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West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

Toyota, Mazda drop Takata as Mitsubishi, Subaru weigh options

It's not a very good time to be Takata right now. Fresh on the heels of longtime partner Honda ditching them, Toyota and Mazda have both come out and said they will not use the company's airbag inflators if they continue to rely on ammonium nitrate. Bloomberg reports that Subaru and Mitsubishi are also contemplating a divorce. "The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota," President Akio Toyoda said during a briefing today. "What's most important above anything else is the safety and peace of mind of customers." Mazda echoed that position, simply saying it "will not use Takata airbag inflators which contain ammonium nitrate in our new cars." When you lose three huge OEM accounts in as many days, it's certainly going to have a deleterious effect on your fortunes. In Takata's case, that's meant a staggering 39-percent drop in their share price over the last three days. Yesterday alone, the company saw a 6.2-percent fall, Bloomberg reports. As the business publication reports, though, Takata isn't going down without a fight. The company is "considering some plans to survive," including a fundraising plan that will see it potentially offer up additional shares for sale. Still, at least one analyst doesn't see whatever company survives staying involved in the airbag inflator business. "I really don't see how they're going to be able to survive as an inflator manufacturer," Valient Market Research founder Scott Upham told Bloomberg. "When your major clients publicly come out and say that they're not going to use your products anymore, it makes this very difficult to sustain your business." News Source: Automotive News - sub. req.Image Credit: Carlos Osorio / AP Honda Mazda Mitsubishi Subaru Toyota Safety supplier

Honda releases H2O brand bottled water to promote FCX Clarity

Remember when Hollywood stars Diane Kruger (Inglourious Basterds) and Joshua Jackson (Fringe) took a Mercedes-Benz B-Class F-Cell into Death Valley and "survived" by drinking water from the car's tailpipe? Honda has taken that idea into movie theaters in Australia. The idea, but not fuel cell water itself. Honda has created a bottled water brande called H2O, and it's meant to promote the hydrogen-powered Honda FCX Clarity as part of Honda's "clever thinking" campaign. The headline message, just as it was for Mercedes, is that a hydrogen fuel cell car emits nothing but water vapor, which is actually safe to drink. To give movie fans a hands-on experience, Honda Australia filled a number of Palace Cinemas movie theaters with free disposable bottles of H2O water. Of course, since there are only a handful of FCX Clarity vehicles in the world today and it would take a lot of driving to fill up that many bottles, Honda admits that, "if you're holding a bottle of our specially produced H2O water in your hand right now, you've been drinking plain old spring water. If you want to taste the real thing, you'll have to travel to California, Japan or the UK where the FCX is currently available." Of course, why anyone would want to associate themselves with the unending waste that is bottle water, a product that has not proven itself to be any better than good tap water, is beyond us. But that's what Honda is doing, as you can see in the promotional video about the stunt below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.