Not All U.S. Factory Closures Are Made In Japan

Bertel Schmitt
by Bertel Schmitt

All told, it takes about 3 weeks for a shipborne container from Japan to reach its destination at the West Coast. To the East Coast, it’s about 5 weeks. With the Japanese earthquake and tsunami three weeks old, we should see the first real stateside disruptions by now. And we do. But not all originate in Japan.

Ford will stop production at plants in Flat Rock and in Kentucky next week. Nissan “will adjust its production schedule,” says the Freep, “mostly because of the impact of the earthquake in Japan three weeks ago.”

At Ford’s pickup plant in Kentucky, the “undisclosed parts shortages” come at the right moment. “Demand for pickup sales has declined,” the Freep writes.

Ford halts Flat Rock not because it doesn’t have enough parts. It has way too many Mustangs. Its supply is good for 116 days.

Nissan will stop production at factories in Tennessee, Mississippi and Mexico from a few days to a week because supply of parts from Japan is getting low.

Chrysler’s Windsor, Ontario, plant will shut now next week. “The latest shutdown is caused by a shortage of 3.6-litre Pentastar engines as well as plastic components, which house fuses,” writes the Windsor Star. Oddly, “the engines are assembled in Trenton, Mich., while the plastic fuse boxes are built in Mexico.”

Meanwhile in Japan, the “auto industry faces a vexing chicken-or-egg question. Are carmakers not producing cars because they can’t get parts? Or are parts makers not supplying parts because they’re getting no orders?” Automotive News’ Asian Editor Hans Greimel found no definitive answer. “Most Tier 1 suppliers here say they are ready to go — if only their automaking customers would fire up their factories and start placing orders again. But automakers say plants are down because the parts are, too.”

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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  • John Horner John Horner on Apr 03, 2011

    "“Most Tier 1 suppliers here say they are ready to go — if only their automaking customers would fire up their factories and start placing orders again. But automakers say plants are down because the parts are, too.”

    This isn't necessarily inconsistent. In order to build a car, the assembler must have all of the parts, not most of the parts. The vast majority of suppliers might indeed be fired up and ready to go, but only one part has to be on the unobtanium list for the all stop order to go out.

  • Z71_Silvy Z71_Silvy on Apr 03, 2011
    "Ford halts Flat Rock not because it doesn’t have enough parts. It has way too many Mustangs. Its supply is good for 116 days." There is a story here. It's funny that all of the blind Ford cheerleaders said that once the 2011 engines are released, sales of the Ford Donkey would explode. Welp...THAT didn't happen...in fact, sales have dropped. Maybe it's because of the major problems Ford is denying the manual transmission models are having...
  • Analoggrotto TTAC is full of drug addicts with short memories. Just beside this article is another very beautiful article about how the EV9 was internationally voted by a renowned board of automotive experts who are no doubt highly educated, wealthy and affluent; the best vehicle in entire world. That's planet earth for you numbskulls. Let me repeat: the best vehicle in the world is the Kia EV9. Voted, and sealed, and if you try to deny it Fanny Willis is ready to prosecute you; but she will send her boyfriend instead because she is busy.
  • MaintenanceCosts Our Bolt is not going away for a while but if I had to predict today what would replace it, I'd predict an EX30. It checks every box for my wife.
  • Ajla Both Biden and Trump are on record caring ~0% what the WTO says and the US government isn't bound by WTO rulings.
  • Honda1 The FJB Inflation Reduction Act will end up causing more inflation down the road, fact! Go ahead and flame me libbies, get back to me in a few years!
  • Cprescott Fisker is another brand that Heir Yutz has killed.
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