Honda and Toyota: Getting Back on Track

This year hasn’t been the kindest to Japanese automakers Honda and Toyota. The devastation wrought by March’s earthquake and Tsunami in Japan, resulted in severe disruptions to their supply chains, causing dealer inventories to run low and other automakers to gain ground in sales.



However, after a dismal July, there are signs that both Honda and Toyota are gaining momentum; supply from Japan has improved, while factories in North America are running in overdrive in an effort to boost vehicle inventory to more ‘normal’ levels.



Even though rivals, including Detroit’s big three, have gained ground this year as a result of problems facing the Japanese duo, most seem to view Honda and Toyota’s improving fortunes quite favorably.



Don Johnson, General Motors’ US sales head, believes that more Hondas and Toyotas on dealer lots will help stimulate overall growth in new car sales, bringing back buyers who’ve been sitting on the fence. ”A lot of brand-loyal customers have chosen to sit on the sidelines until selection and price improve,” he says. “They will be coming back into the market.”



That said, it is likely to be some time before inventory levels reach pre-March totals. Randy Pflughaupt, group vice president of sales administration for Toyota, believes it will be 2012 before the automaker achieves year-over-year sales increases; Honda meanwhile, is currently running at around 95 percent of normal production in Japan, with full inventory achieved on all US product lines bar the Civic which traditionally is one of it’s most popular models.



According to a number industry analysts, it’s inventory that defines the ‘winners’ and ‘losers’ in the marketplace and right now, as it stands, Domestic brands are leading the way, Chrysler boasting a 72 day supply on its vehicles, allowing it to post a 20 percent gain in sales during July, as Honda and Toyota combined, slipped 6.9 percent. Ford, with a 54 day supply has seen sales jump by 13 percent for the bread and butter brand and 40 percent for Lincoln in the same period. GM, with a 73 day supply has reported gains of some 8 percent.



“Whoever has the cars, outsells everybody,” declared Ralph Martinez, a Chrysler dealer principal from Wilsonville, Oregon. “People are out there buying,” he said, but “they’re going to places that have a good selection.”



Source;

http://www.autoguide.com/auto-news/2011/08/honda-and-toyota-getting-back-on-track.html

Honda and Toyota: Getting Back on Track

This year hasn’t been the kindest to Japanese automakers Honda and Toyota. The devastation wrought by March’s earthquake and Tsunami in Japan, resulted in severe disruptions to their supply chains, causing dealer inventories to run low and other automakers to gain ground in sales.



However, after a dismal July, there are signs that both Honda and Toyota are gaining momentum; supply from Japan has improved, while factories in North America are running in overdrive in an effort to boost vehicle inventory to more ‘normal’ levels.



Even though rivals, including Detroit’s big three, have gained ground this year as a result of problems facing the Japanese duo, most seem to view Honda and Toyota’s improving fortunes quite favorably.



Don Johnson, General Motors’ US sales head, believes that more Hondas and Toyotas on dealer lots will help stimulate overall growth in new car sales, bringing back buyers who’ve been sitting on the fence. ”A lot of brand-loyal customers have chosen to sit on the sidelines until selection and price improve,” he says. “They will be coming back into the market.”



That said, it is likely to be some time before inventory levels reach pre-March totals. Randy Pflughaupt, group vice president of sales administration for Toyota, believes it will be 2012 before the automaker achieves year-over-year sales increases; Honda meanwhile, is currently running at around 95 percent of normal production in Japan, with full inventory achieved on all US product lines bar the Civic which traditionally is one of it’s most popular models.



According to a number industry analysts, it’s inventory that defines the ‘winners’ and ‘losers’ in the marketplace and right now, as it stands, Domestic brands are leading the way, Chrysler boasting a 72 day supply on its vehicles, allowing it to post a 20 percent gain in sales during July, as Honda and Toyota combined, slipped 6.9 percent. Ford, with a 54 day supply has seen sales jump by 13 percent for the bread and butter brand and 40 percent for Lincoln in the same period. GM, with a 73 day supply has reported gains of some 8 percent.



“Whoever has the cars, outsells everybody,” declared Ralph Martinez, a Chrysler dealer principal from Wilsonville, Oregon. “People are out there buying,” he said, but “they’re going to places that have a good selection.”



Source;

http://www.autoguide.com/auto-news/2011/08/honda-and-toyota-getting-back-on-track.html

Honda gives back

by David Taylor of www.simcoe.com



ALLISTON - When the sirens started their relentless wail on March 11, 2011 along the eastern seaboard of Japan, who could have imagined that a warning signal might also be resonating in a community in Central Ontario 10,000 kilometres away?



