Autoblog

Resin shortage could snarl auto production

Jonathon Ramsey — Tue, 17 Apr 2012 08:28:00 EST

Economies of scale, globalization and production efficiencies continue to exacerbate any disruptive incident in an automaker's supply chain. The latest snafu is due to a fatal explosion at Germany's Evonik Industries, which arrested that company's ability to produce cyclodecatriene (CDT). In turn, the production of the resin Vestamid Polyamide 12 (PA-12) is threatened by the loss of CDT, one of its key components. And a crimp in PA-12 supplies threatens the manufacture of crucial components like brake-line coatings and flexible hoses.

Auto-industry analysts have described the issue as "serious," but no one, including automakers and suppliers, is sure of how grave the issue will be. Michigan-based Tier One carmaker supplier TI Automotive is hosting a conference later this month with competitors and carmakers to discuss the issue. The major car manufacturers have said they are monitoring the situation, but no disruptions have been planned for yet.

Resin shortage could snarl auto production originally appeared on Autoblog on Tue, 17 Apr 2012 08:28:00 EST. Please see our terms for use of feeds.

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Vehicle hauler shortage to threaten new car sales?

Jonathon Ramsey — Wed, 14 Mar 2012 17:58:00 EST

Filed under: Car Buying, Etc., Videos

New car sales have endured all manner of impediments since The Great Recession began in 2008, and for various reasons including everything from restricted lending by banks to strikes and Acts of God. Next up among the bugbears could be a shortage of car haulers, which were pulled from active duty when there simply weren't cars to haul.

However, with 2012 sales riding a projected wave of 15 million in sales for the year, the opposite has happened: too many new vehicles to be shipped paired with a paucity of tractor-trailers and trains to do the shipping. Estimates put the disparity between demand and supply at 1.7 million vehicles - the kind of number that could make a dent that won't buff out.

On the other hand, shipping companies are buying all the haulers they can, it's only March, and no one knows how long the superheated sales will continue. Yet even if the hauler shortage is remedied, there could be a shortage of drivers. According to Heavy Duty Trucking magazine, finding truckers to fill the drivers' seats will become more difficult since pay hasn't kept up with the economy.

Follow the jump to see the Autoline Daily report (skip to 1:18 for the car hauler story).

Continue reading Vehicle hauler shortage to threaten new car sales?

Vehicle hauler shortage to threaten new car sales? originally appeared on Autoblog on Wed, 14 Mar 2012 17:58:00 EST. Please see our terms for use of feeds.

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Nissan Murano CrossCabriolet production "significantly impacted" by quake

Chris Shunk — Sat, 04 Jun 2011 14:02:00 EST

Filed under: Convertible, Japan, Crossover, Nissan

2011 Nissan Murano CrossCabriolet - Click above for high-res image gallery

We're hearing less and less about the March 11 earthquake and tsunami in Japan and the resulting supply chain disruptions, but that doesn't mean the issues have gone away. Inside Line reports that the brand new Nissan Murano CrossCabriolet is the latest vehicle hurt by the natural disaster.

The earthquake struck Japan just as Murano CrossCabriolet production was ramping up, and as a result the automaker was able to ship only 40 to 50 vehicles to customers. That's bad news for any new vehicle fresh off a launch, but it's especially damaging to a convertible at the beginning of the summer buying season. With the production of the CrossCabriolet stalled, Nissan likely won't be able to make up volume until fall or later, and convertible sales almost always drop along with the temperature.

The Murano CrossCabriolet delay is bad news for a unique, ultra-niche vehicle that's a bit of a risk in terms of function and price. After all, there aren't many Nissan models that start at $47,190, and there no other crossover coupes with a stowable top.

Hopefully, Nissan can jump-start production of the Murano CrossCabriolet before it's too late, if only to give Nissan's topless gamble a fair shot at success.

Nissan Murano CrossCabriolet production "significantly impacted" by quake originally appeared on Autoblog on Sat, 04 Jun 2011 14:02:00 EST. Please see our terms for use of feeds.

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Honda to shift production schedules in North America

Chris Shunk — Wed, 04 May 2011 16:31:00 EST

Filed under: Japan, Plants/Manufacturing, Acura, Honda

2011 Honda Accord - Click above for high-res image gallery

Honda is continuing to adjust its production schedules in the wake of the March 11 earthquake in Japan, and the shuffling will reportedly continue at U.S. plants as well.

The plan is to run full production shifts at U.S. facilities on Tuesdays and Wednesdays from May 9 through July 1, with a single eight-hour shift added for Thursdays. With the exception of Honda's Greensburg, Indiana plant, all U.S. facilities were running two shifts prior to parts shortages. Workers at these facilities reportedly won't feel the pinch of the abbreviated production schedules either, as they will have the choice of staying home or completing training without a pay penalty.

