Parts Paralysis: Toyota's Sendai Plant Out Of Gas

Bertel Schmitt
by Bertel Schmitt

By now, Toyota had wanted to have finished to move all of the production from Sagamihara near Tokyo to the new plant in Ohira in Miyagi Prefecture. Ohira already built the Yaris for export, the production of the Corolla for the domestic market was scheduled to follow, along with 400 employees who wanted to exchange the New Jersey-ish surroundings of Kanagawa for the mountainous beauty (and lower living expenses) of Ohira. Then, the tsunami intervened. Toyota has put a halt on the move.

The new Ohira factory is in good shape. The problem again is energy. The Ohira factory is cut off from vital gas supply to the factory in northeastern Japan, Toyota officials told The Nikkei [sub]. According to an energy brief by The Institute of Energy Economics, Japan, the Sendai LNG terminal and regasification plant was seriously damaged. Repairs will take longer than a month.

Toyota also delayed the move up north because the disrupted infrastructure in the area would place undue hardship on new arrivals. Currently, displaced people move north to south, not the other way.

Toyota decided to delay the relocation “until April or later.”

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Caljn Caljn on Mar 27, 2011

    What does "New Jersey-ish" surroundings mean? I would be quite happy if the facility was located in the horse country of Somerset County near my Uncle's place or perhaps by the ocean near Cape May. But I suspect your thinking of an infamous 10 mile stretch of Turnpike. Pity. You need expand your horizons. This from a Californian.

    • John Horner John Horner on Mar 27, 2011

      Ignorant people around the globe reflexively bag on New Jersey. Cheap shots are so easy to take, why work hard?

  • TheOtherLew TheOtherLew on Mar 27, 2011

    Why is this article titled "Parts Paralysis"? There's nothing in the article about parts being lacking. Isn't the Ohira factory an assembly plant, not a parts factory? And the key missing factor is specifically identified as gas, not parts.

  • Eric Chen Eric Chen on Mar 27, 2011

    Being from NJ myself, I am certain that Herr Schmidt had only the somewhat dense traffic and busy commercial activities in mind!

  • Motorhead10 Motorhead10 on Mar 28, 2011

    gotta chime in here - relocated to the aforementioned Somerset County (from the Isle of Long) about a year ago. Never been happier - best thing that ever happened to me and the family. Beautiful rural-ish surroundings, great people, polite, respectful, well-mannered children everywhere you go. Why the Toyota workers would want to trade this to live in the mountains doesn't make a ton of sense to me (maybe the lower living expenses along with the lower quality of life appear attractive) - but to each his own.

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