Ever since a massive earthquake rocked Japan almost five months ago, the automobile industry has been adjusting production levels. And its effects have been felt here.



While the world watched as Japan suffered and fought to rebuild, the question became: How would it affect the Simcoe region and the close-knit community of Alliston where Honda operates two sprawling production facilities, employing more than 4,000 people?



The Honda of Canada Manufacturing (HCM) facility in Alliston is one of the assembly operations directly affected by parts shortages.



The vast majority of Honda’s parts and materials are sourced here in North America, but Japan is still a critical source.



“A few critical parts continue to be supplied from Japan,” said Honda Canada executive vice president Jerry Chenkin at Honda Canada’s new, eco-driven headquarters in Markham. “At this time, many of Honda’s Japan-based parts suppliers have resumed production and most are functioning at 50 per cent or better capacity.”



Chenkin said Honda is working diligently and closely with the few suppliers that have yet to resume production to re-establish their operations, while also evaluating additional sources for some parts in the supply chain.



However, the situation changes constantly, a fact borne out by twice-a-day conference calls with the worldwide corporate head office and parts facilities in Japan, he added.



HCM in Alliston and other plants around the world have been forced to cut back operations, limiting overall production.



Following the tsunami, workers on the production lines reported for duty and worked on the line for half their normal shift. The balance of their hours was not been cut, though. They performed other work around the plant on a first come, first serve basis. And, during most non-production periods, HCM employees have the option to take time off without pay, cover the time off with vacation, or report to work for non-production activities that might include cleaning and maintenance, additional training, and involvement in a wide variety of projects.



Honda is doing all that it can to insulate their local workers from the effects of the disaster many time zones away.



“Honda remains focused on minimizing the impact to associates and their families, and plans no layoffs at any of its North American facilities,” Chenkin said.



Honda started reducing production at various North American plants at the end of March since their supply chain system, like most in the industry, allows for between 30 and 40 days of uninterrupted production. But the shortage of key parts has grown more acute as the company struggles to resume operations in Japan or find alternative sources for components.



Unfortunately, this necessary move comes at a bad time for Honda.The versatile Alliston plants assemble the Honda Civic (coupe, sedan and Si models), as well as the Acura ZDX, MDX and CSX.



On April 20, Honda launched the ninth generation of the Honda Civic in five different models. For the last 13 consecutive years, the Civic has been the best selling passenger vehicle in Canada.



Production on the 2012 Civic line began back in January in Alliston, and according to sources, 10,000 to 12,000 units should have been ready to ship by launch time.



However, between Canada and the US, some 30,000 to 35,000 Civics are sold in an average month.



For the 2012 model year, Honda will likely be facing greater competition from other Asian-based rivals – specifically the Toyota Corolla, the Hyundai Elantra and the Mazda 3.



Implications felt half a world away

What are the implications for Alliston, Simcoe, Ontario, Canada and even the rest of the world after the earthquake and tsunami in Japan last spring?



Honda Canada spokesperson Richard Jacobs said dealers will continue to receive Civics and other models, but the impact will vary in different regions depending on demand. Jacobs also said it remains unclear if Civic buyers will experience significant wait times for their new models.



“We’re not really sure yet what the extent of the impact will be and when and how much it will be,” he added.



Among other implications, Honda says it will now delay the launch of the new generation 2012 CR-V sport utility vehicle by at least a month. Honda will extend output of the 2011 model. CR-Vs are presently being built for the North American market in Ohio.



Production for this vehicle will shift to Alliston for 2012 – a testament to the value Honda places on the region’s capabilities.



Honda said it would continue to make decisions based on the status of the recovery in Japan and on the stream of parts. However, a parts shortage still remains a concern.



“Honda is making every effort to work toward a full recovery as quickly as possible,” Chenkin said. “We appreciate everyone’s understanding during these challenging times.”



Honda has managed the unprecedented parts supply issues that resulted from the devastating impact of the March 11 earthquake and tsunami in Japan with no layoffs at any of its 14 production plants in North America.



“We are particularly proud of the efforts of our manufacturing team in Alliston,” said Chenkin, “and we applaud them for the steps they have taken to keep our associates working together as a team during this difficult period... We still have challenges to overcome, but once we have normalized operations we will owe them a great debt of thanks.”



Giving back

In recent weeks, with input from associates and HCM management, some employees have even been working offsite, helping out organizations in the community.



Organizations that have benefited from these “volunteer” initiatives include the Alliston and District Humane Society, the Alliston Good Shepherd Food Bank and the Barrie Food Bank.



