Industry Announcements (Archived Content)

5/20/11

Supply Chain Disruption Update

OEM updates (received as of 5/20/11, 10 am CST):

Toyota USA: Toyota announced that delivery of the new Prius Alpha will be delayed. Donlen expects to receive specifics regarding 2012MY startup and initial order acceptance dates in early- to mid-June. We will communicate those dates as soon as we receive them.

Toyota has completed efforts to match orders to inbound pool inventory. Donlen customers have either approved changes to orders or have been notified that orders not able to be matched have been cancelled, and we continue to monitor status on orders not yet delivered.

Toyota has approximately 450 2011MY vehicles in the pipeline with delivery windows between June and September that were made available to fleet customers on a first-come-first-serve basis today. The models and specifications available can be found here.Should you desire one of these vehicles please advise your Account Manager and we will confirm available colors and approximate delivery timing to ensure timing and the color will be acceptable.

Volkswagen: Volkswagen has experienced minimal transportation or production delays impacting delivery of 2011 models or initial production start-up of 2012MY models. The only impact Volkswagen has reported is the unavailability of the Rearview Camera that is standard on the following models:

  • CC Luxury Plus
  • CC VR6 Executive
  • Tiguan SEL w/Premium Navigation
  • Tiguan SEL 4Motion w/Premium Navigation and Dynaudio
  • All Touareg models

Park Distance Control is being substituted for the Rearview Camera until the supply is replenished.

Chrysler: Chrysler announced that it is adjusting their summer plant shutdowns according to the following:

  • Warren Truck: (Dodge Dakota and Dodge Ram 1500 Trucks) down between 6/20 and 6/27 instead of 7/11 and 7/18
  • Toledo North: (Dodge Nitro and Jeep Liberty) down between 6/20 and 6/27 instead of 7/11 and 7/18
  • Toledo Supplier Park: (Jeep Wrangler) down the week of 6/20 instead of 7/11

The Saltillo, Mexico, plant that builds the Dodge Ram (including cab-chassis models) will eliminate overtime for the weeks of 5/20, 5/27, 6/10, and 6/24, and is canceling the previously scheduled down week of 7/11. All other Chrysler plants will observe their normal summer shutdowns in July and August.

Paint Supply Update
Ford continues to update their exterior paint plans for the remainder of the 2011MY and for the startup of the 2012MY. A full list of paint issues can be found below. Newest additions include:

  • The paint at greatest risk in the coming weeks:
    • Bright Magenta (L7): Fiesta

GM announced that the following colors will not be available for the 2012 Model Year start:

  • Chevrolet Equinox/ GMC Terrain
    • GGU – Gray Green Metallic
    • GBV – Cyber Gray Metallic
    • GIS – Merlot Jewel Metallic
  • Chevrolet Malibu
    • 37U – Imperial Blue Metallic
    • GBE – Crystal Red Tintcoat
    • GGW – Taupe Grey Metallic
  • Chevrolet Impala
    • 37U: Imperial Blue Metallic
    • GBE: Crystal Claret (red)
    • 57U: Cyber Gray

 


