{"id":328049,"date":"2011-03-22T01:23:36","date_gmt":"2011-03-22T01:23:36","guid":{"rendered":"http:\/\/www.ghanamma.net\/2011\/03\/22\/japan-carmakers-look-to-start-up\/"},"modified":"2011-03-22T01:23:36","modified_gmt":"2011-03-22T01:23:36","slug":"japan-carmakers-look-to-start-up","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2011\/03\/22\/japan-carmakers-look-to-start-up\/","title":{"rendered":"Japan carmakers look to start up"},"content":{"rendered":"

\n \t\t
\n 21 March 2011<\/span>
\nLast updated at <\/span>21:23 ET<\/span>
\n<\/span><\/p>\n

Japanese car manufacturers are looking to restart production after their operations were disrupted by the deadly earthquake and tsunami. <\/p>\n

Toyota Motors says it will announce plans to restart production on Tuesday. Production at Honda Motors and Mazda is scheduled to start later this week.<\/p>\n

This comes after Nissan Motors resumed work at six of its factories on Monday. <\/p>\n

However, analysts said that production will depend on the supply of parts. <\/p>\n

They said the main task will be getting the supply chain to work at full capacity, without which company production numbers could be far less than before.<\/p>\n

“A start in production does not automatically mean that they have started to work at full capacity,” said Vivek Vaidya of Frost & Sullivan.<\/p>\n

“They could be working at sub-optimal capacity” he added.<\/p>\n

Supply dependent<\/span><\/p>\n

\n\tContinue reading the main story<\/a>\t<\/p>\n

\u201cStart Quote<\/span><\/h2>\n
\n

Each supplier has to be able to reach the levels before the devastation to reach the full production plan\u201d<\/p>\n<\/blockquote>\n

End Quote<\/span>
\n\tVivek Vaidya<\/span>
\n\tFrost & Sullivan<\/span><\/p><\/div>\n

Assembling a car requires thousands of parts to be put together. These are provided by different suppliers. <\/p>\n

“Each supplier has to be able to reach the levels before the devastation to reach the full production plan,” said Mr Vaidya.<\/p>\n

The reason behind a shortfall of parts is down to each company’s efficiency plans. <\/p>\n

Most of the parts are shipped to the manufacturers a short time ahead of the assembly line requirements, analysts said. <\/p>\n

This means that most car factories have relatively low inventories, which can create shortages in supply.<\/p>\n

Balancing act<\/span><\/p>\n

As different vendors get back on track at a different pace, the supply of parts will also be inconsistent in the short to medium term, analysts said.<\/p>\n

There might be an excessive supply of parts for one model of the car, while the other models might face a shortage.<\/p>\n

According to analysts this will mean the manufacturers will have to make some tough choices. <\/p>\n

“They will have to get the product mix correct,” said Mr Vaidya.<\/p>\n

“Getting that right will be a challenge,” he added.<\/p>\n<\/p><\/div>\n<\/p>\n

Continued here:
\nJapan carmakers look to start up<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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