UPDATE: Honda Pres: Yen Remains Big Concern As Seeks To Restore Ops

By Yoshio Takahashi
Of DOW JONES NEWSWIRES

TOKYO (Dow Jones)--Honda Motor Co.'s (7267.TO) chief executive voiced concern about the yen's strength Thursday, noting its current position could offset the Japanese auto maker's attempt to recover after the March 11 earthquake and tsunami.

"My feeling is that (the business) situation is tough, especially foreign exchange. I hope that the (unfavorable yen level) will change," Takanobu Ito, president and chief executive of the car maker, said at a press conference for the launch of the auto maker's Fit Shuttle hybrid wagon.

Earlier this week Honda said that it expects its net profit for the current fiscal year through March to drop 63% on the back of the yen's strength and reduced output resulting from a parts shortage in the wake of the disaster.

Honda expects a scarcity of some key parts from suppliers stricken by the disaster to reduce its global sales by 6% to 3.3 million vehicles this fiscal year.

In a bid to push sales during harsh times, Honda rolled out the Fit Shuttle hybrid wagon in Japan three month behind the initial schedule due to the earthquake.

The new hybrid with a starting price of Y1.81 million was developed based on its Fit company hybrid and can run 30 kilometers on a liter of gasoline.

This price is lower than the lowest price of the Prius Alpha minivan hybrid launched last month by Toyota of Y2.35 million.

Toyota's new hybrid was also introduced in Japan with a delay due to the disaster.

Honda said it has received orders for 7,000 Fit Shuttle hybrids, well above the model's monthly sales target of 4,000 units.

But Toyota sees much stronger demand for its newest hybrid, saying Tuesday that it has received 52,000 orders in Japan for the new minivan version of the Prius hybrid one month after its launch. The number far outstrips the company's 3,000 monthly sales target for the Prius Alpha.

Source;
http://online.wsj.com/article/BT-CO-20110616-702125.html

Post-quake Honda says it now has lots of Fits, Insights for dealers

Honda offered a terrific sign this week that it is finally getting back on its feet in the U.S. after the March earthquake and tsunami that drastically slashed production.

It is now telling dealers that they can resume ordering two of the most in-demand models -- the small Honda Fit and the hybrid Insight, Automotive News reports.

The two models, both made in Japan, have been among the most in-demand as gas rose to an average of nearly $4 a gallon. The Fit is the smallest car that Honda sells in the U.S. and comes recommended by Consumer Reports. The Insight is the brand's underrated hybrid, a competitor to Toyota's Prius.

"Honda's manufacturing operations in Japan are returning to nearly normalized levels by the end of summer," said John Mendel, executive vice president of Honda's U.S. sales operation in a memo to Honda dealers. Adding back Fit and Insight "represents a major improvement from the recovery timetable we provided you last month."

Honda stopped orders on the models after the earthquake. Honda didn't incur major damange to its factories in Japan, but it has been badly impacted by the shortage of parts that has hampered other automakers, including those in the U.S.

In fact, Mendel is downright bullish. Noting that other models like the Pilot SUV, Odyssey minivan and CR-V small crossover are coming back to normal production levels, he implored dealers, "it is imperative that you keep your foot on the sales pedal."

It won't be easy: Sales fell 22% in May compared with a year ago, the News notes.

Source;
http://content.usatoday.com/communities/driveon/post/2011/06/post-quake-honda-says-now-lots-of-fits-insights-for-dealers/1

WSJ: Honda To Resume Full North American Auto Production In August

By Mike Ramsey
Of THE WALL STREET JOURNAL

DAYTON, Ohio (Dow Jones)--Honda Motor Co. (HMC, 7267.TO) will return its North American auto production to normal levels for all but one vehicle in August, faster than the company expected, the company said in a statement Thursday.

Honda has been running its plants at around 50% of their normal volume since April because of limited supplies of critical parts. Honda, Toyota Motor Corp. (TM, 7203.TO) and Nissan Motor Co. (NSANY, 7201.TO) have all limited their production this year because of the massive March 11 earthquake that damaged dozens of parts suppliers, particularly electronics makers.