Paint Balanceout Replacement Plan as of May 20, 2011

New updates are in bold

VEHICLE CURRENT PRODUCTION COLOR PAINT SALES CODE ESTIMATED RUN-OUT SCHEDULING WEEK REPLACEMENT PAINT COLOR PAINT SALES CODE MODEL YEAR INTRO REPLACEMENT PAINT ESTIMATED SCHEDULING TIMING
Mustang Kona Blue L6 Late May Sonic Blue SN 12MY June
  Lava Red UZ Late July Sterling Gray UJ 12MY September
  Red Candy U6 Late June Re-introduce Red Candy RZ 12MY October
Taurus Explorer Bordeaux Reserve FQ Balanced Out Cinnamon HT 12MY June
MKS Red Candy U6 Balanced Out Re-introduce Red Candy RZ 12MY June
  Tuxedo Black UH Balanced Out Black UA 11MY May
Fiesta Bright Magenta L7 Late May 11MY color only - no replacement -   N/A
  Tuxedo Black UH Mid June Black UA 12MY '12 Launch - June
F-150 Red Candy U6 Balanced Out Re-introduce Red Candy RZ 11MY June
F150 (Kansas City) Tuxedo Black UH Balanced Out Black UA 11MY May
F150 (Dearborn) Tuxedo Black UH Balanced Out Black UA 11MY May
Fusion MKZ Tuxedo Black UH Balanced Out Black UA 12MY May
Escape Sangria Red JV Balanced Out Toreador Red FL 12MY June
  Tuxedo Black UH Balanced Out Black UA 12MY May
Super Duty Tuxedo Black UH Balanced Out Black UD 11MY May
Expedition Navigator Tuxedo Black UH Balanced Out Black UA 11MY May
Super Duty Royal Red UK Balanced Out Autumn Red GT 12MY July
Expedition Navigator Royal Red UK Balanced Out Autumn Red GT 12MY '12 Launch - July
Focus Kona Blue L6 Balanced Out Sonic Blue SN 12MY June
  Red Candy U6 Balanced Out Re-introduce Red Candy RZ 12MY June
  Tuxedo Black UH Balanced Out Black UA 12MY June
Edge/MKX/Flex/MKT Bordeaux Reserve FQ Balanced Out Cinnamon HT 12MY July
Edge MKX Earth HS Balanced Out Mineral Grey TK 12MY July
  Kona Blue L6 Late May Dark Blue Pearl DX 12MY July
  Red Candy U6 Balanced Out Re-introduce Red Candy RZ 12MY July
Edge MKX Tuxedo Black UH Balanced Out Black UA 11MY May
Flex MKT Tuxedo Black UH Balanced Out Black UA 12MY June
Flex MKT Red Candy U6 Balanced Out Re-introduce Red Candy RZ 12MY June
Econoline Royal Red UK September 11MY color only - no replacement -    
Ranger Red Fire G2 Balanced Out Toreador Red FL 11MY July

5/13/11

Supply Chain Disruption Update

OEM updates (received as of 5/13/11; 9 am CST):

Toyota USA: Earlier this week Toyota announced that they would be able to increase production sooner than expected. Beginning in June, North American production will increase to approximately 70 percent of normal levels, up from 30 percent in May. Specifics regarding 2012MY startup and initial order acceptance dates are expected to be available by the end of next week. The improvement in parts availability is the result of countermeasure activities implemented by suppliers. Eight models will be returning to 100 percent production in June.

  • Avalon
  • Camry (excludes Hybrid)
  • Corolla
  • Highlander (excludes Hybrid)
  • Matrix
  • Sequoia
  • Sienna
  • Venza

Toyota’s efforts to match orders to inbound pool inventory continue, and they anticipate completing the matching process next week. Order cancellations on orders that cannot be matched continue to trickle in, and Donlen continues to present orders to customers that can be matched with minor specification or color changes upon receipt from Toyota.

Toyota will continue to evaluate production monthly model-by-model, with a goal to return to normal production levels later this year.

Nissan: Nissan’s outlook for 2012MY startup and a return to normal production levels have improved. The following chart belowreflects anticipated initial delivery months. Nissan expects to be back to full production both here and in Japan by October.

Ford: Donlen received Ford’s exterior paint plans for the remainder of the 2011MY and for the startup of the 2012MY. The following chart below indicates anticipated dates Ford will run out of current paint offerings, planned replacement paints, and when they are anticipated to be available for production scheduling.

Donlen continues to evaluate existing or new 2012MY vehicles orders with paints that have balanced out or at risk for balancing out in the near future, and provide recommendations to customers whose orders are impacted.

The paints at greatest risk in the coming weeks are:

  • Red Candy (U6) and Earth (HS): Ford Edge and Flex / Lincoln MKT and MKX
  • Bordeaux Reserve (FQ): Ford Explorer and Taurus / Lincoln MKS
  • Tuxedo Black (UH): Ford Focus

All orders for models listed below not produced requesting Tuxedo Black (UH) paint were identified and communicated to customers with the option of changing the color or allowing Ford to convert them to the new replacement Black (UA) paint. The deadline for changing the color was today.

  • Ford model: Edge
  • Lincoln model: MKX

Donlen will identify orders for F150s not able to be produced with Red Candy (U6) and the option to change to a different color or convert to the new Red Candy (RZ) will be presented to customers. Colors not changed by Friday, June 10, will automatically be converted to Red Candy (RZ).

Ford has also communicated that paint changes are required to avoid delays on 2012MY Focus and Fusion orders. Orders with desired build dates prior to the first week in July have been identified by Donlen and communicated to customers recommending a color change to avoid production delays.

