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| Version 2 | Version 3 |
|---|---|
| Toyota and Honda delay restart amid part supply issues | Toyota and Honda delay restart amid part supply issues |
| (about 3 hours later) | |
| Japanese carmakers Toyota and Honda have delayed plans to restart production saying that they cannot get the parts they need. | Japanese carmakers Toyota and Honda have delayed plans to restart production saying that they cannot get the parts they need. |
| Toyota will not restart production before 26 March. Honda Motors says it has extended a production shutdown until at least 27 March. | Toyota will not restart production before 26 March. Honda Motors says it has extended a production shutdown until at least 27 March. |
| The firms have halted operations after Japan was hit by a deadly earthquake and tsunami. | The firms have halted operations after Japan was hit by a deadly earthquake and tsunami. |
| Analysts said the shutdown would cost companies millions of dollars a day. | Analysts said the shutdown would cost companies millions of dollars a day. |
| A spokeswoman for Honda said that the company now expects delivery of new vehicles in Japan to be delayed. | A spokeswoman for Honda said that the company now expects delivery of new vehicles in Japan to be delayed. |
| Different pace | Different pace |
| 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. |
| Most of the parts are shipped to the manufacturers a short time ahead of the assembly line requirements, analysts said. | 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. | This means that most car factories have relatively low inventories, which can create shortages in supply. |
| Until the supply chain is sorted out analysts warn that plants will not be able to operate at full speed and there may be patchy production across the country. | Until the supply chain is sorted out analysts warn that plants will not be able to operate at full speed and there may be patchy production across the country. |
| "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. | "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. |
| Infrastructure issues | Infrastructure issues |
| To get back to full speed, Japan's car manufacturers have not only got to overcome their own issues, but also wait for external factors to get sorted. | To get back to full speed, Japan's car manufacturers have not only got to overcome their own issues, but also wait for external factors to get sorted. |
| To begin with, they need uninterrupted power supplies, which analysts say will take some time given the situation at the Fukushima Daiichi plant. | To begin with, they need uninterrupted power supplies, which analysts say will take some time given the situation at the Fukushima Daiichi plant. |
| "A significant percentage of Japan's electrical generating capacity has been taken offline, and is unlikely to be restored soon," said Aaron Bragman of IHS Global Insight. | "A significant percentage of Japan's electrical generating capacity has been taken offline, and is unlikely to be restored soon," said Aaron Bragman of IHS Global Insight. |
| To make matters worse for the manufacturers, a shortfall in power supply in one part of Japan cannot be easily replenished by transferring power from another part of the country. | |
| Different power grids in Japan function at different frequencies making it difficult for power to be transferred. | |
| "The issues with the Japanese auto industry are quite serious," he said | "The issues with the Japanese auto industry are quite serious," he said |
| "The situation is unlikely to return to normalcy any time soon." | "The situation is unlikely to return to normalcy any time soon." |