This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-12802495

The article has changed 5 times. There is an RSS feed of changes available.

Version 0 Version 1
Japan's carmakers are getting set to restart production Toyota and Honda delay restart amid part supply issues
(about 6 hours later)
Japanese car manufacturers are looking to restart production after their operations were disrupted by the deadly earthquake and tsunami. Japanese carmakers Toyota and Honda have delayed plans to restart production saying that they cannot get the parts they need.
Toyota Motors says it will announce plans to restart production on Tuesday. Production at Honda Motors and Mazda is scheduled to start later this week. Toyota will not restart production before 26 March. Honda Motors says it has extended a production shutdown until at least 27 March.
This comes after Nissan Motors resumed work at six of its factories on Monday. The firms have halted operations after Japan was hit by a deadly earthquake and tsunami.
However, analysts said that production will depend on the supply of parts. Analysts said the shutdown would cost companies millions of dollars a day.
They said the main task will be getting the supply chain to work at full capacity, without which company production numbers could be far less than before. A spokeswoman for Honda said that the company now expects delivery of new vehicles in Japan to be delayed.
"A start in production does not automatically mean that they have started to work at full capacity," said Vivek Vaidya of Frost & Sullivan. Different pace
"They could be working at sub-optimal capacity" he added.
Supply dependent
Assembling a car requires thousands of parts to be put together. These are provided by different suppliers.Assembling a car requires thousands of parts to be put together. These are provided by different suppliers.
"Each supplier has to be able to reach the levels before the devastation to reach the full production plan," said Mr Vaidya. "Each supplier has to be able to reach the levels before the devastation to reach the full production plan," said Vivek Vaidya of Frost & Sullivan.
The reason behind a shortfall of parts is down to each company's efficiency plans.
Most of the parts are shipped to the manufacturers a short time ahead of the assembly line requirements, analysts said.
This means that most car factories have relatively low inventories, which can create shortages in supply.
Balancing act
As different vendors get back on track at a different pace, the supply of parts will also be inconsistent in the short to medium term, analysts said.As different vendors get back on track at a different pace, the supply of parts will also be inconsistent in the short to medium term, analysts said.
There might be an excessive supply of parts for one model of the car, while the other models might face a shortage.There might be an excessive supply of parts for one model of the car, while the other models might face a shortage.
According to analysts this will mean the manufacturers will have to make some tough choices.According to analysts this will mean the manufacturers will have to make some tough choices.
"They will have to get the product mix correct," said Mr Vaidya."They will have to get the product mix correct," said Mr Vaidya.
"Getting that right will be a challenge," he added."Getting that right will be a challenge," he added.