  • Kona Blue (L6) will be replaced by Blue Flame (SZ); initial production is scheduled to begin on 7/6
  • Bordeaux Reserve (FQ) will be replaced by Cinnamon (HT); initial production is scheduled to begin on 7/6
  • Red Candy (U6) will be replaced by new Red Candy (RZ); initial production is scheduled to begin on 7/6
  • Tuxedo Black (UH) will be replaced by Ebony Black (UA); availability TBD

Ford is also experiencing shortages of electronic components as outlined below:

  • Navigation System (58N): Ford Escape, Econoline, F250- F550, Mustang, and Taurus
  • Voice Activated Navigation System (58F): Ford Expedition and F150

Chrysler: Journey models will no longer be produced with the 8.4 Inch Screen Radio (RE2) due to supply shortages. Donlen is working with Chrysler to identify and advise customers with impacted orders.

  • Journey Mainstreet: The 4.3 Inch Screen Radio (REB) is the standard radio. The Sound Group (AAX) and the Safe and Sound Group Package (AWX) includes the 8.4 inch screen. Chrysler has discontinued these options for the remainder of the 2011MY and removed these options from orders requesting these options that have not been built. The standard 4.3 inch screen radio (BEB) will be substituted. Customers may opt to add Premium Speakers (RC9) at a cost of $441.
  • Journey R/T and Journey Crew: The 8.4 Inch Screen Radio was standard and will be removed and replaced by the 4.3 Inch Screen Radio. This change will trigger a $271 off invoice credit. Rear Park Assist with Audio (XAA) has been discontinued for the remainder of the 2011MY. The 6 Premium Speakers w/Subwoofer (RC9) will remain standard.
  • Journey Lux: The 8.4 Inch Screen Radio was standard and will be removed and replaced by the 4.3 Inch Screen Radio. This change will trigger a $271 off invoice credit. As a result of this change the Backup Camera (XAC) will no longer be available. Orders requesting the Backup Camera will receive an addition invoice credit for $176. The Rear Park Assist with Audio (XAA) and the 6 Premium Speakers w/Subwoofer will remain standard.

Transportation/Logistics Update (as of 5/13/11; 9 am CST):

Chrysler, Ford, and GM have all reported significant progress in the backlog created by the railcar shortages and Allied Transportation issue. Ford and GM anticipate transportation will be nearing normal conditions by the end of May; Chrysler expects transportation to reach normal levels in June. The reduction in vehicle production in Japan has resulted in an increase of available railcars and transports, but the recent flooding conditions are expected to alter these projections. The Mississippi River and tributaries are flooding at various points along its course and blocking roads in Arkansas, Illinois, Indiana, Missouri, and Tennessee. Dealers and ramps in these areas will experience delivery delays until the floodwaters recede. We will keep you posted on any updates and/or delays.


MY12 Estimated Nissan & Infiniti Delivery Dates

*Dates may change without advance notice

NISSAN ESTIMATED MY12 DELIVERY DATES*
Versa HB Sep'11 to Aug'12
Versa Sd Sep'11 to Nov'12
Sentra Aug'11 to Oct'12
Cube Mar'12 to Nov'12
Altima Sedan Jul'11 to Jun'12
Altima Coupe Aug'11 to Jun'12
Maxima Oct'11 to Aug'12
LEAF Dec'11 to Oct'12
370Z Cpe/Rd Nov'11 to Apr'12
Frontier Oct'11 to Aug'12
Titan Oct'11 to Aug'12
Xterra Oct'11 to Aug'12
Pathfinder Oct'11 to Aug'12
Armada Oct'11 to Aug'12
Juke Dec'11 to Aug'12
Rogue Sep'11 to Aug'12
Murano Nov'11 to Sep'12
Murano Conv Nov'11 to Sep'12
Quest Oct'11 to Aug'12
NV Mar'11 to Aug'12
INFINITI ESTIMATED MY12 DELIVERY DATES*
G25 Oct'11 to Sep'12
G37 sedan Oct'11 to Sep'12
G37 Cp/Cnv Oct'11 to Sep'12
M Apr'11 to Feb'12
M HEV Apr'11 to Feb'12
FX Oct'11 to Sep'12
EX Sep'11 to Sep'12
QX Sep'11 to Jul'12



