UPDATE: Honda Pres: Yen Remains Big Concern As Seeks To Restore Ops

By Yoshio Takahashi
Of DOW JONES NEWSWIRES

TOKYO (Dow Jones)--Honda Motor Co.'s (7267.TO) chief executive voiced concern about the yen's strength Thursday, noting its current position could offset the Japanese auto maker's attempt to recover after the March 11 earthquake and tsunami.

"My feeling is that (the business) situation is tough, especially foreign exchange. I hope that the (unfavorable yen level) will change," Takanobu Ito, president and chief executive of the car maker, said at a press conference for the launch of the auto maker's Fit Shuttle hybrid wagon.

Earlier this week Honda said that it expects its net profit for the current fiscal year through March to drop 63% on the back of the yen's strength and reduced output resulting from a parts shortage in the wake of the disaster.

Honda expects a scarcity of some key parts from suppliers stricken by the disaster to reduce its global sales by 6% to 3.3 million vehicles this fiscal year.

In a bid to push sales during harsh times, Honda rolled out the Fit Shuttle hybrid wagon in Japan three month behind the initial schedule due to the earthquake.

The new hybrid with a starting price of Y1.81 million was developed based on its Fit company hybrid and can run 30 kilometers on a liter of gasoline.

This price is lower than the lowest price of the Prius Alpha minivan hybrid launched last month by Toyota of Y2.35 million.

Toyota's new hybrid was also introduced in Japan with a delay due to the disaster.

Honda said it has received orders for 7,000 Fit Shuttle hybrids, well above the model's monthly sales target of 4,000 units.

But Toyota sees much stronger demand for its newest hybrid, saying Tuesday that it has received 52,000 orders in Japan for the new minivan version of the Prius hybrid one month after its launch. The number far outstrips the company's 3,000 monthly sales target for the Prius Alpha.

Source;
http://online.wsj.com/article/BT-CO-20110616-702125.html

Post-quake Honda says it now has lots of Fits, Insights for dealers

Honda offered a terrific sign this week that it is finally getting back on its feet in the U.S. after the March earthquake and tsunami that drastically slashed production.

It is now telling dealers that they can resume ordering two of the most in-demand models -- the small Honda Fit and the hybrid Insight, Automotive News reports.

The two models, both made in Japan, have been among the most in-demand as gas rose to an average of nearly $4 a gallon. The Fit is the smallest car that Honda sells in the U.S. and comes recommended by Consumer Reports. The Insight is the brand's underrated hybrid, a competitor to Toyota's Prius.

"Honda's manufacturing operations in Japan are returning to nearly normalized levels by the end of summer," said John Mendel, executive vice president of Honda's U.S. sales operation in a memo to Honda dealers. Adding back Fit and Insight "represents a major improvement from the recovery timetable we provided you last month."

Honda stopped orders on the models after the earthquake. Honda didn't incur major damange to its factories in Japan, but it has been badly impacted by the shortage of parts that has hampered other automakers, including those in the U.S.

In fact, Mendel is downright bullish. Noting that other models like the Pilot SUV, Odyssey minivan and CR-V small crossover are coming back to normal production levels, he implored dealers, "it is imperative that you keep your foot on the sales pedal."

It won't be easy: Sales fell 22% in May compared with a year ago, the News notes.

Source;
http://content.usatoday.com/communities/driveon/post/2011/06/post-quake-honda-says-now-lots-of-fits-insights-for-dealers/1

Honda plans to bring its Japanese assembly plants back to normal output by summer

Honda Motor Co. is seeking to recover from the Japan disaster months earlier than forecasted. It expects that its assembly plants in Japan will be able to resume normal production by summer. Spokesman Keitaro Yamamoto said Honda’s factories in Sayama and Suzuka factories, the car’s only assembly plants in Japan, are expected to get back to pre-earthquake production levels by August. Honda had previously announced that global production will be restored by the end of the year. Honda had been significantly affected by the March 11 earthquake and tsunami in Japan that had resulted to disruptions in the supply chain and to idled plants.

But it’s likely that the global operations will normalize earlier with the progress in the country’s recovery, according to Autonews. Honda anticipates that the r&d center’s engineers, who were out of work after the disaster struck, will go back to the facility by the middle of June. The earthquake claimed one death and led to several injuries when it caused the ceiling at Honda’s body design facility to crash down. Last March, Honda put a thousand of its r&d workers (about 10% of the center’s total workforce) to continue their work at its other buildings in the site or at its other facilities in Japan while repairs are ongoing.

