2010 Toyota Iv W/ Navigation on 2040-cars

Auto blog

Post-earthquake, Toyota prepares to reopen some plants in Japan

Toyota will restart vehicle production at most of its closed factories in Japan next week, but the factories that build the Mirai and many Lexus models will remain closed through at least April 28 and possibly longer. The earthquakes around the city of Kumamoto on the island of Kyushu forced the automaker to stop most of its assembly throughout the country due to a lack of parts supply. Toyota will reopen the plants in phases from April 25 to 28. However, the Motomachi factory with its LFA works, which makes the Mirai, and the Miyata factory will remain closed. These sites also build the Lexus NX, RX, ES, GS, and CT, according to Toyota. The automaker didn't say when production would begin again or how this would affect vehicle supply. "In the update, we received this morning from TMC, they said that at this stage it is too soon to tell what the impact on production will be, so we can't say yet whether there might be vehicle shortages in the US," spokesperson Aaron Fowles told Autoblog. While the quakes were focused on Kyushu, they damaged Aisin Seiki factories, which supplied parts to Toyota plants across the country. The automaker worked with its partner to import the necessary components from China and Mexico, and Aisin started moving molds from the damaged plants to operational ones in Japan, which gets production under way sooner. Automotive News Europe estimates the week of lost production cuts total assembly by 90,000 vehicles. It could cost Toyota the equivalent of $458.2 million to $641.5 million. The company could make up some of the losses through overtime. Toyota says these plans are subject to change because on ongoing tremors in the region, which could cause more damage. Reuters reported there was a magnitude 5.5 aftershock in the Kumamoto area on April 19. So far, the quakes have killed at least 47 people and around 100,000 people have moved to evacuation centers. Toyota to Restart Production on Vehicle Assembly Lines in Japan from April 25 Apr. 20, 2016 Toyota City, Japan, April 20, 2016-Between April 25 and 28, Toyota will restart production on most of its vehicle assembly lines in Japan. On April 17, Toyota announced that, due to parts shortages resulting from the severe earthquakes that struck Japan's island of Kyushu last week, production would be suspended on almost all of its vehicle assembly lines in stages between April 18 and 23.

Kayaba, Sumitomo to pay millions for price-fixing in US

Kayaba Industry Co, which does business in the US as suspension parts maker KYB, and Sumitomo Electric Industries are facing payments in the millions to settle price-fixing cases about the components that they make. As part of the Department of Justice's ongoing crackdown of price fixing in the auto industry, KYB agreed to pay $62 million and pleaded guilty to conspiracy to set the cost of shock absorbers from the mid '90s through 2012. The company allegedly worked with co-conspirators to keep the cost of the parts high, and those components then made it into vehicles from Honda, Kawasaki, Nissan, Subaru, Suzuki, and Toyota. "Any collusive agreement among competitors to restrict price competition undercuts our free enterprise system and violates the law," said Carter M. Stewart, US Attorney of the Southern District of Ohio, in the DoJ's announcement. Over the past few years, the DoJ has brought cases against 37 parts suppliers and 55 executives, leading to over $2.6 billion in fines. The investigations haven't always been so successful – some of the Japanese execs fled from the US to avoid prosecution. Critics allege that price fixing is simply how business is done. According to Automotive News, Sumitomo Electric Industries is also facing a $50 million settlement in a civil lawsuit that's related to price fixing of parts like wiring harnesses and heater control panels. The plaintiffs include owners and dealers that purchased vehicles with these parts. The company asserts that the violations are from before 2010, and it now has different process in place to avoid further violations. KYB Agrees to Plead Guilty and Pay $62 Million Criminal Fine for Fixing Price of Shock Absorbers Kayaba Industry Co. Ltd., dba KYB Corporation (KYB) has agreed to plead guilty and to pay a $62 million criminal fine for its role in a conspiracy to fix the price of shock absorbers installed in cars and motorcycles sold to U.S. consumers. According to charges filed today, KYB conspired from the mid-1990s until 2012 to fix the prices of shock absorbers sold to Fuji Heavy Industries Ltd. (manufacturer of Subaru vehicles), Honda Motor Co. Ltd., Kawasaki Heavy Industries Ltd., Nissan Motor Company Ltd., Suzuki Motor Corporation and Toyota Motor Company, including their subsidiaries in the United States.

10% of Toyota China dealers may drop due to losses

News about the auto industry in China is usually positive thanks to booming sales and an ever-increasing number of factories across the country. But in some cases, it appears that the dealers with the job of actually selling all of those vehicles are having trouble finding buyers. The result is cars piling up on lots and showrooms resisting against automakers. Japanese automakers already face a tough road to success in China, but the FAW-Toyota joint venture is especially struggling this year. According to Bloomberg, as many as 10 percent of the dealers might have to close or stop selling the brand because they just can't make money selling the vehicles on their lots. Also, 95 percent of the showrooms are reportedly losing money. The issue facing FAW-Toyota sellers is mostly a case of supply and demand. Automakers in China mandate the number and types of vehicles that dealers sell. However, the inventory from all makes is at its highest level since August 2013, according to Bloomberg. The situation leaves dealers with packed lots, and cars often require discounts to move. Making matters harder is that showrooms have annual sales targets, which are linked to bonuses. This money can account for over half of the sellers' annual profits, according to Bloomberg. The FAW-Toyota dealers are pushing back by asking Toyota for 2.2 billion yuan ($355 million) to pay for costs associated with the extra inventory. It also lowered sales targets by six percent earlier this year and has requested no increase in the numbers for 2015. News Source: BloombergImage Credit: Nelson Ching / Bloomberg via Getty Images Earnings/Financials Toyota Car Buying Car Dealers