Japan Auto Plant Halt Prolonged after Kumamoto Quake

Tokyo, Aug. 3 (Jiji Press)–Plant suspension at automakers caused by last week’s major earthquake in Kumamoto Prefecture is being prolonged, with the impact spreading beyond the Kyushu region, which includes the southwestern Japan prefecture. Toyota Motor Corp., Nissan Motor Co. and Daihatsu Motor Co. extended the periods of suspension of plant operations and production of some models for two days until Friday, due to parts supply disruptions caused by damage to related companies and logistics problems. Plants in the country’s Honshu main island have also been affected. The automakers are unsure when these operations can be resumed. Kyushu, mainly the northern part of the region, is an auto industry hub. According to the government’s Kyushu Bureau of Economy, Trade and Industry, Kyushu accounts for nearly 15 pct of domestic auto production and has more than 1,000 related companies. Manufacturers of vehicles and parts have built complex supply chains that depend on each other. Aisin Corp., a Toyota-affiliated parts maker, is working to restore a plant of subsidiary Aisin Kyushu Co. in the city of Kumamoto. An inspection of production lines has started, but it is uncertain when the plant’s operations can be resumed. The Aisin group had diversified its production systems and keeps some inventory, based on lessons from the Kumamoto quake disaster 10 years ago. It hopes to limit the impact of Tuesday’s temblor through the use of alternative production bases. According to an executive of another major auto parts maker, some of the company’s facilities that were not damaged have also halted operations because factories of their clients have stopped. Meanwhile, recovery is progressing at semiconductor plants. Renesas Electronics Corp. expects to resume production at its Kawashiri plant in the city of Kumamoto in stages from Wednesday, with its production capacity forecast to return to the level before the disaster by the end of August. Its Nishiki plant in the prefecture’s town of Nishiki has already attained such recovery. An image sensor plant of Sony Group Corp. in the prefecture’s town of Kikuyo is expected to gradually resume operations in stages from Tuesday. END [Copyright The Jiji Press, Ltd.]