Unfortunately for Honda, the lone car built in North America that won't return to full production in August is the redesigned Civic. Production of the vehicle will remain at 50% of projected volume because of limited supplies of parts and return to normal sometime in the fall, the company said. The Civic is one of Honda's best-selling models and the redesigned model was expected to help drive sales this year, reversing a market-share decline.

"The light at the end of the tunnel is glowing brighter for us, represented by this significant improvement in our production situation," said John Mendel, executive vice president of American Honda Motor Co., in the statement.

Honda, with more production in North America than Toyota or Nissan, has been the slowest to return its plants to higher volume. Nissan's U.S. production missed only a few days and Toyota is ramping back up most of its plants in North America next month.

Low inventories of key vehicles, combined with few incentives from Honda and maybe the perception that cars aren't available, are expected to drag down Honda's sales results in May. TrueCar.com, a consumer research and vehicle pricing website, predicts Honda's May sales will decline 26%, the most of any major manufacturer.

Honda's Mendel last week sent a letter to dealers to encourage then to push for sales harder and to say that supplies wouldn't run out because sales results were disappointing at that point in the month.

Source;
http://online.wsj.com/article/BT-CO-20110526-707691.html

Honda Gives Assurances to U.S. Dealers

By MIKE RAMSEY
DETROIT—Honda Motor Co. told its U.S. dealers Friday that July vehicle deliveries would increase by 11% from June levels and accelerate in August as the auto maker ramps up production after the March 11 earthquake in Japan.

American Honda Executive Vice President John Mendel said in a memo that its sales continued to "run at a relatively soft pace" despite what the company considers decent inventory levels, albeit lower than year-earlier levels.

"Many of you have indicated that it is due in large part to concerns for inventory going forward," Mr. Mendel said.

Honda follows Nissan Motor Co. in efforts to encourage its dealers to continue driving deals to gain customers despite a murky outlook for vehicle inventories this summer. Both auto makers and Toyota Motor Corp. had to stop production in Japan for several weeks following the earthquake, and all continue to face shortages of electronic components, LCD screens and rubber.

U.S. sales for Honda rose 10% last month compared to 18% for the overall industry.

"It's interesting to note that although our total inventory is down versus May 2010, we have more CR-Vs, Pilots and Fits in dealer inventory now than we did a year ago," Mr. Mendel said.

"With this level of inventory, coupled with competitive incentives focused on vehicles with sufficient availability, you all need to continue to push hard on the sales front."

Last week, Nissan asked dealers to be more aggressive and go after Toyota and Honda, which it deemed vulnerable.

Source;
http://online.wsj.com/article/SB10001424052748704816604576335061787279604.html?mod=googlenews_wsj

Honda says parts supply recovery picking up speed

May 17 (Reuters) - Honda Motor is seeing a speeding up in the recovery of parts supplies, which will be key to bringing forward its timing for a return to normal production after a March earthquake and tsunami in northeastern Japan disrupted supply chains, the automaker's chief financial officer said on Tuesday.

Honda Chief Financial Officer Fumihiko Ike also told a small group of reporters that the company plans to announce its earnings forecast for the current fiscal year before its shareholders' meeting, which is scheduled for June 23. (Reporting by Kentaro Sugiyama; Writing by Junko Fujita; Editing by Edmund Klamann)

Source;
http://www.reuters.com/article/2011/05/17/honda-production-idUST9E7GA01I20110517

Japan nuclear plant shutdown adds new risk to economy

By Stanley White and Chang-Ran Kim
TOKYO Mon May 9, 2011 1:27pm BST

(Reuters) - The surprise closure of another Japanese nuclear plant, this time at the power supplier to the heart of the auto industry, threatens to dampen consumer sentiment and will provide car makers with yet another reason to produce fewer cars in Japan.