Honda spokesperson Ed Miller reportedly told Automotive News the reason for the shift is that it's more efficient to run operations that way. The automaker likely won't make any decisions about U.S. production beyond July 1 until the situation is more clear.

On Monday, Honda announced it was suspending June and July dealer orders for the CR-Z, Civic Hybrid, Fit, Acura TSX and Acura RL. Those vehicles are built in Japan, where shortages are still severe. At this point, the Japanese automaker is expecting operations to return to normal production before the end of the year.

This is all very bad news for Honda, and it's bad for consumers as well. It appears that Honda showrooms are likely to be very short on product for an extended period of time.

Honda to shift production schedules in North America originally appeared on Autoblog on Wed, 04 May 2011 16:31:00 EST. Please see our terms for use of feeds.

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Ford reacts to Chrysler bankruptcy

Chris Shunk — Mon, 04 May 2009 08:58:00 EST

Filed under: Chrysler, Ford

Although the automotive industry has been bracing for a Chrysler bankruptcy for some time, last week's official announcement of a Chapter 11 filing still came as a shock. One of the long-held assertions about bankruptcy was that once one domestic automaker filed, the others would eventually be forced to follow suit. The other belief was that bankruptcies would hamper the supply chain, which would in turn hurt other automakers besides the other Detroit 2.

Ford is out to assure its fans and stock holders that Chrysler's bankruptcy isn't going to hamper its supply chain or restructuring efforts. While Ford has planned its way around any problems with Chrysler, the company still wants to see a speedy recovery for the Pentastar. Ford's open letter to the public is a show of support for Chrysler, but it's even more an announcement that the Dearborn-based automaker is going to be largely unaffected by its competitor's bankruptcy. Hat tip to Thomas!

[Source: The Ford Story]

Ford reacts to Chrysler bankruptcy originally appeared on Autoblog on Mon, 04 May 2009 08:58:00 EST. Please see our terms for use of feeds.

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REPORT: Toyota "war room" keeps tabs on possible supplier interruptions, stockpiled parts

Michael Harley — Mon, 27 Apr 2009 16:29:00 EST

Filed under: Plants/Manufacturing, GM, Toyota, Earnings/Financials

Fearing that a couple dozen of its U.S. suppliers could shut down production, Toyota has established a "war room" to monitor suppliers and has begun to warehouse assembly components. While the move marks a departure from the automaker's "just in time" production philosophy, a mantra that associates stockpiling with inefficiency and waste, a bankruptcy by one of the Detroit 3 could knock-out a key supplier crippling the Japanese automaker's North American factories. It is a widespread problem, as more than half of Toyota's 500 U.S. parts suppliers are also under contract to supply parts to General Motors.

The "war room" is located in Erlanger, Kentucky, at a major Toyota assembly complex. Reviews are conducted by senior executives each week to monitor the supply chain. It's the Tier 2 and Tier 3 suppliers that has the automaker most worried, as the small companies are less visible on the radar yet their closure could be just as catastrophic. To help stave off supply interruptions, Toyota has sent people to its troubled suppliers to assist their performance and help them cut costs so they will remain afloat.

[Source: Automotive News, subs. req'd | Image: WarGames, MGM/UA]

REPORT: Toyota "war room" keeps tabs on possible supplier interruptions, stockpiled parts originally appeared on Autoblog on Mon, 27 Apr 2009 16:29:00 EST. Please see our terms for use of feeds.

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Just-in-time supply lines could fall victim to financial crisis

Sam Abuelsamid — Thu, 01 Jan 2009 14:29:00 EST

Filed under: Plants/Manufacturing, Toyota

One of the key improvements in automotive manufacturing efficiency over the past three decades may soon fall victim to America's current economic turmoil. Toyota made "just-in-time manufacturing" a common term and it has since been adopted by the entire industry.

Unfortunately, in order for just-in-time to work, assembly plants need a stable supply base that can reliably deliver the right parts at the right time, every time. If a company's suppliers are in danger of shutting down due to lack of funds, they cannot reliably function without an inventory bank of parts. The net-net is that if one or more automakers goes belly up in the coming months, numerous suppliers are likely to follow that company down the drain. Since most suppliers provide parts to multiple automakers, the effects will cascade. If Toyota, Honda, Ford and everyone else have to start stockpiling parts, this will raise costs at a time when they are desperately trying to cut expenses.

Even though suppliers have tried to diversify and line up as many customers as possible, price pressures from every automaker over the past decade have put most suppliers (especially smaller ones) into a tenuous position. The interconnected nature of the industry means that everyone feels the pain, and companies like Toyota are going back to the drawing board to analyze and modify every step in the production chain.

[Source: The Detroit News]

Just-in-time supply lines could fall victim to financial crisis originally appeared on Autoblog on Thu, 01 Jan 2009 14:29:00 EST. Please see our terms for use of feeds.

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