Yamamoto said that suppliers are exceeding expectations and are restoring output earlier. That is why automakers are also able to resume normal production earlier too. Honda’s improved outlook was revealed only days after it said that U.S. production will go back to normal this August for its entire lineup except the recently redesigned Civic. Honda has announced that a second shift will be put up later in 2011 at its Civic plant in Indiana to help make up for the production losses.

Source;
http://www.4wheelsnews.com/honda-plans-to-bring-its-japanese-assembly-plants-back-to-normal-output-by/

Honda Gives Assurances to U.S. Dealers

By MIKE RAMSEY
DETROIT—Honda Motor Co. told its U.S. dealers Friday that July vehicle deliveries would increase by 11% from June levels and accelerate in August as the auto maker ramps up production after the March 11 earthquake in Japan.

American Honda Executive Vice President John Mendel said in a memo that its sales continued to "run at a relatively soft pace" despite what the company considers decent inventory levels, albeit lower than year-earlier levels.

"Many of you have indicated that it is due in large part to concerns for inventory going forward," Mr. Mendel said.

Honda follows Nissan Motor Co. in efforts to encourage its dealers to continue driving deals to gain customers despite a murky outlook for vehicle inventories this summer. Both auto makers and Toyota Motor Corp. had to stop production in Japan for several weeks following the earthquake, and all continue to face shortages of electronic components, LCD screens and rubber.

U.S. sales for Honda rose 10% last month compared to 18% for the overall industry.

"It's interesting to note that although our total inventory is down versus May 2010, we have more CR-Vs, Pilots and Fits in dealer inventory now than we did a year ago," Mr. Mendel said.

"With this level of inventory, coupled with competitive incentives focused on vehicles with sufficient availability, you all need to continue to push hard on the sales front."

Last week, Nissan asked dealers to be more aggressive and go after Toyota and Honda, which it deemed vulnerable.

Source;
http://online.wsj.com/article/SB10001424052748704816604576335061787279604.html?mod=googlenews_wsj

Honda says parts supply recovery picking up speed

May 17 (Reuters) - Honda Motor is seeing a speeding up in the recovery of parts supplies, which will be key to bringing forward its timing for a return to normal production after a March earthquake and tsunami in northeastern Japan disrupted supply chains, the automaker's chief financial officer said on Tuesday.

Honda Chief Financial Officer Fumihiko Ike also told a small group of reporters that the company plans to announce its earnings forecast for the current fiscal year before its shareholders' meeting, which is scheduled for June 23. (Reporting by Kentaro Sugiyama; Writing by Junko Fujita; Editing by Edmund Klamann)

Source;
http://www.reuters.com/article/2011/05/17/honda-production-idUST9E7GA01I20110517

Japan nuclear plant shutdown adds new risk to economy

By Stanley White and Chang-Ran Kim
TOKYO Mon May 9, 2011 1:27pm BST

(Reuters) - The surprise closure of another Japanese nuclear plant, this time at the power supplier to the heart of the auto industry, threatens to dampen consumer sentiment and will provide car makers with yet another reason to produce fewer cars in Japan.

Chubu Electric Power (9502.T) agreed on Monday to close its Hamaoka plant in central Japan, raising concerns over the steady supply of power to its region, which is home to Toyota Motor Corp (7203.T) and other major manufacturers.

The shutdown was requested by the government, which singled out Hamaoka as particularly vulnerable to a major earthquake and tsunami, after the 9.0-magnitude quake on March 11 triggered a nuclear crisis in the northeast.

Output disruptions may not be large enough to delay the economic recovery nationwide because Chubu is taking steps to meet peak summer demand by boosting thermal energy and securing electricity from another utility in western Japan.

But in the longer run the lack of clarity about how the government's energy policy might change following the March 11 disaster could tempt Japanese manufacturers to move more production overseas and discourage private consumption.

"We can rely on thermal power in the short term, but this raises costs and emissions," said Yasuo Yamamoto, senior economist at Mizuho Research Institute.

"In the future, we're not sure what the government wants to do. The longer that uncertainty about the power supply continues, the more companies will start thinking about manufacturing overseas."

