Parts Paranoia Daily Digest, March 24

Bertel Schmitt
by Bertel Schmitt
parts paranoia daily digest march 24

Our daily run-down of delays, shut-downs, shortages, and postponements, triggered by the March 11 tsunami in Japan.

  • Toyota informed its U.S. dealers and workers to expect production slowdowns due to parts shortages. “Today, we communicated to team members, associates and dealers here that some production interruptions in North America are likely. It’s too early to predict location or duration,” Toyota said in a statement. Most, but not all of the parts for vehicles built in North America are sourced here. Wall Street Journal
  • Toyota expects to idle its pickup truck assembly plant south of San Antonio. “We are informing our team members that, with the situation over in Japan, it is likely that we will see some nonproduction days coming,” Craig Mullenbach, spokesman for Toyota’s San Antonio plant, said. Mullenbach added that parts needed to build the full-sized Tundra and mid-sized Tacoma pickup truck in San Antonio are running out. Reuters
  • Honda will suspend car production at its Japanese factories until at least April 3. Honda will temporarily transfer some functions such as car development and procurement out of its badly damaged R&D center in Tochigi. Reuters
  • Suzuki said its three assembly factories in Japan will remain closed on Thursday and Friday. Reuters
  • Mazda will suspend production of vehicle repair parts and parts for overseas production at its Hofu factory in Yamaguchi on March 28, after having resumed limited operations there earlier this week. The Hiroshima factory will continue limited production until further notice. Reuters
  • says that American consumers are paying at least $2,000 more for a Toyota Prius. “Prius went from selling about $300 under invoice three weeks ago to selling right at the MSRP since the earthquake,” said Jesse Toprak. Detroit Free Press
  • Parts from the U.S. could be shipped to Japan at an increased rate. Nissan is considering shipping more engines from Decherd, Tenn., to Japan to make up for the losses at their Iwaki plant. Detroit Free Press
  • Edmund’s Michelle Krebs said shutdowns now occurring outside Japan are probably just the beginning: “All automakers are just now figuring out who supplies every little part. The shortage of any one could shut down an assembly line. Toyota isn’t the only one vulnerable; virtually all major automakers have some risks.” Reuters
  • In South Africa, Japanese vehicle manufacturers and importers expect a disruption to supplies of both imported vehicles and parts. Nissan SA MD Mike Whitfield said that “there will be an impact on SA, but as we are operating a long lead time, our pipeline is currently full and we should see the impact in about six weeks. The full extent is not known yet.” Toyota SA spokesman Leo Kok said that the company expects shortages of the Yaris, the Quantum and Sesfikile. Business Day
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  • Fiestajunky Fiestajunky on Mar 24, 2011

    I have already seen a manifestation of this in my search for a new Honda Accord. I had requested a quote from the local dealer in Chattanooga and after being bombarded with emails pressuring me to BUY NOW !!!! NOW!!! , I recieved one yesterday that darkly hinted that prices will be going up because...Well, because there is a human tragedy unfolding in Japan and they can make a quick buck off of it. I was so disgusted with this tactic that I just demanded that they stop contacting me. I know that their will be a supply/demand issue here for a time,but I expected more integrity from a Honda dealer. I guess that I was wrong. That said, I really hope that our prayers are answered for a speedy recover for the Japanese people.

  • John Horner John Horner on Mar 24, 2011

    "Toyota expects to idle its pickup truck assembly plant south of San Antonio."

    Not to mention the slack demand for Toyota's trucks in the US market ....