On April 7, Japan experienced a 7.4-magnitude earthquake after the magnitude 9.0 earthquake and tsunami of March 11. The impact of this natural disaster on the global automotive industry is likely to continue for some time. As Japanese parts suppliers are unlikely to fully resume production in the short term, automakers and Tier 1 parts suppliers have to look elsewhere for alternative products to address supply shortages.
According to the reporter, automakers can find alternative suppliers in a short period of time for raw materials and some components with low technological content, but it is not easy to find high-value-added component replacements such as semiconductors produced in Japan.
The automakers found some spare parts as substitute suppliers. Automakers responded quickly to the crisis of spare parts supply, and to some extent reduced the associated losses caused by strong earthquakes and tsunami in Japan. Due to the complete disruption of supply by the affected Japanese steel mills, two days after the March 11 earthquake, Honda, Toyota, and Nissan entered into an agreement with Shanghai Baosteel Group, the largest steel producer in China, and the latter were three Japanese car makers. The Chinese factory supplies steel plates for vehicles.
South Korean parts companies are also moving quickly. According to reports, Hyundai Mobis is selecting suppliers to replace Japan's parts suppliers affected by the earthquake. The company said that so far it has found a product that can replace Japanese parts, but the company declined to disclose any product information.
Although some parts produced by Japanese suppliers can be replaced by it, finding high value-added parts replacements including semiconductors and microchips is still a major problem for automakers. Most auto companies and first-class component suppliers are reluctant to admit that they are desperately contending for the supply of goods to maintain the inventory of electronic components. However, the current shortage of critical components such as microchips, engine controls, ABS, and airbags is indispensable. fact. What makes people feel even more pressure is when the Japanese parts and components companies can completely resume production.
Japan’s earthquake has caused shortages of high-value-added components and market analysts to point out that even if there is no unexpected situation, the normal operation of Japanese parts manufacturers is a long process. It is imminent for auto companies to find new suppliers. Take Nissan as an example, as many as 40 parts suppliers of the company have not fully resumed production. "Now every component company is our goal," said a Nissan spokesman. "On the first day after the earthquake, we have been looking for suitable replacement parts suppliers."
According to a study released by the American IHS company, Renesas Electronics Corp., the world's leading microcontroller supplier, lost 40% of its production capacity in the March 11 earthquake. In this case, the company's competitors (such as Freescale Semiconductor) seem to be able to easily seize new customers, but Ito's chief analyst Martofini believes that "for new customers can not be achieved in a short time." According to him, parts suppliers usually design integrated circuits specifically for automakers, and it takes some time for alternative suppliers to redesign and test these components.
Matofeny's analysis is not without reason. Keihin Corporation of Japan supplies Honda with components such as intake manifolds, engine control components, and fuel injectors. In the earthquake and tsunami, 4 of Keihin's 11 factories were damaged. The company’s spokespersons Hideki and Nagasawa stated that the currently damaged four factories can only operate at levels below 50% capacity. “Some of our suppliers have also affected production due to the earthquake, especially microchips are currently scarce, so it is too early to discuss when the company can make a comeback.†According to him, “Jinbin’s five US factories are Full-scale operation, but the production capacity is only 10% of the capacity of the Japanese factory."
Japan's spare parts companies have difficulty resuming production. The earthquake and tsunami have increased the test of Japanese auto parts suppliers. Japan’s parts suppliers, including Keihin, which has been hit hard, will face a power-limiting reality that lasts for several months. At present, the spare parts factory usually has a power outage in the daytime of about 3 hours. When the power supply cannot be guaranteed, the company has to suspend production.
According to Japanese media reports, German Bosch company is leasing generators to its Japanese suppliers to help them restart as soon as possible. However, more first-class component suppliers are trying to resume production but they are in no position. Taking Magna as an example, its two Japanese factories have resumed normal operations, but because some Japanese automakers have not yet resumed production, it is of little significance for some of Magna's factories to resume normal production.
When Japanese automakers were hit hard due to supply chain disruptions, American automakers were not spared. Ford and Chrysler suffered a shortage of paint, and GM temporarily shut down the pickup truck production plant in Shreveport, Louisiana. Sheldon Stone, the head of a consulting firm in the United States, said: "Ford and General Motors are very worried about whether suppliers of the second and third levels can supply on time, especially those who produce high-value-added components or have patented technology."
