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.

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  • 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.

  • Lichtronamo Watch as the non-us based automakers shift more production to Mexico in the future.
  • 28-Cars-Later " Electrek&nbsp;recently dug around in Tesla’s online parts catalog and found that the windshield costs a whopping $1,900 to replace.To be fair, that’s around what a Mercedes S-Class or Rivian windshield costs, but the Tesla’s glass is unique because of its shape. It’s also worth noting that most insurance plans have glass replacement options that can make the repair a low- or zero-cost issue.&nbsp;"Now I understand why my insurance is so high despite no claims for years and about 7,500 annual miles between three cars.
  • AMcA My theory is that that when the Big 3 gave away the store to the UAW in the last contract, there was a side deal in which the UAW promised to go after the non-organized transplant plants. Even the UAW understands that if the wage differential gets too high it's gonna kill the golden goose.
  • MKizzy Why else does range matter? Because in the EV advocate's dream scenario of a post-ICE future, the average multi-car household will find itself with more EVs in their garages and driveways than places to plug them in or the capacity to charge then all at once without significant electrical upgrades. Unless each vehicle has enough range to allow for multiple days without plugging in, fighting over charging access in multi-EV households will be right up there with finances for causes of domestic strife.
  • 28-Cars-Later WSJ blurb in Think or Swim:Workers at Volkswagen's Tennessee factory voted to join the United Auto Workers, marking a historic win for the 89- year-old union that is seeking to expand where it has struggled before, with foreign-owned factories in the South.The vote is a breakthrough for the UAW, whose membership has shrunk by about three-quarters since the 1970s, to less than 400,000 workers last year.UAW leaders have hitched their growth ambitions to organizing nonunion auto factories, many of which are in southern states where the Detroit-based labor group has failed several times and antiunion sentiment abounds."People are ready for change," said Kelcey Smith, 48, who has worked in the VW plant's paint shop for about a year, after leaving his job at an Amazon.com warehouse in town. "We look forward to making history and bringing change throughout the entire South."&nbsp;&nbsp;&nbsp;...Start the clock on a Chattanooga shutdown.
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