The Hamaoka plant, located about 200 km (120 miles) southwest of Tokyo, accounts for about 15 percent of its electricity output. Chubu in turn provides power to half of the 18 plants that make Toyota's vehicles in Japan, and all four of Suzuki Motor Corp's (7269.T) domestic car and motorcycle factories.

The coverage area also includes other auto plants including those of Honda Motor Co (7267.T) and Mitsubishi Motors Corp (7211.T), but Toyota is most vulnerable given its heavy ratio of cars made domestically.

Toyota and Honda have been forced to operate at about half the levels planned before March 11 due to the shortage of components. They have forecast a return to normal production levels by the end of this year.

The Chubu region also includes a concentration of manufacturers in the flat panel display and semiconductor industries, such as Sharp Corp's (6753.T) Kameyama LCD factory and Toshiba Corp's (6502.T) Yokkaichi semiconductor plant.

Toyota, Suzuki and other car makers said they had no comment on how they would cope before Chubu Electric explains how it plans to make up for the power shortfall.

Replacing nuclear power with that produced by conventional thermal plants could increase electricity costs, but those make up only a small portion of automakers' costs, argues Nomura Securities auto analyst Masataka Kunugimoto.

What matters more, analysts say, is doubts about reliability of power supplies that could give automakers another reason -- in addition to a strong yen and cheaper labor abroad-- to shrink production volumes in Japan.

"This raises a question of how you're going to split your domestic and overseas production," said Koji Endo, senior analyst at Advanced Research Japan.

Toyota and Nissan have publicly committed to a minimum level of domestic production to keep Japan's tradition of manufacturing alive, but questions surrounding energy policy could force a rethink, Endo said.

The shutdown's impact on households could be more direct and immediate. Power cuts or a rise in electricity bills could force households served by Chubu Electric to save more energy or spend less on everything else, damaging sentiment already depressed by radiation leaks from the Fukushima plant in the tsunami-ravaged northeast.

Private consumption accounts for more than 50 percent of gross domestic product and Japan's limping economy badly needs consumer spending to hold up.

"Chubu Electric is likely to come up with a campaign to save power, which could depress private consumption," said Takuji Okubo, chief economist at Societe Generale Securities.

"Companies should be able to cope, but weak consumer sentiment could become a national phenomenon."

Source;
http://www.autospies.com/news/Closure-Of-Another-Power-Plant-May-Force-Auto-Production-Out-Of-Japan-63740/

Honda to Limit Orders of Japan-Built Cars, including the Civic

Due to the Japan earthquake and tsunami disaster, shortage of new vehicles possible until end of year
BY: Kristin Craik

Honda announced today the company’s overall production volume will remain significantly reduced throughout the summer months. Although most of Honda’s vehicles are made in North America, overall production is expected to normalize sometime near the end of 2011.

This move comes as a reaction to service interruptions at Honda’s Japanese plants, which were severely affected by the Japan earthquake and tsunami disaster. This is detrimental to vehicle production because of a few critical parts supplied from Japan. Most of Honda’s Japan-based parts suppliers have resumed production and Honda is working hard with a few suppliers that are not yet back to production capacity.

Honda has a few popular car models affected by this situation. The new 2012 Honda Civic will have significantly reduced levels throughout the summer months. The fall launch of the 2012 CR-V will be delayed at least by one month. Only a limited amount of Japan-built vehicles will be available for the remainder of the year. Those models speculated to have limited availability are the Honda Fit, CR-Z, Civic Hybrid, Acura TSX, Acura TSX Wagon, and the Acura TSX RL.

Additionally, due to a shortage in supply of Japan-sourced paint pigment, certain colors of vehicles will also be in short supply.

Source;
http://www.businessreviewcanada.ca/sectors/automotive/honda-limit-orders-japan-built-cars-including-civic

WSJ: Honda Motor:Expect Domestic Plants To Return To Normal By Year-End

TOKYO (Dow Jones)--Honda Motor Co. (7267.TO) said Monday that it expects its domestic auto plants to return to production levels planned before the March 11 earthquake by the end of the year.

The car maker's domestic plants will remain at half the initially planned volume until the end of June, though production levels after July are still unclear and will depend on parts supplies. The outlook for overseas factories also remains uncertain, Honda said.

