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Kumamoto quake widens auto plant shutdowns, supply chain hit

Kumamoto quake widens auto plant shutdowns

Factory shutdowns are spreading at automakers and parts suppliers following the Kumamoto earthquake. Honda's Kumamoto plant in Ozu, Kumamoto Prefecture, was damaged, and production is seen resuming no earlier than the 17th. Delays in parts supplies are also affecting Mitsubishi Motors and Toyota Motor plants on Honshu.

Honda's Kumamoto plant is the only domestic motorcycle production base that makes motorcycles and other products, with annual capacity of 320,000 units. Operations were halted through the 7th after water leaks and flooding occurred, and the plant will then be on summer vacation until the 16th. Whether operations will restart on or after the 17th has not been decided.

Impact spreading through the supply chain

A Honda executive said, 'It is difficult to decide on operations because we do not know the full situation at suppliers.' Automobile production often keeps inventories lean, with parts makers supplying as needed. As a result, shortages of a specific part can easily spread the impact.

In this case, Aisin Kyushu in Kumamoto, which makes door parts under Aisin's umbrella, was hit. It has begun recovery work, but the timing for restarting operations is not yet clear. The company supplies parts not only to Toyota but also to other automakers, widening the impact.

Mitsubishi Motors has halted production of some models at its Mizushima plant in Kurashiki, Okayama Prefecture, because of delays in parts supplies. Nissan Motor will stop some production through the 5th at its subsidiaries Nissan Motor Kyushu in Kanda, Fukuoka Prefecture, and Nissan Shatai Kyushu in the same town.

Toyota has also suspended operations at its Tahara plant in Tahara, Aichi Prefecture, and will keep it shut through the 7th. At three plants in Fukuoka Prefecture, the shutdown period has been extended through the 5th, and the impact is spreading beyond Kyushu.

Parts suppliers also hit

Among parts makers, Astemo was hit at its subsidiary Astemo Uki in Uki, Kumamoto Prefecture, and suspended operations. Whether it will operate from the 3rd onward is undecided.

Denso has a plant in Kitakyushu that makes car air-conditioning parts and other products, and its group companies also have bases in Kyushu. About 30 of its business partners are in Kyushu; the earthquake's impact has been confirmed at one company, while 13 are still being checked.

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