TOKYO (Dow Jones)--Toyota Motor Corp. (7203.TO) and some other major Japanese auto makers extended halts on local
vehicle production through next week but some automotive plants began to slowly turn the engines back on after
suspending operations in the wake of last week's destructive earthquake.
Toyota said Wednesday it will continue to suspend all auto assembly production in Japan until Tuesday as it is working
to procure parts and while some employees were still unable to return to work.
But in a sign that operations could soon return to normal, Toyota said it would resume production of replacement parts
at seven plants in Japan to supply for the domestic market from Thursday.
These plants will also start production of parts to supply to Toyota's overseas factories from Monday.
The world's largest auto maker by sales had earlier suspended production at all its 12 factories in Japan through
Wednesday.
Most of Japan's auto makers halted domestic production after Friday's massive earthquake and ensuing tsunami as they
grappled with supply shortages, damaged facilities and rolling power outages. Uncertainties over the procurement of
supplies and continued disruptions wrought by the disaster and an ensuing nuclear crisis are still holding up some
manufacturers from resuming full production.
Suzuki Motor Corp. (7269.TO), which had halted operations through Wednesday, said it will continue to suspend
production until Monday joining Honda Motor Co. (7267.TO), Mazda Motor Corp. (7261.TO) and Isuzu Motor Ltd. which are
keeping their domestic plants closed through at least Sunday.
Meanwhile, Nissan Motor Co. (7201.TO) said Wednesday that it will resume part of its production in Japan Thursday and
Friday. The car maker said it will run output lines at two of its domestic auto assembly plants on those two days by
using remaining parts. But operations at the two plants from Saturday are yet to be decided, Nissan said.
Operations at three other vehicle assembly plants in Japan, including a damaged plant located in Tochigi close to the
quake-struck area, will be halted until Sunday, Nissan said.
The car maker expects to take even longer for an engine plant in the Fukushima Prefecture -- even closer to the
quake-hit area and the site of a troubled nuclear power plant -- to restore its operations.
Mitsubishi Motors Corp. (7211.TO), which had also suspended operations for Monday and Tuesday, resumed domestic
production Wednesday and planned to also operate its three plants Thursday.
Mitsubishi Motors has said it will decide whether to continue production from Friday, depending on its ability to
procure sufficient parts.
Toyota's auto part plants resuming operations are its Honsha, Kamigo and Hirose plants in Toyota city and Miyoshi,
Miyouchi,Shimoyama and Kinuura plants in Aichi Prefecture, central Japan.
These factories produce engines, hybrid system parts, transmission/engine-related parts, power train-related
suspension cast/machined parts, electric control devices among other parts.
Earlier, Bridgestone Corp. (5108.TO), one of the world's largest tire makers, said it would resume production at three
of its Japanese plants Wednesday and plans to use power generators to keep those factories running amid the country's
rolling blackouts.
The tire maker said its Tochigi, Nasu and Kuroiso factories will restart after a safety team determined that none of
the facilities were damaged. The plants produce a variety of car, truck, bus and motorcycle tires.
Bridgestone's Tokyo factory resumed production Tuesday, the company said in a statement. Tire shipments are also
expected to begin at all the plants on Friday. Bridgestone said production of bus and truck tires are a priority since
they will be in large demand in the devastated areas.
The global auto industry is closely monitoring what is happening in Japan since any major disruption in part
shipments, such as tires, has the potential of shutting down plants around the world.
The auto industry operates on just-in-time delivery, meaning parts arrive at plants hours before they are need on the
production line. The approach saves auto makers money by keeping inventory off their factory floors, but leaves them
vulnerable amid part flow disruptions.
Toyota dealerships in the U.S. have expressed concerns about the supply of Prius hybrids, which are made in Japan. The
recent surge in gasoline prices has driven demand for the car in the U.S., and some dealers were running out of stock.
The Automotive Components Manufacturers Association of India Wednesday said that India's auto parts makers usually
stock critical components for two to four weeks' requirements and that the industry body was hopeful of things
normalizing before that.
"There can be an indirect impact after four weeks. If auto makers don't get the components they buy directly from
Japan, then it can stall manufacturing operations and impact Indian parts makers as well," Vinnie Mehta, executive
director at the industry lobby group, told Dow Jones Newswires.
-By Yoshio Takahashi, Dow Jones Newswires; 813-6269-2791; yoshio.takahashi@dowjones.com
-Nikhil Gulati in New Delhi and Jeff Bennett of The Wall Street Journal contributed to this article.
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