Chubu Electric Power (9502.T) agreed on Monday to close its Hamaoka plant in central Japan, raising concerns over the steady supply of power to its region, which is home to Toyota Motor Corp (7203.T) and other major manufacturers.

The shutdown was requested by the government, which singled out Hamaoka as particularly vulnerable to a major earthquake and tsunami, after the 9.0-magnitude quake on March 11 triggered a nuclear crisis in the northeast.

Output disruptions may not be large enough to delay the economic recovery nationwide because Chubu is taking steps to meet peak summer demand by boosting thermal energy and securing electricity from another utility in western Japan.

But in the longer run the lack of clarity about how the government's energy policy might change following the March 11 disaster could tempt Japanese manufacturers to move more production overseas and discourage private consumption.

"We can rely on thermal power in the short term, but this raises costs and emissions," said Yasuo Yamamoto, senior economist at Mizuho Research Institute.

"In the future, we're not sure what the government wants to do. The longer that uncertainty about the power supply continues, the more companies will start thinking about manufacturing overseas."

The Hamaoka plant, located about 200 km (120 miles) southwest of Tokyo, accounts for about 15 percent of its electricity output. Chubu in turn provides power to half of the 18 plants that make Toyota's vehicles in Japan, and all four of Suzuki Motor Corp's (7269.T) domestic car and motorcycle factories.

The coverage area also includes other auto plants including those of Honda Motor Co (7267.T) and Mitsubishi Motors Corp (7211.T), but Toyota is most vulnerable given its heavy ratio of cars made domestically.

Toyota and Honda have been forced to operate at about half the levels planned before March 11 due to the shortage of components. They have forecast a return to normal production levels by the end of this year.

The Chubu region also includes a concentration of manufacturers in the flat panel display and semiconductor industries, such as Sharp Corp's (6753.T) Kameyama LCD factory and Toshiba Corp's (6502.T) Yokkaichi semiconductor plant.

Toyota, Suzuki and other car makers said they had no comment on how they would cope before Chubu Electric explains how it plans to make up for the power shortfall.

Replacing nuclear power with that produced by conventional thermal plants could increase electricity costs, but those make up only a small portion of automakers' costs, argues Nomura Securities auto analyst Masataka Kunugimoto.

What matters more, analysts say, is doubts about reliability of power supplies that could give automakers another reason -- in addition to a strong yen and cheaper labor abroad-- to shrink production volumes in Japan.

"This raises a question of how you're going to split your domestic and overseas production," said Koji Endo, senior analyst at Advanced Research Japan.

Toyota and Nissan have publicly committed to a minimum level of domestic production to keep Japan's tradition of manufacturing alive, but questions surrounding energy policy could force a rethink, Endo said.

The shutdown's impact on households could be more direct and immediate. Power cuts or a rise in electricity bills could force households served by Chubu Electric to save more energy or spend less on everything else, damaging sentiment already depressed by radiation leaks from the Fukushima plant in the tsunami-ravaged northeast.

Private consumption accounts for more than 50 percent of gross domestic product and Japan's limping economy badly needs consumer spending to hold up.

"Chubu Electric is likely to come up with a campaign to save power, which could depress private consumption," said Takuji Okubo, chief economist at Societe Generale Securities.

"Companies should be able to cope, but weak consumer sentiment could become a national phenomenon."

Source;
http://www.autospies.com/news/Closure-Of-Another-Power-Plant-May-Force-Auto-Production-Out-Of-Japan-63740/

WSJ: Honda Motor:Expect Domestic Plants To Return To Normal By Year-End

TOKYO (Dow Jones)--Honda Motor Co. (7267.TO) said Monday that it expects its domestic auto plants to return to production levels planned before the March 11 earthquake by the end of the year.

The car maker's domestic plants will remain at half the initially planned volume until the end of June, though production levels after July are still unclear and will depend on parts supplies. The outlook for overseas factories also remains uncertain, Honda said.

Plants in North America, the U.K., Turkey and the Philippines are operating at 50% of their initially planned levels, while the company has also reduced output volumes at factories in China and Thailand, the car maker said.