Paint Balanceout Replacement Plan as of May 6, 2011

New updates are in bold

VEHICLE CURRENT PRODUCTION COLOR PAINT SALES CODE ESTIMATED RUN-OUT SCHEDULING WEEK REPLACEMENT PAINT COLOR PAINT SALES CODE MODEL YEAR INTRO REPLACEMENT PAINT ESTIMATED SCHEDULING TIMING
Mustang Kona Blue L6 Late May Sonic Blue SN 12MY June
  Lava Red UZ Late July Sterling Gray UJ 12MY September
  Red Candy U6 Late June Re-introduce Red Candy RZ 12MY October
Taurus Explorer Bordeaux Reserve FQ Early May Cinnamon HT 12MY June
MKS Red Candy U6 Balanced Out Re-introduce Red Candy RZ 12MY June
  Tuxedo Black UH Balanced Out Black UA 11MY May
Fiesta Bright Magenta L7 Late May 11MY color only - no replacement -   N/A
  Tuxedo Black UH Mid June Black UA 12MY '12 Launch - June
F-150 Red Candy U6 Balanced Out Re-introduce Red Candy RZ 11MY June
F150 (Kansas City) Tuxedo Black UH Balanced Out Black UA 11MY May
F150 (Dearborn) Tuxedo Black UH Balanced Out Black UA 11MY May
Fusion MKZ Tuxedo Black UH Balanced Out Black UA 12MY May
Escape Sangria Red JV Balanced Out Toreador Red FL 12MY June
  Tuxedo Black UH Balanced Out Black UA 12MY May
Super Duty Tuxedo Black UH Balanced Out Black UD 11MY May
Expedition Navigator Tuxedo Black UH Balanced Out Black UA 11MY May
Super Duty Royal Red UK Balanced Out Autumn Red GT 12MY July
Expedition Navigator Royal Red UK Balanced Out Autumn Red GT 12MY '12 Launch - July
Focus Kona Blue L6 Balanced Out Sonic Blue SN 12MY June
  Red Candy U6 Balanced Out Re-introduce Red Candy RZ 12MY June
  Tuxedo Black UH Mid May Black UA 12MY June
Edge/MKX/Flex/MKT Bordeaux Reserve FQ Balanced Out Cinnamon HT 12MY July
Edge MKX Earth HS Mid June Mineral Grey TK 12MY July
  Kona Blue L6 Mid May Dark Blue Pearl DX 12MY July
  Red Candy U6 Mid May Re-introduce Red Candy RZ 12MY July
Edge MKX Tuxedo Black UH Balanced Out Black UA 11MY May
Flex MKT Tuxedo Black UH Balanced Out Black UA 12MY June
Flex MKT Red Candy U6 Balanced Out Re-introduce Red Candy RZ 12MY June
Econoline Royal Red UK September 11MY color only - no replacement -    
Ranger Red Fire G2 Balanced Out Toreador Red FL 11MY July

5/06/11

Supply Chain Disruption Update

Donlen continues to communicate daily with automotive OEMs regarding the impact on the remainder of 2011MY and startup of 2012MY order production, and we have been in contact with all affected customers.

OEM updates (received as of 5/6/11; 9 am CST):

Toyota USA: As a result of last week’s announcement that Toyota was suspending 2011MY orders, Donlen anticipates additional order cancellations on orders previously placed that cannot be matched up to inbound pool inventory. The initial cancellations have been communicated to impacted customers and any additional cancellations will be promptly communicated upon receipt from Toyota. Donlen has requested that Toyota provide cancellations upon completion of the matching process for each model rather than waiting until Toyota completes the matching for all models.

Mazda: Mazda announced that they do not anticipate any cancellations.

Nissan: Nissan has forwarded all cancellations and provided tentative 2010MY initial delivery timing. Donlen has advised impacted customers. Nissan has also announced the following exterior color changes/late availability regarding 2012MY Altima:

  • Metallic Slate (KBC): no longer available/replaced by Dark Slate (K50) late availability
  • Tuscan Sun (NAD): late availability
  • Navy Blue (RAB): late availability

Subaru: Subaru does not anticipate any cancellations and has been working daily to fill remaining 2011MY orders. It is extremely likely that remaining Forester orders can only be filled by adding the All Weather Package (AWP-option #2). Should this change be required, Subaru has agreed to offset the additional charge by providing a line item credit on the invoice. Should a customer choose not to accept the free upgrade, the order will be cancelled. Cancelled orders cannot be converted to 2012MY Foresters as availability of the 2012 Forester remains unknown. For the Forester 2.5 X (A4) Four Door All-Wheel Drive (model BFB), the Alloy Wheel Value Package (option 21) will be substituted at no additional charge. Donlen has identified customers with impacted orders and have advised them of this situation.