Plants in North America, the U.K., Turkey and the Philippines are operating at 50% of their initially planned levels, while the company has also reduced output volumes at factories in China and Thailand, the car maker said.

The quake and tsunami disrupted the company's parts supply chain and a parts shortage has kept production at reduced levels.

Toyota Motor Corp. (7203.TO) said last Friday that it doesn't expect its domestic and overseas factories to be back to normal until November at the earliest.

Source;
http://online.wsj.com/article/BT-CO-20110424-702114.html

Honda altering production schedule in Alliston

Reducation expected to continue until May 6
By Marg. Bruineman, the Barrie Examiner

Reduced daily production levels at Honda Canada's Alliston facility has been extended as a result of a parts shortage from the earthquake-ravaged Japan.

"Production adjustments continue until May 6, although adjustments vary," said Honda's Lori Van Valkenburg in Alliston. "All associates have the opportunity to work their entire shift and work is being provided for them."

They also have the option of taking vacation time or time without no pay with no penalty.
On Monday, she said, associates worked six hours in production in the weld department in Plant 2.

But the expectations are that everything will return to normal after that.

"We anticipate that additional production adjustments will continue after that date," the company announced in a press statement.

The car builder has reduced the number of cars it builds as a result of last month's devastating earthquake and tsunami in Japan. The natural disaster, which has claimed about 14,000 lives, impacted both the car builder and its suppliers in Japan.

Most of the cars supplied to the North American market are built in North America. And a majority of the parts are sourced here.

About 4,200 people work at Honda Canada's Alliston facility, which has two car-building plants and an engine plant.

The bulk of production are Honda Civics (sedan, coupe, and Si sedan & coupe) along with the Acura MDX, Acura ZDX, Acura CSX.

But some of the parts are shipped in from Japan, where several companies are struggling to get back to production. As a result, there's limited supply of parts available for car building in Alliston.

Honda's car building plants in Japan all resumed limited production last week, operating at about 50% capacity.

Source;
http://www.thebarrieexaminer.com/ArticleDisplay.aspx?e=3080274

Honda Canada Ordering Delays

Well, the fallout from Japan's disaster is official, incoming units have been delayed indefinitely. We normally have about 9-12 pages of incoming units and we are now down to about 2 pages of stock.

Incoming 2012 Honda Civic's have been taken right out, so I am not sure if Honda will be delaying the launch date of April 22nd, 2011, although I do know that some dealerships in the US have

CRV's are about the only thing that I think dealerships with have in adequate stock.

Source;
Honda Canada

Nissan, Honda Better Positioned Than Toyota After Japan Quake

Moody’s says that this month’s triple disaster of earthquake, tsunami, and nuclear crisis in Japan will not result in wholesale rating changes for Japanese automakers, but its aftermath will weaken the issuers’ operations and financial performance at least through the first half of fiscal-year 2011, ending next March.

Tadashi Usui, the lead author of the report and a Moody’s vice president in Tokyo, says, “To a large extent, the financial health of our rated Japanese automakers before the disaster determines their vulnerability: Toyota (TM) and Yamaha were less well positioned in their ratings and thus are more vulnerable, Nissan (NSANY.PK) and Honda (HMC) are better positioned, and Isuzu is in the middle of the pack.”

Usui adds, “For example, Toyota had been trying to recover after widespread product recalls in 2010; whereas, Nissan’s performance had been improving and was on review for possible upgrade.”

Usui says, “None of these companies have assembly plants that experienced lasting direct damage from the earthquake or tsunami.” He adds, “However, the indirect effects of power shortages and rolling-black outs, disruptions to supply chains, and staffing issues represent a more serious problem.”

A contributor to the report, Michael Mulvaney, a managing director for Moody’s in New York, adds adds, “Problems at geographically dispersed second- and third-tier suppliers may be severe, and for critical parts, the added costs of finding alternative sources of supply could shave 1% to 2% from automakers’ margins.”

Mulvaney says, “We expect Japanese automakers’ full-year revenues for the coming fiscal year to at best show low single-digit growth as overseas markets help to offset weakness in the domestic Japanese market in the first half of the year.”

In a separate report Moody’s sees no material threat tothe ratings of Europe-based automotive suppliers, which have limited direct exposure to the consequences of the disaster:

However, we believe that they will feel ripple effects in the global supply chain as original equipment manufacturers (OEMs) reduce output in Europe and North America. Although OEMs and suppliers worldwide are exploring alternatives to supply shortages caused in Japan, we believe it will take some time to realign the supply chain where necessary.