The quake and tsunami disrupted the company's parts supply chain and a parts shortage has kept production at reduced levels.

Toyota Motor Corp. (7203.TO) said last Friday that it doesn't expect its domestic and overseas factories to be back to normal until November at the earliest.

Source;
http://online.wsj.com/article/BT-CO-20110424-702114.html

Honda altering production schedule in Alliston

Reducation expected to continue until May 6
By Marg. Bruineman, the Barrie Examiner

Reduced daily production levels at Honda Canada's Alliston facility has been extended as a result of a parts shortage from the earthquake-ravaged Japan.

"Production adjustments continue until May 6, although adjustments vary," said Honda's Lori Van Valkenburg in Alliston. "All associates have the opportunity to work their entire shift and work is being provided for them."

They also have the option of taking vacation time or time without no pay with no penalty.
On Monday, she said, associates worked six hours in production in the weld department in Plant 2.

But the expectations are that everything will return to normal after that.

"We anticipate that additional production adjustments will continue after that date," the company announced in a press statement.

The car builder has reduced the number of cars it builds as a result of last month's devastating earthquake and tsunami in Japan. The natural disaster, which has claimed about 14,000 lives, impacted both the car builder and its suppliers in Japan.

Most of the cars supplied to the North American market are built in North America. And a majority of the parts are sourced here.

About 4,200 people work at Honda Canada's Alliston facility, which has two car-building plants and an engine plant.

The bulk of production are Honda Civics (sedan, coupe, and Si sedan & coupe) along with the Acura MDX, Acura ZDX, Acura CSX.

But some of the parts are shipped in from Japan, where several companies are struggling to get back to production. As a result, there's limited supply of parts available for car building in Alliston.

Honda's car building plants in Japan all resumed limited production last week, operating at about 50% capacity.

Source;
http://www.thebarrieexaminer.com/ArticleDisplay.aspx?e=3080274

Honda president's earthquake report

Boss gets on his bike to see the damage first-hand

Honda's CEO and president, Takanobu Ito, has revealed that he used his bike to reach the firm's damaged facilities in the aftermath of the Japanese earthquake and tsunami.

In his personal report on the situation, Ito said:

“In the Tochigi prefecture, there are many Honda facilities including the Automobile R&D Center, an office for the purchasing division, a parts plant and Honda Engineering Co., Ltd., which develops production technologies. Shortly after the earthquake, I rode my motorcycle to visit each of these facilities to check the level of damage. With fallen ceilings and walls and other damage, none of these facilities were in a condition to resume operations immediately. I realized it would not be an easy effort to recover these facilities.

“The purchasing division, whose head office in Tochigi was damaged, set up an emergency satellite office within Saitama Factory and began checking situation all of our suppliers including second and third tier suppliers and investigating the impact of the earthquake on the parts supply. Associates at the purchasing division are pursuing the necessary measures for every single part that was impacted toward the recovery of overall parts supply.

“The Automobile R&D Center set up satellite offices within the plants and other offices as it will take some time to restore its building and facility. After establishing a telecommunications network infrastructure at each office, the team resumed development operations on March 28. The development of mass-production models requires a lot of coordinated work with production plants; therefore, in hindsight, I am expecting that the team will be able to work more efficiently by being close to the production site.

“In the three weeks since the earthquake, we have worked to achieve the ability to resume our operations and we will resume production of finished units of automobiles at the Saitama and Suzuka factories on April 11. This means all Honda production plants in Japan will be in operation as of that date. However, as the parts supply situation remains fluid, production of component parts and vehicles in Japan will be at approximately 50% of the original production plan for the time being, and we have reduced production volume at some plants outside of Japan.

“We will strive to get back to normal operation as soon as possible by stabilizing the parts supply while also considering other options including changing the model mix at some production plants. We will also bring the pace of automobile development back to where it was before the earthquake by using R&D facilities in Tochigi as they are ready to resume operations, as well as the temporary satellite offices.