At the human society, Honda employees have been building an outdoor shelter, cleaning and helping out with the animals. At the Alliston food bank, they’ve been prepping and painting rooms and offices and are on standby for additional work. In Barrie, they’ve been helping move all stored food from the old fire hall to the Food Bank’s temporary location before the move to new centralized quarters on Anne Street – an enormous undertaking.



Lori Van Valkenburg, with Honda, said HCM also provided assistance at the Habitat for Humanity in Alliston.



“Every little bit helps – everyone,” she said. “It’s a winning situation for all involved, including the community and HCM associates. The advantages to everyone are practically immediate – and far reaching.”



As the supply of parts from Japan improves, production will ramp-up in August on a step-by-step, plant-by-plant and model-by-model basis, with production gradually returning to 100 per cent of the original plan in Honda plants across North America – including Alliston ¬– in September.



However, production of the new 2012 Civic line-up will continue at a reduced rate of approximately 50 per cent due to the limited supply of specific key components. Full production is expected to resume sometime in the fall.



Positive turnaround

“We are pleased to see a positive turnaround represented by this significant improvement in our production situation,” said Chenkin. “Throughout this crisis, Honda has been working hard to achieve a speedy recovery, while maintaining a focus on our longer-term plans for continued growth in sales and production in order to meet the growing needs of our customers.”



A review of sales figures for all models and brands sold in Canada in May, June and even July show expected reductions in most models sold. However, the figures may also be a little misleading and the downturn may not all be directed to recent cataclysmic events. There were significant declines in sales pretty much across the board.



A few days ago, the parent company in Japan, Honda Motor Co., Ltd. reported an 88 per cent plunge in first-quarter profits after the earthquake and subsequent tsunami. An overall net profit of $481 million was announced. However, in a sign that conditions are improving, Honda raised its full-year earnings forecast by 35 per cent.



Given the constraints the company had to work through during the reporting period, the numbers are better than expected, analysts said. "I think Honda deserves some credit for the first quarter, in which some expected the firm to post losses," said Naoki Fuiwara, a fund manager at Shinkin Asset Management with head offices in Tokyo, Japan.



Source;

http://www.simcoe.com/news/article/1052194--honda-gives-back

Honda gives back

by David Taylor of www.simcoe.com



ALLISTON - When the sirens started their relentless wail on March 11, 2011 along the eastern seaboard of Japan, who could have imagined that a warning signal might also be resonating in a community in Central Ontario 10,000 kilometres away?



Ever since a massive earthquake rocked Japan almost five months ago, the automobile industry has been adjusting production levels. And its effects have been felt here.



While the world watched as Japan suffered and fought to rebuild, the question became: How would it affect the Simcoe region and the close-knit community of Alliston where Honda operates two sprawling production facilities, employing more than 4,000 people?



The Honda of Canada Manufacturing (HCM) facility in Alliston is one of the assembly operations directly affected by parts shortages.



The vast majority of Honda’s parts and materials are sourced here in North America, but Japan is still a critical source.



“A few critical parts continue to be supplied from Japan,” said Honda Canada executive vice president Jerry Chenkin at Honda Canada’s new, eco-driven headquarters in Markham. “At this time, many of Honda’s Japan-based parts suppliers have resumed production and most are functioning at 50 per cent or better capacity.”



Chenkin said Honda is working diligently and closely with the few suppliers that have yet to resume production to re-establish their operations, while also evaluating additional sources for some parts in the supply chain.



However, the situation changes constantly, a fact borne out by twice-a-day conference calls with the worldwide corporate head office and parts facilities in Japan, he added.



HCM in Alliston and other plants around the world have been forced to cut back operations, limiting overall production.



Following the tsunami, workers on the production lines reported for duty and worked on the line for half their normal shift. The balance of their hours was not been cut, though. They performed other work around the plant on a first come, first serve basis. And, during most non-production periods, HCM employees have the option to take time off without pay, cover the time off with vacation, or report to work for non-production activities that might include cleaning and maintenance, additional training, and involvement in a wide variety of projects.



Honda is doing all that it can to insulate their local workers from the effects of the disaster many time zones away.



“Honda remains focused on minimizing the impact to associates and their families, and plans no layoffs at any of its North American facilities,” Chenkin said.



Honda started reducing production at various North American plants at the end of March since their supply chain system, like most in the industry, allows for between 30 and 40 days of uninterrupted production. But the shortage of key parts has grown more acute as the company struggles to resume operations in Japan or find alternative sources for components.



Unfortunately, this necessary move comes at a bad time for Honda.The versatile Alliston plants assemble the Honda Civic (coupe, sedan and Si models), as well as the Acura ZDX, MDX and CSX.



