Automakers Issue Updates On Status Following Japanese Disaster, Offer Aid

The following are updates from automakers on the effects of their plants in Japan and reports of financial aid provided by the OEMs and their employers to help with the recovery.


Toyota
Regarding Toyota's North American operations, so far the impact is limited. All 13 North American vehicle and engine plants are running normally, although overtime has been curtailed for now to assure adequate inventories of parts that come from Japan are maintained. In addition, since most parts and materials for Toyota's North American-built vehicles are provided by suppliers in North America, this helps insulate Toyota's North American plants from production interruptions in Japan.
 
Regarding dealerships in the U.S., inventories are good with adequate levels of supply.  Toyota now makes 12 different models in North America, including high-volume vehicles such as Camry, Corolla, RAV4, and Lexus RX 350, and nearly 70 percent of all Toyota and Lexus vehicles sold in the U.S. are made in North America.  Prius vehicles are built in Japan, and thus impacted more by the production halt there. For now inventory levels of the Prius at U.S. dealerships are generally still adequate.
 
Regarding battery production in Japan, while future production plans are to be determined, only one of three hybrid battery plants in Japan sustained limited damage from the earthquake. The other two plants are located in central Japan and were not affected. The company is making every effort to minimize any long-term impact on Prius availability.



Honda
Damage was widespread in the Tochigi area, where Honda has a number of operations. As of March 14, all production activities are suspended at the following Honda plants: Sayama Plant at Saitama Factory (Sayama, Saitama), Ogawa Plant (Ogawa-machi, Hiki-gun Saitama), Tochigi Factory (Moka, Tochigi), Hamamatsu Factory (Hamamatsu, Shizuoka), and Suzuka Factory (Suzuka, Mie).

From March 15 through 20, Honda will suspend all production activities at its plants listed above as well as at Kumamoto Factory (Ozu-machi, Kikuchi-gun, Kumamoto).

From March 14 through 20, Honda will suspend regular operations at all Honda facilities in the Tochigi area, where damage was more serious, and focus on the recovery of each operation. Honda associates will not come to work during this time at those facilities, including Tochigi Factory, Honda R&D Co., Ltd., R&D Center and Honda Engineering Co., Ltd.

Honda is cooperating with electricity conservation efforts and rolling blackout measures, prioritizing the relief and recovery of affected areas.

Honda has made contact with all Tier 1 suppliers in Japan and is collecting information from them regarding the status of their operations.

With the hope to contribute to the earliest possible relief and recovery of affected areas, Honda will provide the following aid: 300 million yen (approximately $3.7 million) from Honda in Japan toward the relief and recovery effort; and a total of 1,000 generators (gasoline-powered and home-use gas canister-powered), along with 5,000 gas canisters. Honda also will dispatch its staff to explain the use of this equipment.

The Honda family of companies in North America will establish special matching gift programs for their associates for donations to the Red Cross to aid the victims of the earthquake and tsunami in Japan. Donations from associates will be matched on a dollar-for-dollar basis, with no personal or corporate donation limit. Honda employs more than 29,000 associates in North America.


Subaru
As of March 16, Subaru's parent company, Fuji Heavy Industries (FHI) has announced it will continue to keep operations in Japan closed until March 20 pending supplier parts assessment and also to conserve electricity for the country. Contrary to some reports, no completed vehicles were damaged as a result of the disaster and only two body shells suffered any damage. Shipping operations in the Tokyo port were also undamaged. Subaru Indiana Automotive has cut overtime in an attempt to preserve parts supply and is to continue regular production as normal at this time.

In terms of relief funds, FHI will make a financial contribution of 50 million yen ($500,000) to the relief and recovery efforts, and FHI employees have personally contributed another 10 million yen ($100,000). FHI has donated an additional 50 million yen ($500,000) in Robin engine products of generators, lighting units, as well and construction pumps. Subaru of America will provide matching funds for dealer and business affiliate contributions up to $100,000 and double matching for employee contributions through the Subaru of America Foundation.


General Motors
GM has suspended production at Shreveport Assembly in Louisiana for the week of March 21 due to a parts shortage resulting from the crisis in Japan. GM will resume production at Shreveport as soon as possible, and at this point, there are sufficient vehicles to meet customer demand. Employees should use specified plant communication hotlines for updates about future production schedules. All other plants in North America continue to run normal operations.

The General Motors Foundation has approved an immediate $500,000 contribution to the American Red Cross relief fund to help earthquake-stricken Japan.  GM also has provided a direct web-link that employees can conveniently access from their desktop work stations to contribute personally to the Red Cross disaster fund.  This latest donation is in addition to the GM Foundation’s earlier contribution of $250,000 to the Red Cross as a supporting member of their Disaster Responder program.


Chrysler
The Chrysler Foundation, the philanthropic arm of Chrysler Group LLC, announced today it will donate $100,000 to the American Red Cross for Japan disaster relief efforts. Additionally, the Foundation will match employee and dealer Red Cross contributions up to an additional $100,000.


Renault
Renault has set up a special fund and will donate €500,000. The employees will also be given a chance to make a donation. The amount of their donation will be matched by the company. All the money will be handed over to the Red Cross, a charity with whom Renault is a partner.