Once this has happened, we expect at least some of the lost production volumes to be recovered. We expect the disaster to negatively impact revenue and earnings, primarily in Q2 2011. In addition, halts in OEM production might impact working capital consumption. However, we estimate that the impact on the credit metrics of Europe-based automotive suppliers will only be temporary.

Source;
http://seekingalpha.com/article/261141-nissan-honda-better-positioned-than-toyota-after-japan-quake

Honda to cut output at U.S., Canadian auto plants

DETROIT (Reuters) - Honda Motor Co (7267.T: Quote) will cut production at its U.S. and Canadian automotive plants starting Wednesday due to disruptions in the supply of auto parts after the Japanese earthquake more than two weeks ago. The temporary changes to the production schedule will vary plant by plant based on the availability of certain parts, Honda spokesman Jeffrey Smith said. He declined to detail the changes in production at individual plants. The automaker operates plants in Canada and three states in the United States. Honda relies on North American suppliers for more than 80 percent of the parts it uses to build vehicles in North America. Honda has suspended production at its two plants in Japan until at least April 3. Smith said most of the company's Japan-based parts suppliers have resumed production or are ready to start. "This is a very fluid situation," Smith said. He added: "We are working with a few suppliers who have yet to resume production to reestablish operations and at the same time, we are evaluating additional sources for some parts." The March 11 earthquake, tsunami and nuclear crisis in northern Japan have left the global auto industry struggling to manage a ripple effect across its production and supply base. Earlier Tuesday, Toyota Motor Corp (TM.N: Quote)(7203.T: Quote) told its dealers to curtail orders of certain replacement parts to ensure an adequate supply. Source; http://ca.reuters.com/article/businessNews/idCATRE72S74M20110329

The Most Devastating Footage of Japans Tsunami

Honda Suspends Dealer Orders on Japan-Built Cars

After Mazda announced last week that it would halt orders on U.S. deliveries of all Japan-made cars, Honda has now decided to follow a similar action. Informing dealers that they can no longer order Japan-build cars, retailers will be forced to move only what is on their lot until the Japanese supply chain can be mended.

Vehicles affected by the order include hybrid models like the CR-Z, Insight and Civic Hybrid, as well as some CR-V models (many of which are also build in North America). The Acura luxury division has also been affected, with the TSX and RL also made in Japan.

With current dealer inventories, this shouldn’t pose a product shortage unless the delay is lengthy.

Other Japanese automakers, including Mitsubishi, Nissan and Toyota, have yet to announce any such supply chain issues.

Source;

http://www.autoguide.com/auto-news/2011/03/honda-suspends-dealer-orders-on-japan-built-cars.html

Report: Japan will affect all automakers

Alisa Priddle / The Detroit News

Every major automaker will be affected by the disaster in Japan by mid-to-late April, according to a report released today by automotive forecasters IHS Global Insight of Northville.
"It is not a matter of if, but when," said Michael Robinet, director of Automotive Forecast, in an analysis of the impact on the auto industry of the earthquake and subsequent tsunami in northern Japan. The damage halted domestic vehicle production and affected the supply chain, which is causing disruptions at plants around the world that rely on Japanese-sourced parts.

The IHS analysis concluded that light vehicle output in Japan is expected to be impacted by about 335,000 vehicles by Friday and that figure could be in the 450,000 range by the end of March. That is based on a loss of about 37,000 cars and trucks a day if all Japanese assembly plants are affected.

Toyota Motor Corp. and Nissan Motor Co. are gingerly resuming production of components for overseas plants and hope to restart vehicle assembly plans in Japan later this week.

Some of the most fuel-efficient vehicles offered by Japanese automakers are only built in Japan. As supplies diminish of vehicles such as the Toyota Prius hybrid, average transaction prices for some models are starting to creep up and incentives are likely to evaporate, said Aaron Bragman, IHS automotive analyst, in a separate report also released today.

TrueCar.com says prices of Japanese models in the U.S. are rising already, with the Prius up $169 per vehicle, on average, in the past week in response to the supply crunch, Bragman notes.