On April 20, Honda launched the ninth generation of the Honda Civic in five different models. For the last 13 consecutive years, the Civic has been the best selling passenger vehicle in Canada.



Production on the 2012 Civic line began back in January in Alliston, and according to sources, 10,000 to 12,000 units should have been ready to ship by launch time.



However, between Canada and the US, some 30,000 to 35,000 Civics are sold in an average month.



For the 2012 model year, Honda will likely be facing greater competition from other Asian-based rivals – specifically the Toyota Corolla, the Hyundai Elantra and the Mazda 3.



Implications felt half a world away

What are the implications for Alliston, Simcoe, Ontario, Canada and even the rest of the world after the earthquake and tsunami in Japan last spring?



Honda Canada spokesperson Richard Jacobs said dealers will continue to receive Civics and other models, but the impact will vary in different regions depending on demand. Jacobs also said it remains unclear if Civic buyers will experience significant wait times for their new models.



“We’re not really sure yet what the extent of the impact will be and when and how much it will be,” he added.



Among other implications, Honda says it will now delay the launch of the new generation 2012 CR-V sport utility vehicle by at least a month. Honda will extend output of the 2011 model. CR-Vs are presently being built for the North American market in Ohio.



Production for this vehicle will shift to Alliston for 2012 – a testament to the value Honda places on the region’s capabilities.



Honda said it would continue to make decisions based on the status of the recovery in Japan and on the stream of parts. However, a parts shortage still remains a concern.



“Honda is making every effort to work toward a full recovery as quickly as possible,” Chenkin said. “We appreciate everyone’s understanding during these challenging times.”



Honda has managed the unprecedented parts supply issues that resulted from the devastating impact of the March 11 earthquake and tsunami in Japan with no layoffs at any of its 14 production plants in North America.



“We are particularly proud of the efforts of our manufacturing team in Alliston,” said Chenkin, “and we applaud them for the steps they have taken to keep our associates working together as a team during this difficult period... We still have challenges to overcome, but once we have normalized operations we will owe them a great debt of thanks.”



Giving back

In recent weeks, with input from associates and HCM management, some employees have even been working offsite, helping out organizations in the community.



Organizations that have benefited from these “volunteer” initiatives include the Alliston and District Humane Society, the Alliston Good Shepherd Food Bank and the Barrie Food Bank.



At the human society, Honda employees have been building an outdoor shelter, cleaning and helping out with the animals. At the Alliston food bank, they’ve been prepping and painting rooms and offices and are on standby for additional work. In Barrie, they’ve been helping move all stored food from the old fire hall to the Food Bank’s temporary location before the move to new centralized quarters on Anne Street – an enormous undertaking.



Lori Van Valkenburg, with Honda, said HCM also provided assistance at the Habitat for Humanity in Alliston.



“Every little bit helps – everyone,” she said. “It’s a winning situation for all involved, including the community and HCM associates. The advantages to everyone are practically immediate – and far reaching.”



As the supply of parts from Japan improves, production will ramp-up in August on a step-by-step, plant-by-plant and model-by-model basis, with production gradually returning to 100 per cent of the original plan in Honda plants across North America – including Alliston ¬– in September.



However, production of the new 2012 Civic line-up will continue at a reduced rate of approximately 50 per cent due to the limited supply of specific key components. Full production is expected to resume sometime in the fall.



Positive turnaround

“We are pleased to see a positive turnaround represented by this significant improvement in our production situation,” said Chenkin. “Throughout this crisis, Honda has been working hard to achieve a speedy recovery, while maintaining a focus on our longer-term plans for continued growth in sales and production in order to meet the growing needs of our customers.”



A review of sales figures for all models and brands sold in Canada in May, June and even July show expected reductions in most models sold. However, the figures may also be a little misleading and the downturn may not all be directed to recent cataclysmic events. There were significant declines in sales pretty much across the board.



A few days ago, the parent company in Japan, Honda Motor Co., Ltd. reported an 88 per cent plunge in first-quarter profits after the earthquake and subsequent tsunami. An overall net profit of $481 million was announced. However, in a sign that conditions are improving, Honda raised its full-year earnings forecast by 35 per cent.



Given the constraints the company had to work through during the reporting period, the numbers are better than expected, analysts said. "I think Honda deserves some credit for the first quarter, in which some expected the firm to post losses," said Naoki Fuiwara, a fund manager at Shinkin Asset Management with head offices in Tokyo, Japan.



Source;

http://www.simcoe.com/news/article/1052194--honda-gives-back

Nissan, Honda Better Positioned Than Toyota After Japan Quake

Moody’s says that this month’s triple disaster of earthquake, tsunami, and nuclear crisis in Japan will not result in wholesale rating changes for Japanese automakers, but its aftermath will weaken the issuers’ operations and financial performance at least through the first half of fiscal-year 2011, ending next March.

