Japan Sensor-Chip Shortage Hits Auto Makers

[somone]

http://online.wsj.com/article/SB10001424052748704050204576218710838251784.html

Japan Parts Shortage Hits Auto Makers
Hard-to-Find Electronic Component Made by Hitachi Causes U.S., European Production Cutbacks by GM and Peugeot
By MIKE RAMSEY And SEBASTIAN MOFFETT

A small electronic part that measures airflow to car engines is becoming a big worry for the auto industry in the wake of Japan's earthquake and tsunami.

The disaster has forced auto and parts plants throughout Japan to shut down. General Motors Co., Toyota Motor Corp. and PSA Peugeot-Citroën have cut or are making plans to curb output of thousands of vehicles in the U.S. and Europe due to concerns about a shortage of critical parts made in Japan. On Wednesday, Toyota warned employees it expects to halt some production in the U.S. and Canada as a result of shortages of parts from Japanese suppliers. "It is clear we will incur some non-production time," the company said in a memo. "The amount of non-production is still uncertain."

One part coming under increased scrutiny goes into mass airflow sensors. Made by Hitachi Automotive Systems, a unit of Hitachi Ltd., at a plant north of Tokyo that was damaged by the quake and remains shut down, the electronic part is used by about a dozen auto makers. Hitachi, which has a 60% share of the world's market for airflow sensors, said it hopes to resume operations by Saturday, but isn't sure how much of its capacity will be restored by then. The area is suffering from water and power shortages...

Production at Hitachi's Sawa automotive-systems plant in Ibaraki Prefecture has been stopped since the day of the quake, March 11. The plant makes sensors, engine control and management parts. In addition to supplying GM and Peugeot, Hitachi also makes components for auto makers including Ford Motor Co., Renault SA, Nissan Motor Co., Toyota, and Volkswagen AG...

[LARED]

1. Somewhat ironic

Japan pretty much invented "Just in Time" manufacturing and they are the ones that now are the genesis for rethinking our supply chain strategy.

[HereSince1628]

2. Yes, redundancy and available surplus are inefficient & 'idle inventory'

until your supplier suddenly and unexpectedly 86's you.