automotive

Toyota, Honda, Nissan React To Quake Damage

Nissan-Headquarters-B

Automakers are saying that despite the earthquake and consequent force majeure of operations, they will likely be back online by later this week. Actually, Toyota is the only automaker in Japan with major manufacturing operations in the northern region of Japan, which is closest to the offshore epicenter of the quake.

But Nissan, Honda, and Toyota's Japan operations were all in force majeure as of Friday because of the 8.9-magnitude earthquake. Toyota closed three factories, and Honda Motor Co. has also suspended production, which could affect exports of Toyota's Yaris sedan, Scion cars and Honda's Fit small car. Toyota said it evacuated workers from several factories in the quake zone.

The biggest earthquake-related production losses are likely to be at Toyota's plants near the epicenter: the brand-new plant in Miyagi Prefecture, which makes the Yaris and has a 120,000 unit-per-year capacity, and its Kanto Auto Works plant in Iwate that also makes the Yaris, as well as the Scion XB and Scion XD cars for export. There are also Toyota-owned parts makers there.

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The company said that as of Friday morning (EST) it had established a company-wide emergency task force to "assess the situation and take initial measures," vis a vis the earthquake and tsunami that ensued.

Toyota says it has no confirmed injuries at the Tokyo head office, or at the Higashifuji, Tochigi, office, Yamanashi office, and Toyota Motor Tohoku facilities. "We are presently gathering information on Central Motor Corporation [the Miyagi plant] and Kanto Auto Works," said a company release.

Still, the automaker says it has restarted its plants in Hokkaido, Tohoku, the Miyagi Plant, and its Kanto Auto Works Iwate Plant. "We are also currently assessing the situation at our suppliers, dealers and the impact on North American import vehicles," says the company spokesperson.

Honda reportedly lost two employees at its Tochigi factory, Kanto region, near Utsunomiya. The company's 48-year-old Sayama plant, closer to the epicenter, has reportedly remained shut down, and Honda headquarters had trouble contacting its plants. The Sayama plant makes the Fit, the CR-V and the Accord, the Acura RL, and TSX for export to the U.S. The company said the factory, as well as its R&D center in Tochigi, would remain closed at least through Monday. Reportedly, 30 people were hurt and one killed when the facility's cafeteria wall collapsed.

Nissan says that despite tsunami warnings for the West Coast of the U.S., the automaker does not anticipate any immediate effect from the earthquake or tsunami on its "Americas operations, facilities, dealers or customers."

The company says its global headquarters building in Yokohama was not significantly affected. "So far, there are no reports of employee casualties and employee safety precautions are underway at all locations," said a company statement.

The automaker says small fires broke out at the Tochigi Plant and the Iwaki Plant casting facilities but have been extinguished, and two employees at Tochigi Plant suffered minor injuries. However, the Nissan Oppama plant was reportedly affected, and that factory is where Nissan makes its new electric car, the Leaf.

Nissan also reported power outages at the Nissan Technical Center in Atsugi City. "Operations after Monday, March 14, for all plants and facilities including the Global Headquarters [Yokohama City] will be decided after all assessments including suppliers, are conducted March 12.

Suzuki Motor Corporation reported it has suffered no damage to headquarters or manufacturing plants located in the Shizuoka Prefecture region; the earthquake's epicenter was 240 miles north of Tokyo and Suzuki's headquarters are in Hamamatsu City, which is 158 miles south of the city.

Airlines are waiving fees on travel changes in and out of Japan. Delta Air Lines said it is waiving change fees for customers whose travel plans might have been thrown off course by the earthquake. The company says those on Delta-ticketed flights to, from or through airports in Japan today through March 15 may make a one-time change for travel with the same origin and destination as long as new flights are ticketed and rescheduled. Delta says it has about 60 flights in and out of Narita and Haneda airports. Those flights were cancelled Friday.

United Continental Holdings said United and Continental customers can apply for a refund if their flights were cancelled because of the disaster.

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