"If the supply of imported Japanese fuel-efficient vehicles cannot be restored quickly, an opportunity may arise for well-placed competitors to start stealing U.S. market share from Japanese automakers," Bragman said.

Among the well-situated is Ford Motor Co., which has made fuel-efficiency a priority and has a number of new models that get 40 miles per gallon. General Motors Co. also has new small vehicles as well as the Chevrolet Volt plug-in hybrid. Hyundai Motor Co. also has a lineup of strong contenders.

"The initial estimates are that this could be a protracted shutdown of the Japanese industry," Bragman said. In addition to issues with vehicle production and parts supply, there are rolling blackouts because of damage to the electric power grid and a nuclear disaster in addition to other infrastructure damage as well as port and shipping issues and the loss of workers.

Robinet said it could take seven weeks of full production, with overtime, at a facility to make up for one week of lost production.

But competitors will only be able to fill any voids created by a shortage of Japanese models if they have the parts to keep their own assembly lines running as well.

So far, lost volume outside Japan is only about 10,000 vehicles, according to Robinet. That includes General Motors Co.'s truck plant in Shreveport, La., which suspended work because of parts shortages.

The Japanese-made components most affected include semi-conductors, integrated circuits, sensors and LCD displays, but IHS said shortages also may be felt in resins and synthetic rubber in the next few weeks. And the quake zone is home to powertrain parts such as gears and clutch components. Specialty materials such as silicon and certain types of glass and metals could also run short, Robinet forecasts.

Source;
http://www.detnews.com/article/20110321/AUTO01/103210409/1020/Report--Japan-will-affect-all-automakers

Consumer Reports: Mythbuster: Can cars imported from Japan be radioactive?

As Japan struggles to emerge from the recent earthquake and subsequent tsunami, and faces further potential disaster from the damaged Fukushima Daiichi nuclear power complex, the auto industry is wrestling with how to cope with the enormous logistic challenges these tragedies have created. Japanese automakers and their suppliers have suspended production, and it may be months before things are fully back up to speed. As the world waits to see what happens next, from when rebuilding the ravaged nation can begin to how its recovery could impact markets, some consumers have pondered, are there risks from cars imported from Japan being radioactive?

In a word, no.

The vast majority of factories are located well outside the evacuation range surrounding the Fukushima Daiichi complex. Automakers report they are taking precautions to ensure their factories, components, and staff are protected. Likewise, they will ensure that vehicles meet safe levels for radiation before distributing.

"Toyota will take any necessary steps to ensure the cars we deliver to customers are safe in every way," said Javier Moreno of Toyota Communications. He stated that the majority of Toyota Motor Corporation's operations in Japan are located about 240 miles southwest of the nuclear power plant and no unusual radiation activity has been detected.

We spoke with several companies, all of which have been working to protect their workers and consumers, while rebuilding their businesses. The sentiments expressed by the automakers were similar, though clearly some were harder hit than others.

"We are evaluating the situation very carefully, of course, safety is our number one concern," said Jeffrey Smith of Honda Corporate affairs. He added that the nearest port to the impacted area that Honda uses is about 125 miles away. Honda had 17 employees injured in the Tochigi area during the earthquake, plus an associate killed at an R&D facility.

Beyond the safety measures in place in Japan, consumers are further protected by U.S. Customs and Border Protection (CBP), an agency focused on preventing terrorists and weapons from entering the United States. Among its tools, the CBP uses sensitive, large-scale Radiation Portal Monitors (RPM) to scan all maritime cargo and mail arriving from Japan. In addition, agents use a wide range of technologies, including radiation isotope identifiers, to scan people, vehicles, and cargo containers. The radiation isotope identifiers are hand-held devices that can detect gamma and neutron emissions from radioactive sources, including nuclear, medical, and industrial isotopes. With hundreds of such devices in the field, any car or other product carrying an unsafe level of radioactivity would be discovered and halted at the more than 140 Border Patrol stations and more than 150 ports of entry.

As one would expect, the CBP tells us that they are monitoring developments in Japan carefully and specifically assessing the potential for radiological contamination associated with the ongoing impact of the earthquake and tsunami to Japan's nuclear facilities.

There are many valid concerns surrounding the crisis in Japan, including the human toll, cultural impact, and market forces, but radioactive consumer goods is not one of them.

Learn what you can do to aid Japan (via CNN), and donate to the American Red Cross.