Tadashi Usui, the lead author of the report and a Moody’s vice president in Tokyo, says, “To a large extent, the financial health of our rated Japanese automakers before the disaster determines their vulnerability: Toyota (TM) and Yamaha were less well positioned in their ratings and thus are more vulnerable, Nissan (NSANY.PK) and Honda (HMC) are better positioned, and Isuzu is in the middle of the pack.”

Usui adds, “For example, Toyota had been trying to recover after widespread product recalls in 2010; whereas, Nissan’s performance had been improving and was on review for possible upgrade.”

Usui says, “None of these companies have assembly plants that experienced lasting direct damage from the earthquake or tsunami.” He adds, “However, the indirect effects of power shortages and rolling-black outs, disruptions to supply chains, and staffing issues represent a more serious problem.”

A contributor to the report, Michael Mulvaney, a managing director for Moody’s in New York, adds adds, “Problems at geographically dispersed second- and third-tier suppliers may be severe, and for critical parts, the added costs of finding alternative sources of supply could shave 1% to 2% from automakers’ margins.”

Mulvaney says, “We expect Japanese automakers’ full-year revenues for the coming fiscal year to at best show low single-digit growth as overseas markets help to offset weakness in the domestic Japanese market in the first half of the year.”

In a separate report Moody’s sees no material threat tothe ratings of Europe-based automotive suppliers, which have limited direct exposure to the consequences of the disaster:

However, we believe that they will feel ripple effects in the global supply chain as original equipment manufacturers (OEMs) reduce output in Europe and North America. Although OEMs and suppliers worldwide are exploring alternatives to supply shortages caused in Japan, we believe it will take some time to realign the supply chain where necessary.

Once this has happened, we expect at least some of the lost production volumes to be recovered. We expect the disaster to negatively impact revenue and earnings, primarily in Q2 2011. In addition, halts in OEM production might impact working capital consumption. However, we estimate that the impact on the credit metrics of Europe-based automotive suppliers will only be temporary.

Source;
http://seekingalpha.com/article/261141-nissan-honda-better-positioned-than-toyota-after-japan-quake

Nissan, Honda Better Positioned Than Toyota After Japan Quake

Moody’s says that this month’s triple disaster of earthquake, tsunami, and nuclear crisis in Japan will not result in wholesale rating changes for Japanese automakers, but its aftermath will weaken the issuers’ operations and financial performance at least through the first half of fiscal-year 2011, ending next March.

Tadashi Usui, the lead author of the report and a Moody’s vice president in Tokyo, says, “To a large extent, the financial health of our rated Japanese automakers before the disaster determines their vulnerability: Toyota (TM) and Yamaha were less well positioned in their ratings and thus are more vulnerable, Nissan (NSANY.PK) and Honda (HMC) are better positioned, and Isuzu is in the middle of the pack.”

Usui adds, “For example, Toyota had been trying to recover after widespread product recalls in 2010; whereas, Nissan’s performance had been improving and was on review for possible upgrade.”

Usui says, “None of these companies have assembly plants that experienced lasting direct damage from the earthquake or tsunami.” He adds, “However, the indirect effects of power shortages and rolling-black outs, disruptions to supply chains, and staffing issues represent a more serious problem.”

A contributor to the report, Michael Mulvaney, a managing director for Moody’s in New York, adds adds, “Problems at geographically dispersed second- and third-tier suppliers may be severe, and for critical parts, the added costs of finding alternative sources of supply could shave 1% to 2% from automakers’ margins.”

Mulvaney says, “We expect Japanese automakers’ full-year revenues for the coming fiscal year to at best show low single-digit growth as overseas markets help to offset weakness in the domestic Japanese market in the first half of the year.”

In a separate report Moody’s sees no material threat tothe ratings of Europe-based automotive suppliers, which have limited direct exposure to the consequences of the disaster:

However, we believe that they will feel ripple effects in the global supply chain as original equipment manufacturers (OEMs) reduce output in Europe and North America. Although OEMs and suppliers worldwide are exploring alternatives to supply shortages caused in Japan, we believe it will take some time to realign the supply chain where necessary.

Once this has happened, we expect at least some of the lost production volumes to be recovered. We expect the disaster to negatively impact revenue and earnings, primarily in Q2 2011. In addition, halts in OEM production might impact working capital consumption. However, we estimate that the impact on the credit metrics of Europe-based automotive suppliers will only be temporary.

