One Year After The Disaster, A Visit To A Symbol Of The Recovery: Toyota's Prius C Plant

Bertel Schmitt
by Bertel Schmitt

Today, at 2:46 pm, Japan came to a stand-still, again. Trains and subways stopped. People did fold their hands, faced in the general direction of the northeastern coast of Tohoku, and said a silent prayer. Japan and the world marked the one year anniversary of the earthquake and tsunami that left whole towns razed, more than 19,000 people dead or missing, 344,000 people displaced, and a large area around the destroyed Fukushima Daiichi power plant off-limits for decades, if not permanently.

Writers often like to equate the power released by the quake to the nuclear bombs that had been dropped on Hiroshima and Nagasaki. Depending on who you read and believe, it was anywhere between 31,700 and 600 million Hiroshima bombs. Large parts of the coastal areas are dotted with huge, neatly stacked piles of rubble which nobody wants to take and nobody knows what to do with. The devastation was so big that it turned into an attraction on Google Earth. Considering the immense damage, it is amazing how quickly the country did rebound. On Friday, I visited what was presented to me as an emblem of the amazing turn-around, Toyota’s plant in Kanegasaki, Iwate Prefecture. Here, 1,700 employees are working overtime to build Toyota’s Aqua / Prius c, for which everybody is screaming.

“The Aqua has turned into a symbol of our recovery,” says Tetsuo Hattori, CEO of Kanto Auto Works, one of the members of the sprawling Toyota Group empire. His company is the sole manufacturer of the Aqua / Prius c compact hybrid that itself is turning into a symbol for the turn-around of Toyota. Touted as the world’s cheapest and most fuel-efficient hybrid car, the Aqua sold 13,485 units in January, the first month after its launch. It sold 21,951 in February. It could have sold many more, would the factory in Kanegasaki be able to build more. Toyota sits on 120,000 backorders for Japan alone.

The two lines in Kanegasaki have an annual capacity of 300,000 units, that comes out to 25,000 cars a month. With overtime, output can be raised to 30,000 per month. The plant made 30,000 Aqua in January, 30,000 Aqua in February and will make 30,000 Aqua in March. 24,000 of those stay in Japan. 6,000 are being exported.

The plant is supposed to make other cars than the Aqua. The Iwate plant is also responsible for the production of the Blade, Ist/Scion xD, the Belta/Yaris Sedan, and Ractis. These cars had to make way for the Aqua. All traces of these cars have vanished from the factory.

From the two manufacturing lines to the tree-lined lots where finished cars await shipment, it is Aqua/Prius c as far as the eye can see. Asked what he will do to create more capacity for the Aqua, Hattori says that production of the Ractis may be gradually shifted to the Kanto Auto Works plant in Higashi Fuji. Here, old Toyota standbys such as the Century, or the Crown Comfort, popular with notoriously overpaid Japanese taxi drivers, are being built. A look at the numbers shows that shifting production will bring no relief. It simply cements the status quo. Nevertheless, Hattori flatly denies rumors that the Aqua/Prius c might be built elsewhere than at Kanto Auto Works, or even in a different plant than in Iwate.

We are up in the north of Japan. 500 miles westward, across the sea, is Siberia. The ground is still covered with snow. That snow is “a pain in the neck,” says plant manager Kazutoshi Yoshida. He will keep 1,500 tons of the pain in the neck literally under wraps, and use water from the melting snow to cool the air-conditioning in summer. Once the snow is gone, it will be time for the goats. 12 of them do lawn care duty without using any fuel. They also “create a relaxed mood amongst our workers.” I don’t dare to ask what happens to the well-fed goats come wintertime.

A year ago, I had visited Toyota’s new plant in Ohira, 70 miles south of Kanegasaki. Back then, I had speculated that the plant may be a pilot plant. This time, that title is official. “We want to be the global model plant for compact vehicles,” says a proud Hattori, and his plant manager Yoshida says it again. The workers are highly trained, encouraged to acquire a multitude of skill sets. Workers regularly act as production engineers, providing creative solutions. “This is not something that can happen in emerging nations,” says Yoshida. In 2007, 60 percent of what this plant made was exported. Now, the rate is down to 30 percent, with further reductions likely unless the yen gets weaker and the dollar stronger. If this plant can’t export cars, at least it can export plants.