“The other day, I visited affected suppliers and dealers in Tohoku and saw them working hard day and night to resume their operations under conditions beyond my imagination. We will devote ourselves to support our suppliers and dealers to resume their stable parts production and services to our customers as soon as possible.

“We, the Honda Group, will go all out to overcome this difficult time and recover our business as soon as possible, which will also be a contribution to the recovery of the Japanese economy as well.”

Source;

http://www.visordown.com/motorcycle-news-industry/honda-presidents-earthquake-report/17777.html

Auto Makers Pull, Rethink New Car Launches

After the devastating earthquake and tsunami of March 11, Japan’s auto makers aren’t just facing a struggle to scramble for parts from troubled suppliers to try to get their factories working again. They’re also having to retool their whole marketing strategies.

Honda Motor Co. had been scheduled to hold a press conference on March 17 for what would have been the world’s first hybrid wagon, the Fit Shuttle. Instead, Honda was obliged to cancel the event and delay the domestic launch, originally in the diary for the following day. Meanwhile Toyota Motor Corp. has had to postpone the release of the wagon and minivan versions of the Prius hybrid – now Japan’s biggest-selling car ever: that was on the slate for late April in Japan.

While others like Mazda Motor Corp. and Mitsubishi Motors Corp., both with plans to roll out new vehicles later this year, say they’re not considering delaying launches at the moment, the postponement of new Toyota and Honda hybrid models come as demand for fuel-efficient vehicles is likely growing. The average gasoline price in the disaster-troubled country hit Y151.2 per liter on March 22, the highest level since October 2008, and remains around that level, according to the country’s Oil Information Center. As well as price, availability is a concern for people in quake-hit northern Japan, with fewer public transport options than big cities like Tokyo: many gasoline stations in the area remain shut after the disaster.

Spokeswomen at Honda and Toyota said that they have yet to decide on new launch schedules. Even if customers’ appetite for fuel-efficient vehicles is on the rise, they won’t be able to meet higher demand with vehicle production ability dented by the parts shortage, they said. Crimped by the continued vehicle output stoppage, the country’s auto sales sank 37% in March, the biggest drop in 37 years.

Perhaps no surprise, then, that Toyota, Honda, Nissan Motor Co. and other local auto makers are holding off on the aggressive sales promotions in TV, magazine, newspaper ads, or special sales campaigns at dealerships, that typically surround new launches.

Still, auto makers are responding to demand for gas-sipping cars. Toyota restarted production of three hybrid models from March 28 in Japan, including the Prius, and Honda has said that it will run all its domestic factories from April 11, possibly resuming production of all kinds of its vehicles including the Insight and Fit hybrid cars.

Source;

http://blogs.wsj.com/japanrealtime/2011/04/07/auto-makers-pull-rethink-new-car-launches/

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 to cut output at U.S., Canadian auto plants

DETROIT (Reuters) - Honda Motor Co (7267.T: Quote) will cut production at its U.S. and Canadian automotive plants starting Wednesday due to disruptions in the supply of auto parts after the Japanese earthquake more than two weeks ago. The temporary changes to the production schedule will vary plant by plant based on the availability of certain parts, Honda spokesman Jeffrey Smith said. He declined to detail the changes in production at individual plants. The automaker operates plants in Canada and three states in the United States. Honda relies on North American suppliers for more than 80 percent of the parts it uses to build vehicles in North America. Honda has suspended production at its two plants in Japan until at least April 3. Smith said most of the company's Japan-based parts suppliers have resumed production or are ready to start. "This is a very fluid situation," Smith said. He added: "We are working with a few suppliers who have yet to resume production to reestablish operations and at the same time, we are evaluating additional sources for some parts." The March 11 earthquake, tsunami and nuclear crisis in northern Japan have left the global auto industry struggling to manage a ripple effect across its production and supply base. Earlier Tuesday, Toyota Motor Corp (TM.N: Quote)(7203.T: Quote) told its dealers to curtail orders of certain replacement parts to ensure an adequate supply. Source; http://ca.reuters.com/article/businessNews/idCATRE72S74M20110329