Source;
http://seekingalpha.com/article/261141-nissan-honda-better-positioned-than-toyota-after-japan-quake

Honda Suspends Dealer Orders on Japan-Built Cars

After Mazda announced last week that it would halt orders on U.S. deliveries of all Japan-made cars, Honda has now decided to follow a similar action. Informing dealers that they can no longer order Japan-build cars, retailers will be forced to move only what is on their lot until the Japanese supply chain can be mended.

Vehicles affected by the order include hybrid models like the CR-Z, Insight and Civic Hybrid, as well as some CR-V models (many of which are also build in North America). The Acura luxury division has also been affected, with the TSX and RL also made in Japan.

With current dealer inventories, this shouldn’t pose a product shortage unless the delay is lengthy.

Other Japanese automakers, including Mitsubishi, Nissan and Toyota, have yet to announce any such supply chain issues.

Source;

http://www.autoguide.com/auto-news/2011/03/honda-suspends-dealer-orders-on-japan-built-cars.html

Honda Suspends Dealer Orders on Japan-Built Cars

After Mazda announced last week that it would halt orders on U.S. deliveries of all Japan-made cars, Honda has now decided to follow a similar action. Informing dealers that they can no longer order Japan-build cars, retailers will be forced to move only what is on their lot until the Japanese supply chain can be mended.

Vehicles affected by the order include hybrid models like the CR-Z, Insight and Civic Hybrid, as well as some CR-V models (many of which are also build in North America). The Acura luxury division has also been affected, with the TSX and RL also made in Japan.

With current dealer inventories, this shouldn’t pose a product shortage unless the delay is lengthy.

Other Japanese automakers, including Mitsubishi, Nissan and Toyota, have yet to announce any such supply chain issues.

Source;

http://www.autoguide.com/auto-news/2011/03/honda-suspends-dealer-orders-on-japan-built-cars.html

Honda reveals earthquake aid plans

Honda's relief efforts to deal with the aftermath of the earthquake and tsunami disaster announced

After suffering damage to some factories including a collapsed wall at its R&D facility in Tochigi where one employee was killed Honda has revealed that many of its plants in Japan will remain closed all this week.

As well as leading to the death of a 43 year old male employee, the damage at Tochigi is reported to have caused injuries to 30 other Honda workers. Now Honda has revealed its plans to cope with the aftermath of the earthquake and tsunami.

The firm's full release is below:

TOKYO, Japan, March 14, 2011 - Honda would like to express its deepest sympathy and condolences to the victims of The 2011 Off the Pacific Coast of Tohoku Earthquake in northeastern Japan and our sincere hopes for the earliest possible relief and recovery of the affected areas.

Considering the current situation of the nationwide recovery efforts in Japan, Honda has decided the following:

-As of March 14, all production activities are suspended at the following Honda plants: Sayama Plant at Saitama Factory (Sayama, Saitama), Ogawa Plant (Ogawa-machi, Hiki-gun Saitama), Tochigi Factory (Moka, Tochigi), Hamamatsu Factory (Hamamatsu, Shizuoka) and Suzuka Factory (Suzuka, Mie).

-From March 15 through 20, Honda will suspend all production activities at its plants listed above as well as at Kumamoto Factory (Ozu-machi, Kikuchi-gun, Kumamoto).

-From March 14 through 20, Honda will suspend regular operations at all Honda facilities in the Tochigi area, where damage was more serious, (including Tochigi Factory, Honda R&D Co., Ltd.

-Automobile R&D Center (Tochigi) , Honda Engineering Co., Ltd., etc.), and focus on the recovery of each operation. Honda associates will not come to work during this time.

With the hope to contribute to the earliest possible relief and recovery of affected areas, Honda will provide the following aid:

-300 million yen toward the relief and recovery effort.

-A total of 1,000 generators (gasoline-powered and home-use gas canister-powered), along with 5,000 gas canisters. Honda also will dispatch its staff to explain how to use the donated generators.

Honda will cooperate to the electricity conservation efforts and the rolling blackout, prioritizing the relief and recovery of affected areas.

Honda decided the following regarding its recruiting activities so that victims of the earthquake can focus on recovery.

Prospective associates, who are scheduled to join the company in April, can choose to delay their first day of work by up to two months if they or their families are affected by the earthquake.

For those who have applied for next year's recruiting process starting in April of this year (associates who would join the company in April 2012) from the affected areas (six prefectures in Tohoku areas and Ibaraki prefecture), Honda will ensure that the testing/interviewing of those applicants will be conducted in June or later. More details will be posted on the recruiting section of the Honda website in April.

