MANUFACTURING:JAPAN'S BIGGEST carmakers said they were suspending production at their domestic plants through to at least tomorrow to cope with the effects of Friday's earthquake and tsunami.
Apart from damage to their own plants, Toyota, Honda and their competitors were assessing the state of their suppliers yesterday as they considered when they might be able to resume production.
Analysts said that because of inventory in the pipeline, the flow of vehicles and parts to Japanese carmakers’ overseas operations was secure for the short term.
However, because of unanswered questions about the viability of the industry’s suppliers and the country’s ports, they said it was far too early to provide a prognosis for recovery for one of Japan’s biggest industrial sectors and exporters.
Toyota, Japan’s and the global car industry’s biggest producer, said yesterday’s shutdown at all of its Japanese plants – including those of its Hino and Daihatsu subsidiaries – would be extended to tomorrow.
Honda, the country’s second largest carmaker, said it was halting production at its Japanese plants for a week to check safety, power supply, infrastructure and the state of its suppliers.
Nissan said it would halt operations at its Oppama, Kyushu, Nissan Shatai and Yokohama plants south of Tokyo until tomorrow. Its Tochigi and Iwaki plants, north of Tokyo, would remain shut until Friday.
The company also said it would do its utmost to support “restoration activities” in Japan, including conserving its use of electricity .
Among smaller carmakers, Mitsubishi said its production hubs in Japan’s Aichi, Gifu, and Okayama prefectures were not affected by the earthquake. The company said it was checking the state of its suppliers, some of which had reported damage.
Japan’s carmakers, like most of their competitors, produce and source most of their supplies in the regions where they produce vehicles. However, the companies produce at home many vehicles that are destined for export markets. Toyota, for example, produces in Japan the bulk of its Prius hybrid cars and Lexus luxury range.
In Europe the company produces many of its models, including the Auris compact and Avensis large car, locally, but imports others from Japan, including the RAV4 sport utility vehicle, and iQ city car.
Toyota said because cars took about six weeks from the factory in Japan to reach Europe, this week’s production halt would have no immediate effect on its operations. However, like other automakers, it said the impact would depend on how long the disruption in Japan lasted and when production restarted.
Honda said yesterday that the problems in Japan might have an effect on its large operation in the UK. At the weekend the company established emergency co-ordination centres at its plants in Tochigi, Japan, and Swindon, England, to liaise on business issues concerning its supply of components and the of its employees.