Report: Japan will affect all automakers

Alisa Priddle / The Detroit News

Every major automaker will be affected by the disaster in Japan by mid-to-late April, according to a report released today by automotive forecasters IHS Global Insight of Northville.
"It is not a matter of if, but when," said Michael Robinet, director of Automotive Forecast, in an analysis of the impact on the auto industry of the earthquake and subsequent tsunami in northern Japan. The damage halted domestic vehicle production and affected the supply chain, which is causing disruptions at plants around the world that rely on Japanese-sourced parts.

The IHS analysis concluded that light vehicle output in Japan is expected to be impacted by about 335,000 vehicles by Friday and that figure could be in the 450,000 range by the end of March. That is based on a loss of about 37,000 cars and trucks a day if all Japanese assembly plants are affected.

Toyota Motor Corp. and Nissan Motor Co. are gingerly resuming production of components for overseas plants and hope to restart vehicle assembly plans in Japan later this week.

Some of the most fuel-efficient vehicles offered by Japanese automakers are only built in Japan. As supplies diminish of vehicles such as the Toyota Prius hybrid, average transaction prices for some models are starting to creep up and incentives are likely to evaporate, said Aaron Bragman, IHS automotive analyst, in a separate report also released today.

TrueCar.com says prices of Japanese models in the U.S. are rising already, with the Prius up $169 per vehicle, on average, in the past week in response to the supply crunch, Bragman notes.

"If the supply of imported Japanese fuel-efficient vehicles cannot be restored quickly, an opportunity may arise for well-placed competitors to start stealing U.S. market share from Japanese automakers," Bragman said.

Among the well-situated is Ford Motor Co., which has made fuel-efficiency a priority and has a number of new models that get 40 miles per gallon. General Motors Co. also has new small vehicles as well as the Chevrolet Volt plug-in hybrid. Hyundai Motor Co. also has a lineup of strong contenders.

"The initial estimates are that this could be a protracted shutdown of the Japanese industry," Bragman said. In addition to issues with vehicle production and parts supply, there are rolling blackouts because of damage to the electric power grid and a nuclear disaster in addition to other infrastructure damage as well as port and shipping issues and the loss of workers.

Robinet said it could take seven weeks of full production, with overtime, at a facility to make up for one week of lost production.

But competitors will only be able to fill any voids created by a shortage of Japanese models if they have the parts to keep their own assembly lines running as well.

So far, lost volume outside Japan is only about 10,000 vehicles, according to Robinet. That includes General Motors Co.'s truck plant in Shreveport, La., which suspended work because of parts shortages.

The Japanese-made components most affected include semi-conductors, integrated circuits, sensors and LCD displays, but IHS said shortages also may be felt in resins and synthetic rubber in the next few weeks. And the quake zone is home to powertrain parts such as gears and clutch components. Specialty materials such as silicon and certain types of glass and metals could also run short, Robinet forecasts.

Source;
http://www.detnews.com/article/20110321/AUTO01/103210409/1020/Report--Japan-will-affect-all-automakers

Driver films moment his car is engulfed by tsunami

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

Canada to lose out on short-term trade while Japan recovers

TORONTO - Canada will feel the economic impact of the powerful earthquake and huge tsunami that swept away everything in its destructive path in Japan, but the effects should be short lived, experts say.

They suggest Canada stands to lose out on short-term trade as Japan focuses on recovering from the 8.9-magnitude tremor Friday — the most powerful earthquake in the area in nearly 1,200 years.

Japan imported about $9.2 billion of Canadian goods last year, including wheat, lumber, coal and minerals used in manufacturing.

But with several Japanese factories shut down following the disaster, including those of automakers Toyota and Honda, the focus will be on recovery rather than producing cars or other goods like electronics, predicts Tim Richardson.

Richardson, former head of the now-defunct Canada-Japan Trade Council and now a professor at the University of Toronto, said Japanese business executives "will be told in emails from head office to be very concerned about expenditures."