Source;

http://www.visordown.com/motorcycle-news--general-news/honda-reveals-earthquake-aid-plans/17489.html

Honda reveals earthquake aid plans

Honda's relief efforts to deal with the aftermath of the earthquake and tsunami disaster announced

After suffering damage to some factories including a collapsed wall at its R&D facility in Tochigi where one employee was killed Honda has revealed that many of its plants in Japan will remain closed all this week.

As well as leading to the death of a 43 year old male employee, the damage at Tochigi is reported to have caused injuries to 30 other Honda workers. Now Honda has revealed its plans to cope with the aftermath of the earthquake and tsunami.

The firm's full release is below:

TOKYO, Japan, March 14, 2011 - Honda would like to express its deepest sympathy and condolences to the victims of The 2011 Off the Pacific Coast of Tohoku Earthquake in northeastern Japan and our sincere hopes for the earliest possible relief and recovery of the affected areas.

Considering the current situation of the nationwide recovery efforts in Japan, Honda has decided the following:

-As of March 14, all production activities are suspended at the following Honda plants: Sayama Plant at Saitama Factory (Sayama, Saitama), Ogawa Plant (Ogawa-machi, Hiki-gun Saitama), Tochigi Factory (Moka, Tochigi), Hamamatsu Factory (Hamamatsu, Shizuoka) and Suzuka Factory (Suzuka, Mie).

-From March 15 through 20, Honda will suspend all production activities at its plants listed above as well as at Kumamoto Factory (Ozu-machi, Kikuchi-gun, Kumamoto).

-From March 14 through 20, Honda will suspend regular operations at all Honda facilities in the Tochigi area, where damage was more serious, (including Tochigi Factory, Honda R&D Co., Ltd.

-Automobile R&D Center (Tochigi) , Honda Engineering Co., Ltd., etc.), and focus on the recovery of each operation. Honda associates will not come to work during this time.

With the hope to contribute to the earliest possible relief and recovery of affected areas, Honda will provide the following aid:

-300 million yen toward the relief and recovery effort.

-A total of 1,000 generators (gasoline-powered and home-use gas canister-powered), along with 5,000 gas canisters. Honda also will dispatch its staff to explain how to use the donated generators.

Honda will cooperate to the electricity conservation efforts and the rolling blackout, prioritizing the relief and recovery of affected areas.

Honda decided the following regarding its recruiting activities so that victims of the earthquake can focus on recovery.

Prospective associates, who are scheduled to join the company in April, can choose to delay their first day of work by up to two months if they or their families are affected by the earthquake.

For those who have applied for next year's recruiting process starting in April of this year (associates who would join the company in April 2012) from the affected areas (six prefectures in Tohoku areas and Ibaraki prefecture), Honda will ensure that the testing/interviewing of those applicants will be conducted in June or later. More details will be posted on the recruiting section of the Honda website in April.

Source;

http://www.visordown.com/motorcycle-news--general-news/honda-reveals-earthquake-aid-plans/17489.html

Japan’s carmakers halt domestic operations

By John Reed, Motor Industry Correspondent
Published: March 14 2011 13:00 Last updated: March 14 2011 13:00
Japan’s four biggest carmakers have said they are suspending production at their domestic plants through to at least Wednesday to cope with the after-effects of Friday’s earthquake and tsunami.

Honda, Japan’s second-largest carmaker, said on Monday that it was halting domestic production for a week and that damage to its suppliers’ plants might disrupt its UK production.

The announcement was an early sign of the disaster’s potential knock-on effect on the global supply chain in one of the world’s largest industries. Toyota, Nissan, and Mitsubishi Motors also extended shutdowns of their plants in order to assess and deal with damage from the quake.

Honda on Monday said that it had shut down its plants to check safety, power supply and infrastructure issues, along with the state of its local suppliers.

Honda said that it had 113 suppliers around the area in north-east Japan where the main tremors from the earthquake were felt. The carmaker said that it had been in touch with 44 of them, but was still trying to contact the remaining 69.

A UK spokesman for Honda said there were “potential supply issues” at its car plant in Swindon, England, where it makes its CR-V sport utility vehicle, its Jazz small car, and its Civic mid-size model.

“There will be a knock-on effect for car production in the UK, but we don’t yet know what it is,” he said.

Honda said that it had established emergency co-ordination centres in Swindon and at its plant in Tochigi in Japan in order to liaise on business issues concerning its supply of components and the well-being of its employees.

Toyota, Japan’s and the global car industry’s biggest producer, on Monday said that a shutdown already planned for Monday at all of its Japanese plants – including those of its Hino and Daihatsu subsidiaries – would be extended through to Wednesday.

The company makes some of its most popular models – including the bulk of its Prius hybrid model and Lexus luxury marque’s cars – in Japan.