General Motors: GM announced that the following paints would not be available for 2012MY startup:

  • Gray Green Metallic (GGU): Chevrolet Equinox/GMC Terrain
  • Cyber Gray Metallic (GBV): Chevrolet Equinox/GMC Terrain
  • Merlot Jewel Metallica (GIS): Chevrolet Equinox/GMC Terrain

Ford: Ford has communicated their exterior paint plans for the remainder of the 2011MY and for the startup of the 2012MY.According to a recent Automotive News article, “Ford said today it has found nonmetallic black and metallic red paints to replace colors that were not available after the March 11 Japan earthquake.” The chart below indicates anticipated dates Ford will run out of current paint offerings, planned replacement paints, and their availability for production scheduling. Donlen continues to take the following actions:

  • Daily status evaluation of all vehicles currently on order with paints that have balanced out or will be balancing out in the near future
  • All orders requesting a balanced out paint that will not be produced have been communicated to the impacted customers, recommending changing to a different exterior color
  • All orders for models listed below requesting Tuxedo Black (UH) paint that were not produced were identified and communicated to customers, with the option of changing the color or allowing Ford to convert them to the new replacement Black (UA) paint. The deadline for changing the color was today (5/6/11).
    • Ford: Edge, Explorer, Expedition, Flex, F-Series Super Duty, Taurus
    • Lincoln: MKS, Navigator
  • All orders requesting a paint that is anticipated to balance out in the very near future were identified and communicated to customers, recommending changing to a different exterior color
  • All new 2012 orders received are evaluated for paint risk, and any at-risk orders are being communicated to the impacted customers suggesting changing to a different exterior color.

The paints at greatest risk in the coming weeks are:

  • Sangria Red (JV): Ford Escape
  • Red Candy (U6): Ford Explorer and Taurus / Lincoln MKS
  • Bordeaux Reserve (FQ): Ford Edge, Explorer, Flex and Taurus / Lincoln MKS, MKT and MKX
  • Tuxedo Black (UH): Ford Escape



On May 2, Donlen received the following update communication from Ford (reprinted here without edit):

  • Transportation Delays: We see rail car shortages gradually improving through the remainder of the year as idled rail assets are redeployed and new production units are put into service. In addition, the shortage of Japanese import production due to impact of Tsunami should create increased availability of railcars through the summer as well.

  • Paints: Many 11MY metallic paints have balanced out due to short supply from Japan. We have a plan to introduce 12MY replacement colors in same color family. However, they will not all be metallics. Target timing for replacement paint introduction is concurrent with Job#2 changes in June/July. For example, Tuxedo Black will be replaced by Ebony. We’ll continue to give a heads up every other week as to which paints are at risk of balancing out.

  • Commodites: A limited number of commodities balanced out early as a result of supplier shortfall immediately following the earthquakes/tsunami. The situation is fluid with uncertainty over supplier resumption and production ramp up. However, we are monitoring and evaluating alternatives and taking appropriate actions to mitigate risks.

  • 11/12MY Production Delays: Despite the challenges, our North American production will be up over 10% in the first half of 2011 vs 2010. There are no known 2012MY product introduction delays as a result of part supply shortages. If any changes to this occur, you will be informed promptly.

  • Part Supply Communication & Forward Outlook: Events in Japan are estimated to slow industrial output in the near term; however, recovery of lost production is likely toward year-end and into early 2012. Our material supply and logistics personnel and purchasing department have done an amazing job of minimizing the impact on Ford and their efforts have positioned us well for the remainder of 2011.


