Toyota & Honda Say Normal Worldwide Production Will Resume Late This Year

Apparently, Toyota and Honda are getting a better handle on where their suppliers stand in quake-jolted Japan. Both companies are now reporting that normal worldwide production is unlikely to resume until almost the end of this year.
After an in-depth analysis of its suppliers affected by the earthquake and tsunami, Toyota announced global production will begin to ramp up as soon as July in Japan and August in North America, with all models back to normal production by November or December of this year.
Toyota indicated the one-month difference in the start date is due to the time required to ship parts from Japan to overseas plants.
Currently, Toyota pointed out that its manufacturing plants in Japan are working at 50 percent of capacity due to parts availability, while those in North America are operating at 30 percent of capacity because of the parts supply situation.
The company said it plans to continue procuring parts from the same suppliers, but that it will consider substitute parts. Toyota calculated there are approximately 150 parts affecting new-vehicle production, mainly electronic, rubber and paint-related.
For owners or service personnel who need replacement parts, etc., the automaker said it still has a variety in stock.
The automaker also emphasized it is continuing to do all it can to minimize the impact on employment. In North America, it announced last week that there are no plans for layoffs at manufacturing plants.
After giving the update, TMC president Akio Toyoda discussed the situation, first telling a gathering in Japan that he wanted to “pause briefly in memory of those who perished in the recent earthquake disaster, and to offer my sincere sympathies to the surviving victims.”
“Because the shipping of parts abroad requires time, the timing of the start of normalization of production overseas will be one month later than in Japan, or around August,” Toyoda stated. “Afterward, just as with production in Japan, although it will depend on the region and the model, we expect to return production to normal sometime around November or December.
“To all the customers who made the decision to buy a vehicle made by us, I sincerely apologize for the enormous delay in delivery,” Toyoda insisted. “To maintain such customers’ loyalty and understanding, Toyota Motor Corp. and its dealers are prepared to offer unprecedented customer service.”
Reaching out to the company’s dealers, he added, “To our dealers, suppliers and other related parties, I feel terribly sorry for the hardships we may have caused you. Please know that we are now considering supportive structures. The Great East Japan Earthquake was different than others in terms of the breadth of the regions that it affected. The damage touched the economy, the whole of Japan and all businesses."
Toyoda described the situation following the natural disasters in Japan.
“Immediately after the earthquake, Toyota, like others, sent its employees into the disaster zone to join forces with our plants, dealers and suppliers to take steps toward recovery,” Toyoda recalled.
“I also visited the affected areas several times. I saw people’s efforts first hand, and I was filled with confidence that their hard work would make possible a quicker recovery of production. Because the automobile industry has such a broad base, its effect on others is widely felt. Believing that the sooner the better, our entire company has been working to bring production back to normal,” he noted. “To those of you, I seek your understanding and support.”
Honda Shares Goal for Normal Production
Concerning production in Japan of finished units and parts for overseas production, Honda revealed on Monday that production volume will remain at approximately 50 percent of the original production plan until the end of June.
As the supply of parts remains fluid, Honda indicated that decisions concerning production from July on will be made “step-by-step while monitoring the situation.”
The automaker is using this strategy in hopes of moving toward the expected normalization of production in Japan before the end of this year.
Back on April 11, Honda resumed limited production of finished units throughout Japan at approximately 50 percent of the original production plan, bringing all plants in Japan back into production.
A week earlier, the company recapped that it began limited production of component parts for North American plants at several Honda plants in Japan.
“Honda is exerting a company-wide effort to normalize our production as soon as possible,” officials again stressed on Monday. “We deeply regret any inconvenience experienced by our customers and ask for their understanding during these challenging times.”
Nissan Shifts Production and Reaches Records
In other news associated with the Japanese disaster, Nissan recently announced its March production figures, revealing that the company was able to make up production outside of Japan to set an all-time record for March.
Nissan determined its global production in March increased 9.0 percent year-on-year to 382,704 units.
However, the OEM pointed out production in Japan decreased 52.4 percent year-over-year to 47,590 units, due to the effects of the earthquake and the termination of the government subsidy program for environmentally friendly vehicles.
To counteract these challenges, Nissan ramped up production outside of Japan by 33.3 percent year-over-year to 335,114 units, marking an all-time record for a single month.
In the U.S., the company said production increased 22.1 percent year-over-year to 59,613 units, mainly due to increased demand for the Altima and Pathfinder.
Nissan went on to highlight production increases at other sites worldwide:
—Mexico: production increased 37.6 percent year-over-year to 52,968 units due to increased demand for the new March, Tiida and Sentra.
—United Kingdom: production increased 28.7 percent year-over-year to 45,447 units due to increased demand for the new Juke and Qashqai.
—Spain: production increased 89.3 percent year-over-year to 14,959 units mainly due to increased demand for Primastar and NV200.
—China: production increased 21.6 percent year-over-year to 115,482 units due to increased demand for the new Sunny and Qashqai, marking an all-time record for a single month.