Parts shortages triggered by the earthquake and tsunami in Japan could reduce global automobile production by up to 30 percent, research firm IHS Automotive told Bloomberg. Or at least that’s what Bloomberg heard. Read More >

Days after the earthquake an tsunami had devastated large parts of the north-east Tohoku area of Japan, Toyota was still cut off from its factories in the hardest hit Miyagi prefecture. A convoy of six water tankers, two fuel tankers and nine cargo trucks braved impassable or closed roads and reached the area on Sunday after the quake. A second convoy arrived on Monday.

By now, Toyota has an out-and-out private army in the region, helping factories and the surrounding communities. Read More >

Beginning on Monday, March 28,  Toyota will restart production of three hybrid cars “which are in high demand” as Toyota spokesman Paul Nolasco said.

Both lines of Toyota’s Tsutsumi plant in Toyota City will begin full Prius production on Monday. These used to be mixed production lines. A few cars were left incomplete when Toyota stopped all production in all of Japan after the quake. Those cars will be finished. Then, both lines will make exclusively Prii (as in the now official Toyota Prius plural.) Read More >

Our daily run-down of delays, shut-downs, shortages, and postponements, triggered by the March 11 tsunami in Japan.

• Toyota informed its U.S. dealers and workers to expect production slowdowns due to parts shortages. “Today, we communicated to team members, associates and dealers here that some production interruptions in North America are likely. It’s too early to predict location or duration,” Toyota said in a statement. Most, but not all of the parts for vehicles built in North America are sourced here.  Wall Street Journal
• Toyota expects to idle its pickup truck assembly plant south of San Antonio. “We are informing our team members that, with the situation over in Japan, it is likely that we will see some nonproduction days coming,” Craig Mullenbach, spokesman for Toyota’s San Antonio plant, said. Mullenbach added that parts needed to build the full-sized Tundra and mid-sized Tacoma pickup truck in San Antonio are running out. Reuters
• Honda will suspend car production at its Japanese factories until at least April 3. Honda will temporarily transfer some functions such as car development and procurement out of its badly damaged R&D center  in Tochigi. Reuters

Read More >

Japan is, after China, the world’s second largest car producer. In the first ten days after the March 11^th 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 >

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 >

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 >

“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 >

It is one of those strange twists of fate that Toyota’s arch-nemesis, GM, would be one of the first overseas automakers to experience shutdowns caused by a lack of supplies from tsunami-devastated Japan. Read More >

Apart from donating 1,000 portable generators, Honda delivers something really useful: Precise information about road conditions in the disaster areas. Together with Google Maps and Honda’s traffic data suppliers Internavi and Smartloop, Honda provides real time road conditions for the disaster stricken areas. Read More >