Paint Balanceout Replacement Plan as of May 3, 2011

New updates are in bold

VEHICLE CURRENT PRODUCTION COLOR PAINT SALES CODE ESTIMATED RUN-OUT SCHEDULING WEEK REPLACEMENT PAINT COLOR PAINT SALES CODE MODEL YEAR INTRO REPLACEMENT PAINT ESTIMATED SCHEDULING TIMING
Mustang Kona Blue L6 Late May Sonic Blue SN 12MY June
  Lava Red UZ Late July Sterling Gray UJ 12MY September
  Red Candy U6 Late June Re-introduce Red Candy RZ 12MY October
Taurus Explorer Bordeaux Reserve FQ Early May Cinnamon HT 12MY June
MKS Red Candy U6 Early May Re-introduce Red Candy RZ 12MY June
  Tuxedo Black UH Early May Black UA 11MY May
Fiesta Bright Magenta L7 Late May 11MY color only - no replacement -   N/A
  Tuxedo Black UH Mid June Black UA 12MY '12 Launch - June
F-150 Red Candy U6 Balanced Out Re-introduce Red Candy RZ 11MY June
F150 (Kansas City) Tuxedo Black UH Balanced Out Black UA 11MY May
F150 (Dearborn) Tuxedo Black UH Early May Black UA 11MY May
Fusion MKZ Tuxedo Black UH Balanced Out Black UA 12MY May
Escape Sangria Red JV Balanced Out Toreador Red FL 12MY June
  Tuxedo Black UH Balanced Out Black UA 12MY May
Super Duty Tuxedo Black UH Balanced Out Black UD 11MY May
Expedition Navigator Tuxedo Black UH Balanced Out Black UA 11MY May
Super Duty Royal Red UK Balanced Out Autumn Red GT 12MY July
Expedition Navigator Royal Red UK Balanced Out Autumn Red GT 12MY '12 Launch - July
Focus Kona Blue L6 Early May Sonic Blue SN 12MY June
  Red Candy U6 Early May Re-introduce Red Candy RZ 12MY June
  Tuxedo Black UH Mid May Black UA 12MY June
Edge/MKX/Flex/MKT Bordeaux Reserve FQ Balanced Out Cinnamon HT 12MY July
Edge MKX Earth HS Mid June Mineral Grey TK 12MY July
  Kona Blue L6 Mid May Dark Blue Pearl DX 12MY July
  Red Candy U6 Late May Re-introduce Red Candy RZ 12MY July
Edge MKX Tuxedo Black UH Balanced Out Black UA 11MY May
Flex MKT Tuxedo Black UH Balanced Out Black UA 12MY June
Flex MKT Red Candy U6 Balanced Out Re-introduce Red Candy RZ 12MY June
Econoline Royal Red UK September 11MY color only - no replacement -    
Ranger Red Fire G2 Balanced Out Toreador Red FL 11MY July

04/29/11

Information as of 4/29/11, 2 pm CST (Central Standard Time)

Storms Disrupt Production at Alabama Plants

Deadly tornadoes have forced Toyota Motor Manufacturing to idle their second shift according to Auto Remarketing. Widespread power outages in Huntsville Alabama will force the plant to halt production again today. The Mercede-Benz facility in Vance, Alabama, which manufacturers M-Class, the R-Class, and the GL-Class, was also forced to idle production according to media reports.

Expectations and Planning During the Supply Chain Disruption

Prior to the earthquake, tsunami, and subsequent power shortages in Japan, suppliers were already experiencing difficulties meeting the unexpected increase in demand, which was faster than anticipated from the economic downturn. The disaster in Japan has added to an already tenuous situation, and the manufacturers are impacted to varying degrees.

In addition, many OEMs are facing transportation challenges due to nationwide rail car shortages and carrier disruptions. The long winter and now the spring storms continue to add to the transportation delays. Relief is not expected until late spring/early summer.

Based on what we know, there are several things that you should expect in the near future:

  • Longer order-to-delivery times
  • 2011MY final order due dates pulled forward
  • 2012MY initial order acceptance dates, initial production startup, and initial delivery dates delayed
  • Price increases
  • Lower incentives
  • Dealer inventories at levels lower than at the end of the Cash for Clunkers Program (stock purchases will become even less cost effective)
  • Dealers refusing to trade with other dealers
  • Dealers refusing to report vehicles as fleet sales
  • Dealer markups increasing

Depending on which OEM(s) you currently utilize, Donlen recommends that you develop contingency plans to consider alternatives. We are here to assist with you with developing those contingency plans; please contact your Account Manager to discuss your options.

Donlen is in continuous communication with the manufacturers regarding the impact of supply chain disruptions on the 2011MY build and the 2012MY startup. Because of the ongoing instability in Japan, information that we receive changes on a daily basis. Donlen continues to monitor this situation and provide information as it becomes available.

