Toyota And Honda Move To Stabilize Fragile U.S. Supply Chain

Toyota Motor Corp. and Honda Motor Co., Japan’s two largest carmakers, may modify their so-called “just-in-time” manufacturing system to avoid possible supplier bankruptcies disrupting production.

General Motors Corp. and Chrysler LLC are battling to restructure after winning $13.4 billion in emergency federal loans to keep them operating through March. Detroit’s woes could lead to a “supplier shock,” crippling U.S. production at Japanese and other foreign carmakers, according to the Center for Automotive Research.

“We continue contingency planning” even after the bailout, Mike Goss, a spokesman for Toyota’s North American manufacturing unit in Erlanger, Kentucky, said by e-mail. “We hope the loans provided to Detroit will also help to stabilize suppliers, but the very slow market remains a concern for all.”

 

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BigShow50 - 12/30/2008 3:42:34 PM

+1 Boost

Good move for Toyota and Honda to be pro-active...after all bailout funds or not, why rely on a bunch of Big 3 Executive's "PROVEN FAILURES?"...LMAO!!!

woood - 12/31/2008 3:14:55 AM

+2 Boost

They're simply watching out for themselves for now.

holmstar - 12/31/2008 11:48:33 AM

+1 Boost

They are basically just borrowing against the future. They are buying more parts than they need right now in order to prop-up the suppliers. If the economy doesn't turn around quickly enough, then the suppliers will still be in trouble.