no word as to when full production will ramp up once again.

[Source: Automotive News – sub. req.| Image: Wally Santana/AP]

PSA: Japan automakers have lost half a million units since quake originally appeared on Autoblog on Wed, 13 Apr 2011 17:28:00 EST. Please see our terms for use of feeds.

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Report: Ford feels Japan quake effect with shortage of red, black paint

Filed under: Plants/Manufacturing, Ford

2010 Ford Taurus SHO

2010 Ford Taurus SHO – Click above for high-res image gallery

Due to a pigment shortage stemming from the March 11 earthquake in Japan, Ford has had to stop taking new orders for cars in Tuxedo Black, and is limiting orders of three shades of red. Officials from Ford say they’re working on another source for the pigment as you read this, and have enough cars in each color to satisfy demand until production resumes.

The paint shortage affects the F-150 and Super Duty lines of pickups, as well as the Explorer, the Expedition, Focus, Taurus and the Lincoln MKS and Navigator. Ford’s slowdown follows General Motors, who slowed production of pickups in Shreveport, Louisiana, as well as compact cars in Europe following parts shortages.

Honda, Toyota and Nissan have all experienced slowdowns as a result of the quake, though none have had to limit color choices.

Gallery: Review: 2010 Ford Taurus SHO

Photos copyright (C)2011 John Neff / AOL

[Source: Bloomberg]

Report: Ford feels Japan quake effect with shortage of red, black paint originally appeared on Autoblog on Fri, 25 Mar 2011 16:01:00 EST. Please see our terms for use of feeds.

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Study: Worldwide auto production could drop 30% due to quake in Japan

Filed under: Japan, Plants/Manufacturing

Auto production in Japan

You’ve likely seen plenty of news lately about how Japanese automakers have been affected by the March 11 earthquake in Japan, but what about the rest of the industry? The Detroit News reports that research firm IHS Automotive thinks that global auto production could drop by 30 percent, and nearly every major automaker will be affected.

The key to that dire prediction will be the speed with which Japanese suppliers can get back to making parts for the industry. IHS Vice President Michael Robinet reportedly told DetNews that if suppliers aren’t online within six weeks, global vehicle production could drop by 100,000 units per day. With average total production sitting at 280,000 to 300,000 units per day, 100,000 represents about 30 percent of all vehicles built. Robinet adds that if parts don’t start coming online quickly, automakers will begin feeling the pinch by mid-April.

IHS points to electronics and transmission components as the most likely to run dry. And that 30-percent figure could morph into 40 percent if automakers can’t get replacement parts within eight weeks.

Sobering statistics, indeed. We’re thinking automakers are hoping Japan can rebuild factories as quickly (and miraculously) as it can rebuild highways.

[Source: The Detroit News]

Study: Worldwide auto production could drop 30% due to quake in Japan originally appeared on Autoblog on Thu, 24 Mar 2011 18:31:00 EST. Please see our terms for use of feeds.

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Japanese repair quake-ravaged road in just six days

Filed under: Japan

Japan earthquake fixed road

Japan earthquake damaged roadDue to the extensive damage in Japan caused by the massive earthquake and resultant tsunami on March 11, many have questioned if the island nation can recover in a year, much less a few months. If the swiftness with which the Japanese can repair roads is any indication, we wouldn’t bet against the country cleaning up this catastrophe in short order.

As a result of the quake, a 150-meter section of the Great Kanto Highway in Naka was absolutely obliterated, with massive chasms running right through the middle of the road. Work crews at the NEXCO road repair company sprang into action on March 17, working at a fevered pitch to help get their country on the road to recovery, literally. Amazingly, after only six days of labor, the road is silky smooth and ready for travel. Look at the the before and after photos above to see just how amazing this feat is.

Given the fact that road crews in the U.S. can spend three or more months repairing a single lane of concrete, only to leave the orange barrels on the road for another two weeks, we’re blown away by this feat of engineering. Simply amazing.

[Source: Daily Mail via Jalopnik | Images: AP Photo/NEXCO East]

Japanese repair quake-ravaged road in just six days originally appeared on Autoblog on Thu, 24 Mar 2011 12:30:00 EST. Please see our terms for use of feeds.

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