Some 50 miles from the coast, and sheltered by two mountain ranges, the plant survived the earthquake only slightly damaged. It was back up four days after the quake. Then, it had to wait for parts from less lucky suppliers. One factor in its survivability is the gas-fired cogeneration plant that can provide two thirds of the plant’s electrical power. It will be put to the test this summer. In March and April, the last two of Japan’s 54 nuclear power plants will go off-line for maintenance, leaving Japan’s power grid in an even more precarious state than last summer.

Last Friday, the plant opened to outside visitors for the first time since March 11, 2011. As our plant tour draws to an end, the line stops, workers fold their hands, bow their heads, and face east in silent prayer. It is 14:26, time to remember the dead. But it is Friday, two days ahead of the anniversary.

“Tomorrow, we work with one shift,” says my guide. “On Sunday, people want to rest.“

No work on Sunday. A year after the monster quake, normalcy has returned to Japan. In this part of Iwate, at least.

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.

More by Bertel Schmitt

Comments
Join the conversation
3 of 29 comments
  • Danwat1234 Danwat1234 on Mar 12, 2012

    I hope the Prius C is a massive success.

  • GS650G GS650G on Mar 12, 2012

    Tell me again why we are building Volts, Tesla and Fisker cars again at great taxpayer expense and selling them for outrageous amounts? Oh yeah, that environmental movement thing.

  • Alan My view is there are good vehicles from most manufacturers that are worth looking at second hand.I can tell you I don't recommend anything from the Chrysler/Jeep/Fiat/etc gene pool. Toyotas are overly expensive second hand for what they offer, but they seem to be reliable enough.I have a friend who swears by secondhand Subarus and so far he seems to not have had too many issue.As Lou stated many utes, pickups and real SUVs (4x4) seem quite good.
  • 28-Cars-Later So is there some kind of undiagnosed disease where every rando thinks their POS is actually valuable?83K miles Ok.new valve cover gasket.Eh, it happens with age. spark plugsOkay, we probably had to be kewl and put in aftermarket iridium plugs, because EVO.new catalytic converterUh, yeah that's bad at 80Kish. Auto tranny failing. From the ad: the SST fails in one of the following ways:Clutch slip has turned into; multiple codes being thrown, shifting a gear or 2 in manual mode (2-3 or 2-4), and limp mode.Codes include: P2733 P2809 P183D P1871Ok that's really bad. So between this and the cat it suggests to me someone jacked up the car real good hooning it, because EVO, and since its not a Toyota it doesn't respond well to hard abuse over time.$20,000, what? Pesos? Zimbabwe Dollars?Try $2,000 USD pal. You're fracked dude, park it in da hood and leave the keys in it.BONUS: Comment in the ad: GLWS but I highly doubt you get any action on this car what so ever at that price with the SST on its way out. That trans can be $10k + to repair.
  • 28-Cars-Later Actually Honda seems to have a brilliant mid to long term strategy which I can sum up in one word: tariffs.-BEV sales wane in the US, however they will sell in Europe (and sales will probably increase in Canada depending on how their government proceeds). -The EU Politburo and Canada concluded a trade treaty in 2017, and as of 2024 99% of all tariffs have been eliminated.-Trump in 2018 threatened a 25% tariff on European imported cars in the US and such rhetoric would likely come again should there be an actual election. -By building in Canada, product can still be sold in the US tariff free though USMCA/NAFTA II but it should allow Honda tariff free access to European markets.-However if the product were built in Marysville it could end up subject to tit-for-tat tariff depending on which junta is running the US in 2025. -Profitability on BEV has already been a variable to put it mildly, but to take on a 25% tariff to all of your product effectively shuts you out of that market.
  • Lou_BC Actuality a very reasonable question.
  • Lou_BC Peak rocket esthetic in those taillights (last photo)
Next