OEM Updates as of April 29, 2011, 2 pm CST

Domestics: Chrysler, Ford, and General Motors

  • As previously reported, challenges with exterior paint colors continue
  • The final order due dates that have been pulled forward have been attributed primarily to high order volume vs. supply chain disruptions
  • To date we have not been advised of any expected delays on 2012MY plans

Toyota:

  • Stopped taking orders for 2011MY as of Wednesday, April 27
  • Not accepting orders for 2012MY until further notice (Donlen expects more information from Toyota regarding 2012MY some time in the next 2 weeks)
  • Japan production not expected to return to full capacity until November; full North American production expected in December
  • Japan plants currently operating at 50% capacity; North American plants currently operating at 30% capacity
  • Toyota is working through current open orders to see which ones they can build or fill from pool inventory; those that can’t be built or filled from pool inventory will be cancelled. They expect to complete this process within 5 business days. Donlen is communicating this to impacted customers
  • Experiencing transportation delays as there are not enough shipments currently leaving Japan

Nissan:

  • Stopped taking orders for 2011MY earlier than normal
  • April production was slightly above 40% when compared to April 2010 – plans are to ramp up production in May but it will depend entirely upon suppliers ability to deliver parts
  • Have not yet announced any changes to 2012MY plans
  • Donlen has notified customers that had orders Nissan could not build

Mazda:

  • Stopped taking orders on 2011MY vehicles (with the exception of the Mazda 6) earlier than normal; they have not had to cancel any orders, and all 2011MY have either been built or have firm May production slots
  • Production for 2012MY is still to be determined; a launch plan is expected by the end of May
  • Experiencing transportation delays as there are not enough shipments currently leaving Japan; there has been a 53% drop in vessels leaving Japan to the United States
  • Experiencing some rail delays due to weather throughout the Midwest and South; however this is not expected to continue

Subaru:

  • Stopped taking orders for 2011MY earlier than normal
  • 2012MY plans reveal approximately a 60-day delay over past model years (with the exception of the Tribeca)
  • To date we have not been notified of any unbuildable Subaru orders

If you have questions about your particular orders, please contact your Account Manager. We will keep you notified of any updates to this information or scheduling as it becomes available.


04/27/11

Information as of 4/27/11, 3:45 pm CST (Central Standard Time)

Toyota Suspends Ordering

Today, Toyota announced that they are unable to accept any further MY2011 orders, and some orders that they currently have may not be fulfilled.

Based on our communication with Toyota, here is the latest information:

  • Donlen is waiting for a list of orders that will not be built; we anticipate receiving this list in the next few days.
  • Donlen will provide customers a list of vehicles that will be built but delayed, including the approximate length of the delay.
  • There may be some vehicles that can’t be built as ordered but may be able to be pulled from pool inventory if you are willing to modify the order slightly relative to option or color content. If the models you ordered matches the current Toyota pool, Donlen or Toyota may contact you directly to discuss minor spec or color changes.

At this time, Toyota is also not accepting early MY2012 orders. We hope to have further information regarding this in the next couple weeks and we will notify you when we receive it.


04/22/11

Information as of 4/22/11, 12 pm CST (Central Standard Time)

Toyota: Toyota announced today that global production will begin to ramp up as soon as July in Japan and August in North America, with all models back to normal production by November or December 2011. Currently plants in Japan are working at 50% capacity, while those in North America are at 30% due to parts availability. This is the full Toyota communication:

Toyota Motor Corporation (TMC) announced late today that global production will begin to ramp up as soon as July in Japan and August in North America, with all models back to normal production by November or December 2011.

The one-month difference in the start date is due to the time required to ship parts from Japan to overseas plants.

“To all the customers who made the decision to buy a vehicle made by us, I sincerely apologize for the enormous delay in delivery,” said TMC President Akio Toyoda at a press conference in Japan today announcing the normalization timeline.

Currently, manufacturing plants in Japan are working at 50 percent of capacity due to parts availability, while those in North America are operating at 30 percent of capacity because of the parts supply situation.

The company said it plans to continue procuring parts from the same suppliers, but it will consider substitute parts from other suppliers.

TMC said there are approximately 150 parts affecting new-vehicle production, mainly electronic, rubber and paint-related. However, replacement parts for sales service and repair are available.

TMC also said it is continuing to do all it can to minimize the impact on employment. In North America, it was announced earlier this week that there are no plans for layoffs at manufacturing plants.