Whether or not the parts supply chain can be repaired in a timely manner affects the nerves of car manufacturers and tier one suppliers. Ford spokesperson Todson said that the company is very concerned about the repair of the parts supply chain. Bernd Bohr, chairman of Bosch, said that the shortage of electronic components is expected to be eased in the second quarter of this year, but they still need to further assess the market situation.
According to the reporter, automakers can find alternative suppliers in a short period of time for raw materials and some components with low technological content, but it is not easy to find high-value-added component replacements such as semiconductors produced in Japan.
The automakers found some spare parts as substitute suppliers. Automakers responded quickly to the crisis of spare parts supply, and to some extent reduced the associated losses caused by strong earthquakes and tsunami in Japan. Due to the complete disruption of supply by the affected Japanese steel mills, two days after the March 11 earthquake, Honda, Toyota, and Nissan entered into an agreement with Shanghai Baosteel Group, the largest steel producer in China, and the latter were three Japanese car makers. The Chinese factory supplies steel plates for vehicles.
South Korean parts companies are also moving quickly. According to reports, Hyundai Mobis is selecting suppliers to replace Japan's parts suppliers affected by the earthquake. The company said that so far it has found a product that can replace Japanese parts, but the company declined to disclose any product information.
Although some parts produced by Japanese suppliers can be replaced by it, finding high value-added parts replacements including semiconductors and microchips is still a major problem for automakers. Most auto companies and first-class component suppliers are reluctant to admit that they are desperately contending for the supply of goods to maintain the inventory of electronic components. However, the current shortage of critical components such as microchips, engine controls, ABS, and airbags is indispensable. fact. What makes people feel even more pressure is when the Japanese parts and components companies can completely resume production.
Japan’s earthquake has caused shortages of high-value-added components and market analysts to point out that even if there is no unexpected situation, the normal operation of Japanese parts manufacturers is a long process. It is imminent for auto companies to find new suppliers. Take Nissan as an example, as many as 40 parts suppliers of the company have not fully resumed production. "Now every component company is our goal," said a Nissan spokesman. "On the first day after the earthquake, we have been looking for suitable replacement parts suppliers."
According to a study released by the American IHS company, Renesas Electronics Corp., the world's leading microcontroller supplier, lost 40% of its production capacity in the March 11 earthquake. In this case, the company's competitors (such as Freescale Semiconductor) seem to be able to easily seize new customers, but Ito's chief analyst Martofini believes that "for new customers can not be achieved in a short time." According to him, parts suppliers usually design integrated circuits specifically for automakers, and it takes some time for alternative suppliers to redesign and test these components.
Matofeny's analysis is not without reason. Keihin Corporation of Japan supplies Honda with components such as intake manifolds, engine control components, and fuel injectors. In the earthquake and tsunami, 4 of Keihin's 11 factories were damaged. The company’s spokespersons Hideki and Nagasawa stated that the currently damaged four factories can only operate at levels below 50% capacity. “Some of our suppliers have also affected production due to the earthquake, especially microchips are currently scarce, so it is too early to discuss when the company can make a comeback.†According to him, “Jinbin’s five US factories are Full-scale operation, but the production capacity is only 10% of the capacity of the Japanese factory."
Japan's spare parts companies have difficulty resuming production. The earthquake and tsunami have increased the test of Japanese auto parts suppliers. Japan’s parts suppliers, including Keihin, which has been hit hard, will face a power-limiting reality that lasts for several months. At present, the spare parts factory usually has a power outage in the daytime of about 3 hours. When the power supply cannot be guaranteed, the company has to suspend production.
According to Japanese media reports, German Bosch company is leasing generators to its Japanese suppliers to help them restart as soon as possible. However, more first-class component suppliers are trying to resume production but they are in no position. Taking Magna as an example, its two Japanese factories have resumed normal operations, but because some Japanese automakers have not yet resumed production, it is of little significance for some of Magna's factories to resume normal production.
When Japanese automakers were hit hard due to supply chain disruptions, American automakers were not spared. Ford and Chrysler suffered a shortage of paint, and GM temporarily shut down the pickup truck production plant in Shreveport, Louisiana. Sheldon Stone, the head of a consulting firm in the United States, said: "Ford and General Motors are very worried about whether suppliers of the second and third levels can supply on time, especially those who produce high-value-added components or have patented technology."
Whether or not the parts supply chain can be repaired in a timely manner affects the nerves of car manufacturers and tier one suppliers. Ford spokesperson Todson said that the company is very concerned about the repair of the parts supply chain. Bernd Bohr, chairman of Bosch, said that the shortage of electronic components is expected to be eased in the second quarter of this year, but they still need to further assess the market situation.
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