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Like every car owner knows, it only takes one missing part to put a car in a crash and the car contains on average from 20 000 to 30 000 pieces, many even in cars made in America come from Japan.
As the stricken Japanese automakers and parts suppliers are struggling to resume operations, the global automotive industry hasn t completely stalled, but it suffers losses in the production of hundreds of thousands of vehicles, amounting several billion dollars.
We have already seen the production at GM Ford Renault, Peugeot and upset, said Christopher Richter -Based Tokyo auto analyst for the Hong Kong investment group CLSA -Based of The auto supply chain is like a house of cards; and there will be some surprises arise as a sudden shortage across the board.
Yet despite the enormous challenges facing the industry, analysts say that automakers like Toyota and Honda will be Nissan able to recover in the coming year.
You will see plants very busy working all the changes they can manage to try to get back on track later in the year, said Richter.
While companies say they are focusing on simple recovery, analysts point out that companies restart production work of the plant so quickly after a major disaster as evidence of a healthy bounce back.
Toyota, the largest automaker in the world, had already tried to recover from product recalls worldwide last year, when the 0 9 earthquake and tsunami struck Japan March 11 knocking out power for large parts of the country alone lost production of at least 200,000 cars this month in Japan accordingly.
On nearly 70 models, only three to two factories remained in production 16 other plants remain online, including the popular Prius hybrid and two other of its Lexus luxury brand The majority of Toyota and Lexus assembly factories will not be operational before mid April due to the fuel shortage, disruption of supply and blackouts line.
Even cars that are made, production is running a daily, almost basic car by car, due to parts shortages and power line problems, said Paul Nolasco a spokesman for the office Toyota in Tokyo.
We announced our work program next week and beyond, no one can yet say what will happen, Nolasco said.
Despite production problems, Toyota said that, given the persistent extreme difficulties faced by many victims of disasters, it is inappropriate to talk about the size of financial losses it has incurred.
Nissan, Japan second automaker, said its loss of production to about 55 000 vehicles.
Nissan has an engine plant in Iwaki City, which is in the area of the earthquake and has suffered very serious damage, said Mitsuru Yonezawa Nissan Global Headquarters in Yokohama, just south of Tokyo It Sá little to inland from the coast, so it didn t affected by the tsunami and there were no injuries, we're aiming to have the plant back running at almost full capacity by the end of April.
So far, Nissan's factories remained open as they were able to use the auto parts they already had in their inventories, however, M. Yonezawa said the company is closing all production from April 4 to 8 take stock and assess the Nissan location bespoke his work of national automotive assembly should begin again in mid-April to reduced production levels.
For now, our main objective is to recover from what happened, it is not practical to think of doing for lost production, said M. Yonezawa, who concedes that the current power shortage threat also remains a challenge.
Both Nissan and Toyota say they have so far managed to avoid major disruptions in their production facilities abroad, although Toyota has asked its North American dealers to limit replacement part orders to those who are absolutely necessary because of the impending shortage of parts from Japan.
Honda R D center in Tochigi Prefecture were on the outskirts of the most affected by the earthquake area, and one worker was killed and 16 injured by walls and ceilings that collapsed.
The company has announced significant reductions in its production through its North American assembly lines, with factories set to reduce the production of more than half, but nobody says how long it can continue.
Of the big three, though, Honda could suffer the least in the long term.
He estimates a loss of 46,000 vehicles because of the disaster that followed and stopped four weeks down the plants, but Honda said it expects all of its production plants in Japan to run April 11.
The problems companies face are exacerbated by the celebrated just in time production system, which keeps the minimum levels of parts of wiper blades to complex control micro units in stock in factories and only aims replenish the parties to the last possible moment Toyota developed by, and now widely adopted if it has become global best practices in many industries, the system is extremely effective until a problem arises with supplies.
Despite the criticisms that have been made in respect of this process, it seems unlikely to change.
Quite simply, if you are just in time, you are not competitive, Richter You can not run a system that is 19 on 20 ineffective, just because it won t let you down in a year you have a major natural disaster.
Richter believes that the reason why the current production system of globalization will remain basically unchanged.
The reason why there is a global supply chain is because it is the best way to make cars, says Richter No company can try to move away from what will make them less competitive.
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