—Jim Travers and Jeff Bartlett

Source;
http://blogs.consumerreports.org/cars/2011/03/mythbuster-can-cars-imported-from-japan-be-radioactive.html

Driver films moment his car is engulfed by tsunami

Honda reveals earthquake aid plans

Honda's relief efforts to deal with the aftermath of the earthquake and tsunami disaster announced

After suffering damage to some factories including a collapsed wall at its R&D facility in Tochigi where one employee was killed Honda has revealed that many of its plants in Japan will remain closed all this week.

As well as leading to the death of a 43 year old male employee, the damage at Tochigi is reported to have caused injuries to 30 other Honda workers. Now Honda has revealed its plans to cope with the aftermath of the earthquake and tsunami.

The firm's full release is below:

TOKYO, Japan, March 14, 2011 - Honda would like to express its deepest sympathy and condolences to the victims of The 2011 Off the Pacific Coast of Tohoku Earthquake in northeastern Japan and our sincere hopes for the earliest possible relief and recovery of the affected areas.

Considering the current situation of the nationwide recovery efforts in Japan, Honda has decided the following:

-As of March 14, all production activities are suspended at the following Honda plants: Sayama Plant at Saitama Factory (Sayama, Saitama), Ogawa Plant (Ogawa-machi, Hiki-gun Saitama), Tochigi Factory (Moka, Tochigi), Hamamatsu Factory (Hamamatsu, Shizuoka) and Suzuka Factory (Suzuka, Mie).

-From March 15 through 20, Honda will suspend all production activities at its plants listed above as well as at Kumamoto Factory (Ozu-machi, Kikuchi-gun, Kumamoto).

-From March 14 through 20, Honda will suspend regular operations at all Honda facilities in the Tochigi area, where damage was more serious, (including Tochigi Factory, Honda R&D Co., Ltd.

-Automobile R&D Center (Tochigi) , Honda Engineering Co., Ltd., etc.), and focus on the recovery of each operation. Honda associates will not come to work during this time.

With the hope to contribute to the earliest possible relief and recovery of affected areas, Honda will provide the following aid:

-300 million yen toward the relief and recovery effort.

-A total of 1,000 generators (gasoline-powered and home-use gas canister-powered), along with 5,000 gas canisters. Honda also will dispatch its staff to explain how to use the donated generators.

Honda will cooperate to the electricity conservation efforts and the rolling blackout, prioritizing the relief and recovery of affected areas.

Honda decided the following regarding its recruiting activities so that victims of the earthquake can focus on recovery.

Prospective associates, who are scheduled to join the company in April, can choose to delay their first day of work by up to two months if they or their families are affected by the earthquake.

For those who have applied for next year's recruiting process starting in April of this year (associates who would join the company in April 2012) from the affected areas (six prefectures in Tohoku areas and Ibaraki prefecture), Honda will ensure that the testing/interviewing of those applicants will be conducted in June or later. More details will be posted on the recruiting section of the Honda website in April.

Source;

http://www.visordown.com/motorcycle-news--general-news/honda-reveals-earthquake-aid-plans/17489.html

Japan’s carmakers halt domestic operations

By John Reed, Motor Industry Correspondent
Published: March 14 2011 13:00 Last updated: March 14 2011 13:00
Japan’s four biggest carmakers have said they are suspending production at their domestic plants through to at least Wednesday to cope with the after-effects of Friday’s earthquake and tsunami.

Honda, Japan’s second-largest carmaker, said on Monday that it was halting domestic production for a week and that damage to its suppliers’ plants might disrupt its UK production.

The announcement was an early sign of the disaster’s potential knock-on effect on the global supply chain in one of the world’s largest industries. Toyota, Nissan, and Mitsubishi Motors also extended shutdowns of their plants in order to assess and deal with damage from the quake.

Honda on Monday said that it had shut down its plants to check safety, power supply and infrastructure issues, along with the state of its local suppliers.

Honda said that it had 113 suppliers around the area in north-east Japan where the main tremors from the earthquake were felt. The carmaker said that it had been in touch with 44 of them, but was still trying to contact the remaining 69.

A UK spokesman for Honda said there were “potential supply issues” at its car plant in Swindon, England, where it makes its CR-V sport utility vehicle, its Jazz small car, and its Civic mid-size model.

