Japanese suppliers in the US: expanding production capabilities

Akebono Brake, Koito, FCC, Topre, Toyota Industries, Teijin, Tachi-S, and Alpine

2012/08/03

Summary

 In 2011, the total sales volume in the U.S. market for light vehicles showed an increase of 10.5% to 12,776K units. The sales volume continued to rise, achieving a 14.8% year-on-year increase to 7,272K units during the first half of 2012 (January to June). At this rate, the year-round sales volume for 2012 is expected to reach 14 million units.

 This trend has also helped the recovery of production volume in the U.S. auto industry with a 10.4% y/y increase to 8,375K units in 2011 and a cumulative volume of 4,351K units during January to May 2012, which is a 26.3% increase from the previous year. The total U.S. production volume for Japanese OEMs in 2011 decreased to 2,388K units, down 9.9% from the previous year. In 2012, the production volume showed a rapid recovery during the first five months with a 53.3% year-on-year increase to 1,470K units.

 Expecting the market to expand in the medium term, the Japanese OEMs are aggressively enhancing their production capacities in North America. They have now accomplished a local production rate of 66% (local production volume/local sales volume) in the U.S. for the January to May period in 2012. The Japanese OEMs plan to increase exported vehicles from the U.S. as well.

Annual production units in the U.S.(light vehicles)
Monthly Production by Maker/Brand in USA

Toyota, Nissan, Honda: production capacity enhancement plans in North America

Toyota  In November 2011, production begins at Toyota's new Mississippi plant with an annual capacity of 150K units. It plans to add the production capacities at the Woodstock plant in Canada and the Indiana plant by 50K units, respectively, for export from the U.S. by the beginning of 2013. There is also a plan to increase its local production capacity of powertrains.
Nissan  Its Tennessee and Mississippi plants have switched their work operation to three shifts. Nissan plans to increase the total production capacity by 100K by 2013. The production of the EV Leaf will begin from 2012. Also, the OEM will start production of a new small car in Mexico plant with an initial production capacity of 175K by the end of 2013.
Honda  Honda has partially transferred its production of the CR-V for export from Japan to its plant in Canada. Production enhancement has been made to its Alabama and Indiana plant. Production at its new Mexico plant, with an annual capacity of 200K units, is planned to start during the first half of 2014.


 The Japanese parts suppliers have responded to these activities by strengthening their production capacities at their existing plants. Japanese companies such as Akebono Brake, Koito, Topre, Unipres, and Piolax have begun production of new items to meet their customers' needs.

 Other suppliers such as Mitsuba and Marujun are integrating their subsidiaries in the U.S. for streamlining and enhancing their Honda parts business. Furukawa Electric and Maruichi Steel Tube have both reorganized their U.S. subsidiaries and renewed their company names in preparation for entry into new business and new customer development.

 Teijin, Alpine, F-Tech, Kasai Kogyo, Tachi-S, and T.Rad are strengthening their R&D structures in the U.S. Faltec is working with a U.S. OEM to establish a global supply system, and Takata made an acquisition to make its way into a new business.


 The following will report on the activities of Japanese suppliers in the U.S and Canada (the report includes activities up to the beginning of July 2012 in the span of one year.)


Related Reports: Japanese suppliers
ASEAN countries (Indonesia, Vietnam and Malaysia)(Jul. 2012), Thailand (1) (Jul. 2012)/(2) (Jul. 2012),
China (East) (Jul. 2012), China (North and Northeast) (Jul. 2012), China (South) (Aug. 2012),
China (Central and Southwest) (Aug. 2012), India (Mar. 2012), Mexico/Brazil (Feb. 2012), Europe (Dec. 2011)