Our daily run-down of delays, shut-downs, shortages, and postponements.
Chrysler is coming down hard on some of their Jeep dealers. The Monroe Dodge Superstore in Monroe, MI, just down the road from Toledo, wanted to celebrate the 70th anniversary of the Jeep. The first Willys-Overland Jeep was built 1941 at their plant in Toledo. The good folks at the Monroe Dodge Superstore thought hard about a good catchphrase. Then, the lightbulb went off. Presto, 600 T-shirts were printed, emblazoned with “Imported from Toledo.” They immediately heard from Chrysler. Not in a good way. (Read More…)
The international auto manufacturers association OICA finally got around to publishing its 2010 production statistics by country. Officially still provisional, but don’t expect material change. Publication of the all important by manufacturer part will probably take well into summer, but you, esteemed TTAC reader, are well ahead of the game.
Before we delve into the numbers, some kudos: (Read More…)
Japan is, after China, the world’s second largest car producer. In the first ten days after the March 11th earthquake and tsunami, the Japanese auto industry lost approximately 65 percent of its capacity. That is 338,000 units. Toyota alone has lost production of about 140,000 vehicles since March 14, says AP [via MSNBC]. What will happen next? Will it affect us, and how?
Amongst banks and brokers, staid Morgan Stanley is one of the respected ones. Morgan Stanley always had a presence in Asia and manages many Asian funds. Japan’s Mitsubishi bank owns 21 percent. Morgan Stanley has no interest in talking Japan down. However, in a 34 page research note, sent out today, titled “Japanese Earthquake: Global Supply Chain Implications”, Morgan Stanley paints a dark picture: “A prolonged disruption of Japanese component supply could have a significant impact on 2011 auto production and profitability.” Not just in Japan, the world over. It is likely to depress sales: “ The impact on US SAAR could be severe in May.”
Instead of editorializing, let’s just give you the salient parts. You may want to have a stiff drink first. And your broker’s phone number nearby. (Read More…)
After a long weekend (Monday was Spring Equinox), Japan came back to work today. Most of the Japanese auto industry did not.
Japan’s largest automaker Toyota, and Japan’s third largest, Honda, won’t be making any cars this week. Japan’s auto production is paralyzed. (Read More…)
For days, I have been trying to get a clearer picture of what is really going on outside of the largely intact gates of the major Japanese carmakers. Nobody is talking. Most keep mum because they don’t know. Some don’t talk because they don’t want to.
Now there is a rare glimpse into the matter. It has been written by Kevin Krolicki with the help of two colleagues at Reuters. Kevin is the Detroit bureau chief of Reuters. He writes about cars a lot. Comes with the territory. Kevin and I share a common affliction: A Japanese wife. A week ago, Kevin found himself going against the stream of expats that were mobbing the planes out of Japan.
Two days after the quake, Kevin went from Detroit to Tokyo to help the team of Reuters reporters in Japan. (Read More…)
The Autochannel in the UK is talking about a long wheelbase Audi A8 with built-in LTE 4G connectivity. That shouldn’t be a big feat, it’s new technology, but it can be bought off the shelf. The Autochannel pistonheads however are deeply in awe: “LTE technology offers data transfer speeds of up to 100Mbps, which is similar to a fixed-line broadband connection. This means passengers in the prototype can use the LTE broadband connection to stream music, high-definition videos and other data on up to six computer or mobile phone devices with ease.” Sure, and Ferdinand Piech invented the Internet. (Read More…)
New twist in GM’s hunt for the elusive carpart: Opel’s Eisenach plant will resume normal operations tomorrow, Tuesday. It was reported to suffer a serious shortage of Japanese parts. (Read More…)
In what “could herald a new era in auto insurance” (if the Wall Street Journal is right), Progressive “introduced a new type of car insurance that offers a discount to policyholders based on real-time information about how and when they drive.”
And how will Progressive obtain all that info? (Read More…)
There are gallant, yet disturbing news coming from Japan’s automaker front. Japanese automakers unite to cope with the disaster. “Automakers have set up a joint headquarters for support measures and are sharing damage reports and other information,” reports The Nikkei [sub]. “They have a plan that aims to provide more effective support by dividing their forces by region and building teams on the fly. Staff from, say, Toyota may end up lending a hand to a parts maker that does business with, say, Nissan.” According to the Nikkei, Japan’s automakers also have come to a “silent understanding” to not to compete for who might be first to restart production. What is causing the sudden unity amongst former bitter rivals? (Read More…)
The French government has its hands full pounding Gadaffi’s tanks and artillery pieces into pulp. At the same time, the French government decided not to destabilize carmaker Renault. French Industry Minister Eric Besson said the latter part when he was asked whether he’s calling for Carlos Ghosn’s head after the espionage scandal had turned into a farce.
“As industry minister, I hear the voice of the people asking for punishment, but the industry minister’s greater concern at this time is not to destabilize Renault any further,” Besson told RFI radio ( via Reuters) in an interview. (Read More…)
“After Fukushima, I am not sure how any politician in any modestly democratic republic is going to sell a new nuclear power plant to any general population.”
“Would you like the job of trying to sell a new nuclear plant to your electorate?”
“There is one terrible casualty in all of this: The electric car. When they make part 2 of Who Killed the Electric Car? the answer is going to be plain and clear: Fukushima killed the electric car.”
From the LogicalOptimizer blog, just one of many that currently say the same. (Read More…)
On Monday, Nissan plans to reopen six factories in Japan. They will make badly needed replacement parts for the domestic market and parts needed for its overseas plants, The Nikkei [sub] says. On Thursday this week, Nissan will start assembling vehicles at five of the six factories from Thursday using the parts procured by then.
Nissan’s problem plant is an engine plant in Iwaki city in Fukushima, close to the crippled nuclear power plant. Nissan is “trying to restore operations” there. The plant makes V6 engines. Bringing it on-line could take longer.
In the U.S., Nissan battles another enemy: Fear. (Read More…)
General Motors Co. has halted all nonessential spending and travel companywide while it gets a better handle on the potential impact of Japan’s crisis on the company, the Wall Street Journal reports.
When the CEO of a large multinational sends out a companywide memo to hold off on any expenses that aren’t critical, things are dire. GM CEO Dan Akerson did just that, the Wall Street Journal says. (Read More…)
This driver had the bad luck of being on a coastal road in Japan when the tsunami hit. He had the good luck to make it through alive. And he had the amazing luck to have a video camera going while it happened, capturing the tsunami crashing into road and car. (Read More…)
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