“There will be a knock-on effect for car production in the UK, but we don’t yet know what it is,” he said.

Honda said that it had established emergency co-ordination centres in Swindon and at its plant in Tochigi in Japan in order to liaise on business issues concerning its supply of components and the well-being of its employees.

Toyota, Japan’s and the global car industry’s biggest producer, on Monday said that a shutdown already planned for Monday at all of its Japanese plants – including those of its Hino and Daihatsu subsidiaries – would be extended through to Wednesday.

The company makes some of its most popular models – including the bulk of its Prius hybrid model and Lexus luxury marque’s cars – in Japan.

Toyota said that the current three-day halt to production would not immediately affect its overseas operations. “The current production stop is for three days”, said a Toyota spokesman based in Brussels. “As such this doesn’t have an impact outside Japan, but we need to assess further.”

Nissan, Japan’s third-largest carmaker, said that it would halt operations at its Oppama, Kyushu, Shatai, and Yokahama plants south of Tokyo until Wednesday and at its Tochigi and Iwaki plants north of Tokyo until Friday.

The company also said that it would do its utmost to support “restoration activities” in Japan, including by conserving electricity usage in all of its activities.

Mitsubishi said that it was suspending plant operations on Monday and Tuesday to check safety at its suppliers. The producer’s main production hubs are located in Japan’s Aichi, Gifu, and Okayama prefectures, and were not affected by the earthquake.

However, it said that some of its suppliers had reported damage.

Japan’s car industry is one of the world’s largest. North-eastern Japan has become a major car-production centre in recent years, with Toyota, Honda, Nissan and operating plants there.

Most global carmakers, including Japan’s, produce and source parts for most of their cars in the regions where they build them.

However, Japan’s producers in particular are known for producing some of their models destined for export locally in order to preserve jobs and expertise at home in the face of declining domestic demand for cars.

Source;
http://www.ft.com/cms/s/0/8d5f631e-4e2a-11e0-a9fa-00144feab49a.html#axzz1Ga6cJOuQ

Canada to lose out on short-term trade while Japan recovers

TORONTO - Canada will feel the economic impact of the powerful earthquake and huge tsunami that swept away everything in its destructive path in Japan, but the effects should be short lived, experts say.

They suggest Canada stands to lose out on short-term trade as Japan focuses on recovering from the 8.9-magnitude tremor Friday — the most powerful earthquake in the area in nearly 1,200 years.

Japan imported about $9.2 billion of Canadian goods last year, including wheat, lumber, coal and minerals used in manufacturing.

But with several Japanese factories shut down following the disaster, including those of automakers Toyota and Honda, the focus will be on recovery rather than producing cars or other goods like electronics, predicts Tim Richardson.

Richardson, former head of the now-defunct Canada-Japan Trade Council and now a professor at the University of Toronto, said Japanese business executives "will be told in emails from head office to be very concerned about expenditures."

"The Japanese companies will not be producing their manufactured products that require the constant imports," he said.

The fallout from the 8.9-magnitude quake and the seven-metre-tall wave that swept over parts of Japan, will also likely affect Canadian banks, software and telecommunications companies that work with the exporters, he said.

But Richardson said Canada has a good reputation in the lumber and construction industries and exports will bounce back as Japan rebuilds.

Sherry Cooper, chief economist at BMO Financial Group, said the disaster an ocean away might draw more foreign investment into Canada, reducing the impact of the lower trade figures.

"Canada will continue to be seen as a safe haven. We are truly an oasis of calm in a world that is battered by both natural disasters and financial disasters. On a relative basis we continue to be performing very well," she said.

She added that Japan buys a fair amount of Canadian products, but the number is small compared to the U.S., where Canada sells 80 per cent of its exports.

"It's certainly meaningful but it's not going to push our economy into recession," she said, adding that the Japanese disaster in addition to the political turmoil in the Middle East, and rising food and oil prices will ultimately hit Canadian wallets.

"But as we see these developments continue...we can't help but be impacted. Consumers are feeling the pinch."

Both Cooper and Richardson cautioned that the extent of the economic impact in Canada won't be clear for days because the quake happened on a Friday evening and it is not yet clear how much damage has been sustained by Japanese infrastructure.

The northern city of Sendai, which was close to the epicentre of the earthquake, is a major transportation hub for the country.

Source;
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b6218378&page=2