Toyota said that the current three-day halt to production would not immediately affect its overseas operations. “The current production stop is for three days”, said a Toyota spokesman based in Brussels. “As such this doesn’t have an impact outside Japan, but we need to assess further.”

Nissan, Japan’s third-largest carmaker, said that it would halt operations at its Oppama, Kyushu, Shatai, and Yokahama plants south of Tokyo until Wednesday and at its Tochigi and Iwaki plants north of Tokyo until Friday.

The company also said that it would do its utmost to support “restoration activities” in Japan, including by conserving electricity usage in all of its activities.

Mitsubishi said that it was suspending plant operations on Monday and Tuesday to check safety at its suppliers. The producer’s main production hubs are located in Japan’s Aichi, Gifu, and Okayama prefectures, and were not affected by the earthquake.

However, it said that some of its suppliers had reported damage.

Japan’s car industry is one of the world’s largest. North-eastern Japan has become a major car-production centre in recent years, with Toyota, Honda, Nissan and operating plants there.

Most global carmakers, including Japan’s, produce and source parts for most of their cars in the regions where they build them.

However, Japan’s producers in particular are known for producing some of their models destined for export locally in order to preserve jobs and expertise at home in the face of declining domestic demand for cars.

Source;
http://www.ft.com/cms/s/0/8d5f631e-4e2a-11e0-a9fa-00144feab49a.html#axzz1Ga6cJOuQ

Japan’s carmakers halt domestic operations

By John Reed, Motor Industry Correspondent
Published: March 14 2011 13:00 Last updated: March 14 2011 13:00
Japan’s four biggest carmakers have said they are suspending production at their domestic plants through to at least Wednesday to cope with the after-effects of Friday’s earthquake and tsunami.

Honda, Japan’s second-largest carmaker, said on Monday that it was halting domestic production for a week and that damage to its suppliers’ plants might disrupt its UK production.

The announcement was an early sign of the disaster’s potential knock-on effect on the global supply chain in one of the world’s largest industries. Toyota, Nissan, and Mitsubishi Motors also extended shutdowns of their plants in order to assess and deal with damage from the quake.

Honda on Monday said that it had shut down its plants to check safety, power supply and infrastructure issues, along with the state of its local suppliers.

Honda said that it had 113 suppliers around the area in north-east Japan where the main tremors from the earthquake were felt. The carmaker said that it had been in touch with 44 of them, but was still trying to contact the remaining 69.

A UK spokesman for Honda said there were “potential supply issues” at its car plant in Swindon, England, where it makes its CR-V sport utility vehicle, its Jazz small car, and its Civic mid-size model.

“There will be a knock-on effect for car production in the UK, but we don’t yet know what it is,” he said.

Honda said that it had established emergency co-ordination centres in Swindon and at its plant in Tochigi in Japan in order to liaise on business issues concerning its supply of components and the well-being of its employees.

Toyota, Japan’s and the global car industry’s biggest producer, on Monday said that a shutdown already planned for Monday at all of its Japanese plants – including those of its Hino and Daihatsu subsidiaries – would be extended through to Wednesday.

The company makes some of its most popular models – including the bulk of its Prius hybrid model and Lexus luxury marque’s cars – in Japan.

Toyota said that the current three-day halt to production would not immediately affect its overseas operations. “The current production stop is for three days”, said a Toyota spokesman based in Brussels. “As such this doesn’t have an impact outside Japan, but we need to assess further.”

Nissan, Japan’s third-largest carmaker, said that it would halt operations at its Oppama, Kyushu, Shatai, and Yokahama plants south of Tokyo until Wednesday and at its Tochigi and Iwaki plants north of Tokyo until Friday.

The company also said that it would do its utmost to support “restoration activities” in Japan, including by conserving electricity usage in all of its activities.

Mitsubishi said that it was suspending plant operations on Monday and Tuesday to check safety at its suppliers. The producer’s main production hubs are located in Japan’s Aichi, Gifu, and Okayama prefectures, and were not affected by the earthquake.

However, it said that some of its suppliers had reported damage.

Japan’s car industry is one of the world’s largest. North-eastern Japan has become a major car-production centre in recent years, with Toyota, Honda, Nissan and operating plants there.

Most global carmakers, including Japan’s, produce and source parts for most of their cars in the regions where they build them.

However, Japan’s producers in particular are known for producing some of their models destined for export locally in order to preserve jobs and expertise at home in the face of declining domestic demand for cars.

Source;
http://www.ft.com/cms/s/0/8d5f631e-4e2a-11e0-a9fa-00144feab49a.html#axzz1Ga6cJOuQ