Trade Resources Company News Japanese Automakers Toyota and Honda Hit by Earthquakes

Japanese Automakers Toyota and Honda Hit by Earthquakes

Japanese automakers Toyota, and Honda, and other have been hit by the recent earthquakes in the country.

Toyota said it will stop production on its vehicle assembly lines in stages between April 18 and 23 because of parts shortages resulting from the serious earthquakes that struck Japan's island of Kyushu.

The company said it will make decisions on the recommencement of operation at its facilities in Japan on the basis of availability of parts.

Another automaker Honda said it will suspend operations at its Kumamoto factory (Ozu-machi, Kikuchi-gun, Kumamoto Prefecture) until 22 April 2016.

The company will identify subsequent production plans as per facility restorations and component supply.

Earlier this year, Toyota provided limited details on what modifications it made to its manufacturing system after the 2011 quake exposed the vulnerability of the "just in time" system.

The system enables companies to operate without big and costly inventories, rather than secure small quantities of parts from suppliers only when required.

An Aisin spokesman was quoted by Reuters as saying, "As a Toyota-affiliated company, we don't hold significant inventory.

"So as a rule we wouldn't have been holding inventories to last, say, one week or a month."

Aisin said that instead of building up big inventories, the company has been maintaining just in time system and has plans for shifting production elsewhere.

Source: http://greenvehicles.automotive-business-review.com/news/japanese-automakers-toyota-and-honda-hit-by-earthquakes-180416-4868816
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