"The Japanese companies will not be producing their manufactured products that require the constant imports," he said.

The fallout from the 8.9-magnitude quake and the seven-metre-tall wave that swept over parts of Japan, will also likely affect Canadian banks, software and telecommunications companies that work with the exporters, he said.

But Richardson said Canada has a good reputation in the lumber and construction industries and exports will bounce back as Japan rebuilds.

Sherry Cooper, chief economist at BMO Financial Group, said the disaster an ocean away might draw more foreign investment into Canada, reducing the impact of the lower trade figures.

"Canada will continue to be seen as a safe haven. We are truly an oasis of calm in a world that is battered by both natural disasters and financial disasters. On a relative basis we continue to be performing very well," she said.

She added that Japan buys a fair amount of Canadian products, but the number is small compared to the U.S., where Canada sells 80 per cent of its exports.

"It's certainly meaningful but it's not going to push our economy into recession," she said, adding that the Japanese disaster in addition to the political turmoil in the Middle East, and rising food and oil prices will ultimately hit Canadian wallets.

"But as we see these developments continue...we can't help but be impacted. Consumers are feeling the pinch."

Both Cooper and Richardson cautioned that the extent of the economic impact in Canada won't be clear for days because the quake happened on a Friday evening and it is not yet clear how much damage has been sustained by Japanese infrastructure.

The northern city of Sendai, which was close to the epicentre of the earthquake, is a major transportation hub for the country.

Source;
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b6218378&page=2

Sony, Toyota Among Japanese Companies Closing Factories After Earthquake

Our thoughts and prayers go out to all the families affected by this Tsunami.

Companies including Sony Corp. (6758) and Toyota Motor Corp. (7203) halted output at plants after an 8.9- magnitude earthquake struck off the coast of Japan, damaging production facilities and causing power outages.

Sony halted and evacuated six factories in northeastern Japan, said Yasuhiro Okada, a spokesman at the Tokyo-based company. He said the company was assessing the impact of power outages and damage to its facilities in the region, which make Blu-ray discs, magnetic heads and batteries.

The quake, Japan’s strongest in at least a century, struck at 2:46 p.m. local time 130 kilometers (81 miles) off the coast of Sendai, north of Tokyo, the U.S. Geological Survey said. The tremor caused a tsunami as high as 10 meters (33 feet) that inundated northern towns and caused buildings to shake violently as far away as Tokyo. At least 26 people were killed by the wave and many were missing, state broadcaster NHK Television said.

Toyota, the world’s largest automaker, and its affiliates closed three factories, said Shiori Hashimoto, a spokeswoman in Tokyo. The Toyota City-based carmaker began production at a new plant in Miyagi this year that makes Yaris compact cars and has capacity to make 120,000 vehicles a year.

Honda, Nissan
Honda Motor Co. closed two factories, said Hajime Kaneko, a spokesman for the Tokyo-based carmaker. A 42-year-old male employee was crushed to death by a collapsing wall at a research and development center in Tochigi prefecture and about 30 other employees were injured, Kaneko said.

Nissan Motor Co. closed four factories including car plants in Tochigi and Kanagawa and engine factories in Kanagawa and Fukushima, Mitsuru Yonekawa, a spokesman for the Yokohama-based company, said by phone. Two workers suffered minor injuries, he said.

A refinery on fire outside Tokyo exploded, while nuclear power stations were shut down. Narita airport, Tokyo’s main international gateway, was closed and bullet-train services suspended. More than 4 million homes were without power, Tokyo Electric Power Co. said.

Toyota shares traded in Frankfurt fell as much as 3.8 percent, the biggest intraday decline since Jan. 21, to 30.45 euros as of 10:15 a.m. local time. Honda dropped as much as 4.5 percent and Sony slid as much as 2.5 percent in the German city.

Fuji Heavy
Fuji Heavy Industries Ltd., the maker of Subaru cars, closed five factories, said Kenta Matsumoto, a spokesman for the Tokyo-based company.

