IBJNews

Subaru, Toyota curb output at Indiana plants

Back to TopCommentsE-mailPrint

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. Toyota Motor Corp. also said it was suspending overtime and Saturday production at its 10 plants in the region. Toyota employs 4,100 at its Indiana plant in Princeton.

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 the 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.

In Japan, auto companies have shut down production for the rest of the week as they assess damage to plants, ports and roads.

While Japanese automakers with North American plants use locally-based suppliers for many of their parts, others still come from Japan. The U.S. imported $12 billion worth of auto parts from Japan in 2010, from spark plugs to engines, according to the Original Equipment Suppliers Association.

Dave Andrea, the trade group's senior vice president of industry analysis and economics, said some parts had been in short supply prior to the earthquake, including semiconductors, precision bearings and tires. He estimated that most automakers have a three- to four-week inventory of parts in the pipeline.

"Once those start to dry out, that's where you see the shortages in the assembly plants," Andrea said.

Companies can ill afford those shortages. Subaru spokesman Michael McHale said the Indiana plant had been running on overtime because of strong sales of its vehicles. The Outback wagon, which is made at the plant, is currently at a 30-day supply. A 60-day supply is considered ideal.

McHale said he didn't know when overtime will be restored at the plant, which produced 150,000 vehicles last year, or 55 percent of the Subarus sold in the U.S. The plant also makes the Tribeca wagon and Legacy sedan.

Toyota, meanwhile, said the restrictions on overtime and Saturday shifts were designed to conserve Japanese-made parts. About 75 percent of the parts in North American-built Toyotas are supplied locally, but the rest come from Japan. All Toyota plants in Japan are closed through at least Wednesday.

Toyota spokesman Mike Goss wouldn't specify which parts are imported, but said the company typically has a two- to three-week supply of them.

Now supplies are uncertain.

"There's some pipeline of parts from Japan to the United States and we're trying not to burn through that too quickly," Goss said.

ADVERTISEMENT

  • More hope & Change
    With Do just respect to the people of Japan, This should be a wake up call for the American Companies & the Leadership of America. If the Supply & Demand Chain Executive world does not get the picture of what should be done they are in my view foolish! If The Restraint of In Ports was in place the United States would not be Hurting from the over All event, because the American resource Structure would be alot stronger an less Affected.

    I as well point out the fact About the NFl and the Colts Foot Ball and the Lucas oil Stadium Built for them to play in as they fight over being paid and Strikes, as they the Nfl makes millions a year the Government would seek to force We the people to Pay for the building then Nationalise the Stadium forceing we the people and Smaller American Companies to Pay Two Way One as the Pay taxes for its up as they compete with the over sea's production market of Good the Fan buy to Support a so call All American Team.

    As I uNderstand that was in-part one reason why many indiana Voters in the md Terms Voted for A Cap on States taxes, i am still woundering why the Taxes have Not be repealed, it the Sport teams mean so much Why wouod not they have paid for the Stadium to make it privately owned v/s a Burden of the over uses of nationalism.

    I don't Watch Football I could care less but its plain to see what the worthless leadership is do and this was long before Obama! I will not be voting for Mitch Daniels


    Reader of imprimis
    Bruce Michael Anderson
    Portfolio URL: http://Writing.Com/authors/epistemology

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Saw the Indy Men's Chorus "Music of Gilbert & Sullivan" at the Indiana Historical Society on Sunday evening.

  2. Temporary workers are not "tools" they are people and companies that keep large amounts of temp staff are cheating.

  3. I miss having them around. I hope one of their stores is in the general Meridian/86th Street area. I will make good use of it.

  4. The Fringe! Plus, the simple fact that there are so many local faves in such close proximity to each other.

  5. I remenber, watching the toll road, being built, through South Bend, when I was 10 years old. I believe, back then that it was estimated, that the toll road, would be paid for in 20 years and then it would be free. I am now 71, what happened? Since the power is in the people, by that, I mean that, we the people are in total control of everything. I, suggest that no one ever use the toll road again, let it go broke. We the people can control the price of everything, from groceries to gas, if we would just do it. If we don't pay the asking price, the sellers will lower the price and if we wait awhile, they will lower the price to what we accept as reasonable. I would like to know why a highway like interstate 94, is so well maintained, a much better highway, than the toll road, but has no tolls. I would also like to know why, a sitting governor, with a term limit, maximum of eight years, can lease, public property, for 75 years. Even though I have transponders in both of my trucks and will not be affected by the increase, I have been and will contine to avoid using the toll road. I make many trips from northern Indiana to Chicago, every year, and I prefer the better highway, I94!

ADVERTISEMENT