Japanese auto output curbed in North America

Associated Press (Detroit) -Two Japanese automakers are scaling back production at North American plants as they assess their ability to get parts from Japan after that country's devastating earthquake and tsunami.

Subaru of America said Tuesday it has suspended overtime at its only North American plant in Lafayette, Ind. Toyota Motor Corp. also said it was suspending overtime and Saturday production at its 10 plants in the region.

So far, other Japanese automakers say their North American plants are unaffected. Nissan Motor Co., Honda Motor Co., Mitsubishi Motors and Mazda Motor Corp. all say they have not changed their production plans.

But that could change if lingering damage from Friday's earthquake prevents parts shipments. Mitsubishi, for example, has enough parts on hand or en route to operate its Illinois assembly plant through April 3, spokesman Dan Irwin said.

“The situation is fluid, so we continue to monitor our supply chain and logistics,” he said.

Toyota, Honda and Nissan halted production in Japan for most of the week.

The companies are suspending production to assess damage to plants, ports and roads after the natural disaster, centered in northern Japan. It killed thousands, destroyed towns and wrecked the infrastructure of the world's second-largest auto producer.

Auto companies had said earlier that U.S. supplies of some fuel-efficient cars such as the Toyota Prius hybrid, Toyota Yaris and Honda Fit, may be affected because they are built exclusively in Japan and could become more desirable if U.S. gasoline prices reach $4 a gallon.

Top U.S. sellers such as the Toyota Camry, Honda Accord and Nissan Altima are made in North America. Barclays Capital analyst Brian Johnson said he expects the companies“to maintain adequate inventory for most vehicles.”

Japan made nearly 7.9 million vehicles in 2009, or about 13 percent of the 61.7 million vehicles produced worldwide that year, according to the International Organization of Motor Vehicle Manufacturers. The U.S. is its largest market, taking in 1.2 million Japanese vehicle imports, according to the Japan Automobile Manufacturers Association.

In Japan, Toyota, the world's biggest automaker, said it was shutting down production at its 12 wholly owned factories through today and suspending factories that it partly owns. The closures are expected to affect production of 40,000 vehicles.

About 1,300 Nissan vehicles bound for the U.S. were damaged at Japan's Port of Hitachi, along with 1,000 vehicles being stored in Miyagi, the company said.

A shipment of more than 600 U.S.-bound Nissan Leaf electric cars left Japan on March 10, just before the earthquake, and the company said the cars will arrive on schedule.
 

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