Toyota Boshoku Corp. (3116), a Toyota Motor supplier, reported damage at a plant in Miyagi. Roads were also cracked near its factory, said Misako Nagata, a spokeswoman for the parts maker. Denso Corp. (6902), Japan’s biggest auto-parts maker, said a plant under construction south of Miyagi was damaged. All of its workers were safe, said Goro Kanemasu, a spokesman for the company.

Sapporo Holdings Ltd. (2501), Japan’s fourth-biggest beermaker, suspended operations at factories in Sendai and Chiba due to power outages and damage, Katsuhito Ogawa, a spokesman for the Tokyo-based company, said by e-mail.
Oriental Land Co., the operator of Tokyo Disney Resort, will close the amusement park tomorrow to inspect facilities, the company said in a statement today. It hasn’t yet decided whether to open the resort on March 13. No injuries were reported at the resort, the company said.

Panasonic, Canon
Panasonic Corp. (6752) said several employees at its three factories in Miyagi and Fukushima prefectures sustained minor injuries. The Osaka-based company is still assessing the damage to facilities, Yuichi Takatoku, a Tokyo-based spokesman for the company, said by phone.

Canon Inc. (7751), the world’s biggest camera maker, didn’t suffer damage to plants that would halt output, said Hirotomo Fujimori, a spokesman in Tokyo, where the company is based.

The quake was followed by a 7.1-magnitude aftershock at 4:25 p.m., the U.S. Geological Service said.

Boats smashed into walls as the tsunami struck, inundating buildings with black water full of debris across stretches of coast north of Tokyo, NHK images showed. One large building was lifted off its foundations and dragged into the ocean.

Farmland was flooded with burning debris in some areas as the tidal surge swept inland. Large boats were left stranded after the water surged back to sea.

Airport Flooded
The airport in Sendai, a city of 1 million people 310 kilometers north of Tokyo, was flooded by the tsunami, according to NHK footage.

Japan Airlines Corp. diverted 22 flights to other airports, the company said in a faxed statement. In total, 27 flights have been impacted by the quake, affecting 5,290 people, the statement said.
East Japan Railway Co. (9020), the nation’s largest train operator, suspended operations of trains in the Tokyo area along with its bullet-train operations, according to its website. Tokyo Metro Co., the capital’s largest subway operator, said on its website it stopped trains, forcing commuters to line up for taxis.

Prime Minister Naoto Kan ordered the army to aid rescue efforts after the quake, which struck 373 kilometers northeast of Tokyo.

The following is a summary of what companies have said regarding damage from the earthquake: Company Status
Sony Corp. Production halted at six plants
Toyota Motor Corp. Three group factories halted
Canon Inc. No damage affecting production reported
Nippon Telegraph & Restricted calls to some areas
Telephone Corp. including Tokyo
Nissan Motor Co. Halted production at four plants; two
injuries
Honda Motor Co. Halted two plants; one employee killed;
about 30 injured
Toyota Boshoku Corp. Damage at plant in Miyagi
Seiko Epson Corp. Gathering information
Panasonic Corp. Assessing damage, several workers with
minor injuries
Oriental Land Co. Will close Tokyo Disney Resort tomorrow
for inspections
Denso Corp. Damage to plant under construction in
Fukushima
Asahi Breweries Ltd. Assessing damage
Kirin Holdings Co. No major damage reported
Sapporo Holdings Ltd. Damage at Sendai and Chiba plants
Sharp Corp. Assessing damage
East Japan Railway Co. Halted train services in Tokyo area
Tokyo Metro Co. Halted train services
Tokyo Electron Ltd. No immediate reports of damage
NTT DoCoMo Inc. Mobile-phone service disruptions
Softbank Corp. Mobile-phone service disruptions
Fuji Heavy Industries Five plants halted
Ltd.

Source;
http://www.bloomberg.com/news/2011-03-11/toyota-other-japanese-companies-assessing-damage-from-miyagi-earthquake.html