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Japanese earthquakes send ripples through auto industry

The earthquakes since April 14 in Japan's Kumamoto Prefecture on the island of Kyushu are having aftershocks on the US auto industry, particularly for Toyota. The company shut down most of its factories in the country due to parts shortages, and the plants will be closed at least through April 23. "Decisions regarding recommencement of operation at plants in Japan will be made on the basis of availability of parts," the company said in a statement. According to Automotive News, Toyota's closed factories include a vast range of popular models in the US, including the Toyota Prius, Mirai, RAV4, 4Runner, Land Cruiser, Lexus ES, LS, IS, GS, RC, NX, RX, GX, and LX. The company's only sites in Japan that are still open build Hino trucks, Daihatsu models, and the Toyota Century limo. Toyota isn't yet sure whether these shutdowns could lead to vehicle shortages in the US. "As you can imagine, we are still reviewing the situation and working to learn more," company spokesperson Aaron Fowles told Autoblog. "While we know that production will be suspended in stages at most of our vehicle assembly facilities in Japan between April 18th and the 23rd, we do not know if they will continue production suspensions. Also, any effects to our inventory and/or sales have yet to be determined." He expects the automaker to know more in the coming days. Many of the affected Toyota plants aren't even in Kumamoto Prefecture, but major suppliers have factories in the region. For example, Aisin Seiki and Renesas Electronics both had to shutdown operations at plants in the area, according to Automotive News. Toyota isn't the only automaker affected. Nissan experienced a brief slowdown but was back to work on Monday, and Honda has suspended a motorcycle plant in the region until Friday. Mitsubishi had to close a production line due to the parts shortage, according to The Japan Times, but it didn't affect US models. "A supplier to our Mizushima plant has been impacted but they only supply an engine part for our mini car line. That line has been temporarily shut down due to that situation," spokesperson Alex Fedorak told Autoblog. "That same plant builds the Lancer and i-MiEv and there has been no impact to that line and production continues uninterrupted." Two major quakes hit Kumamoto Prefecture around Kumamoto city in the past week. The first on April 14 measured 6.4 magnitude, and a second on April 16 measured 7.3.

Toyota raises Japanese base wages for first time since 2008

Toyota is on track for record profits, and in return, its Japanese workers are receiving their first increase in base wages since 2008, plus higher pay based on seniority and a larger bonus for 2014. The Japanese automaker predicts the average laborer will net a 2.9 percent income gain.
The average Toyota employee will earn 2,700 yen ($26.28) more each month, a 0.8 percent increase from last year. Workers will also receive about 7,300 yen ($71.09) more monthly based on seniority and promotions. Finally, the company's union pushed through a median bonus of 2.44 million yen ($23,768) for 2014, the highest in 6 years.
The pay boost comes as Toyota forecasts a record 1.9-trillion yen ($18.5 billion) profit for the fiscal year ending on March 31, according to Bloomberg. It has been helped by the Japanese government's efforts to weaken the yen on international markets and expand inflation. Prime Minister Shinzo Abe has been asking businesses to increase compensation to end years of deflation and offset upcoming higher sales taxes. Honda and Nissan have also raised their wages there in recent months.

Honda and NHTSA report 11th death linked to Takata airbags

Honda and the National Highway Traffic Safety Administration confirmed the 11th death due to a faulty Takata airbag today. A 50-year-old California woman died from injuries sustained after the recalled airbag inflator in her 2001 Honda Civic ruptured in a crash, Automotive News reports. The Civic in question was one of 313,000 Honda/ Acura vehicles built between 2001 and 2003 with a bad Takata airbag inflator. According to AN, Honda issued an initial airbag recall in 2008, eventually sending more than 20 notices to owners of affected vehicles. NHTSA issued a dire warning in June, suggesting owners stop driving cars with recalled inflators due to the "grave danger" they posed. In the case of the 2001-2003 Hondas and Acuras, NHTSA warned of as much as a 50 percent chance an airbag inflator would rupture if it wasn't replaced in a previous recall. Between now and 2019, NHTSA plans on recalling 70 million faulty Takata inflators. But as of October 7, only about 36 percent, or 11.4 million of the officially recalled inflators, have been pulled off the road. With 11 deaths and over 100 injuries linked to faulty Takata airbags, we implore owners of recalled vehicles (regardless of the make) to heed manufacturer recalls. Yes, it's annoying to stop by the dealership, but manufacturers issue recalls for your safety. Best to pay attention to them. Related Video: News Source: Automotive News - sub. req.Image Credit: Newsome Melton / Reuters Government/Legal Recalls Honda Safety Economy Cars Sedan airbag Takata airbag recall