NissanDirect from Nissan as of 4/20/11: “Nissan is making all reasonable efforts to recover from the events and restore normal operations as soon as possible. Although Nissan has yet to complete its full impact assessment, we are proactively closing all MY11 fleet vehicle ordering. Furthermore, if you have MY11 vehicles on order, there is a high probability that your order will be suspended until MY12 units become available. When the ordering for MY12 vehicles is available, we will reach out to you immediately. Under the circumstances of this natural disaster, Nissan will not be able to price protect any impacted MY11 orders. We appreciate your understanding of the situation confronting Nissan and your cooperation and understanding under these very unfortunate circumstances.” Donlen has notified all impacted customers and will continue to monitor this situation closely. If you have questions about your particular order, please contact your Account Manager.


04/15/11

Information as of 4/15/11, 1 pm CST (Central Standard Time)

Toyota: Today TMC announced that it will keep all of its car-production plants in Japan running at 50% capacity from May 10 through June 3. “TMC deeply apologizes to its customers for not being able to build every vehicle to meet their desired specifications due to limited parts,” the announcement added. To view the full TMC statement, please visit the Toyota pressroom.

FordDirect from Ford, 4/14/2011

Full Ford FAQ Statement

Q: What actions has Ford taken thus far due to parts shortage?

A. Ford is working with its suppliers on a daily basis to minimize any disruptions. The company is acting proactively and decisively to stay ahead of the situation, including restricting some paint colors in North America, Europe and China. Ford also has pulled ahead previously scheduled downtime or taken temporary downtime in North America, Europe and Asia Pacific. The company’s previous announcements about global and North America production volumes are unchanged at this point.

Q: What actions (if any) does Ford plan related to the events in Japan?

A. We expect, beginning the last week of April and continuing into May, certain of our operations in Asia Pacific will be affected by shortages of components and vehicles kits as a result of the events in Japan. This likely will require us to reduce or temporarily cease production of certain vehicles in Asia Pacific. Several of our plants around the world will also be taking previously planned downtime for the Easter holiday.

Q. Will any of these planned actions impact the availability of our vehicles?

A. We don’t expect that to be an issue at this point. At end of March, Ford of Canada had 73,000 vehicles in inventories, equivalent to 77 days’ supply, Ford had 412,000 vehicles in U.S. inventories, equivalent to 52 days’ supply; Ford of Europe had 287,000 units in inventory in the 19 main Western European markets, equivalent to 59 days’ supply; and inventories in APA at the end of March were 126,163 units, equivalent to 44 days’ supply.

Q. Does the railcar shortage in the press have anything to do with the Japan situation?

A. No. Ford, like many others in the North American industry, is experiencing some difficulty in quickly transporting finished vehicles from our manufacturing facilities to dealerships around the country due to a shortage of rail car availability. We are working with our transportation partners to address the situation and to ship vehicles as quickly as is possible.

MazdaDirect from Mazda, 4/14/2011: “First, Mazda resumed limited production for Japan sourced vehicles on April 4, 2011. Production for April and the remaining 2011MY period will be reduced in order to allow the supplier base to stabilize their parts production and procure materials necessary to meet outstanding orders. Based upon same, we are no longer able to accept new orders for all 2011MY (and 2012MY MAZDA5) vehicles that are built in Japan. This ordering restriction is specific to the following models: MAZDA2, MAZDA3, MAZDA5, MX-5, RX-8, CX-7 AND CX-9. Please note: all orders received to date have been transmitted to our production facilities and are in process. Second, the MAZDA6 is built in Michigan and we will continue limited production of the 2011MY through the month of June. Based upon same, we will continue to accept orders for the 2011MY MAZDA6 through the end of this month only (April). However, please note that with the reduced availability of parts and planned model year changeover, we will only be able to fill the planned demand for existing MAZDA6 customers.”

MitsubishiIt’s been reported that Mitsubishi Fuso Truck and Bus Corp., the parent company of Mitsubishi Fuso Truck of America, will resume production of vehicles at the company’s main Kawasaki Plant in Japan on April 20.

Rail delays continue: In other news this week, rail delays continue to cause delivery issues. According to one source, “Deliveries of thousands of new pickup trucks from the Detroit Three manufacturers are being delayed because railroads do not have the capacity to handle rising demand.” It’s reported that 4,000 RAM pickups are delayed, and GM and Ford are delaying shipping or storing vehicles at their facilities.


04/08/11

Information as of 4/08/11, 2:30 pm CST (Central Standard Time)

Industry Update: Delays, Shortages, and Limited Production

The Japan earthquake and tsunami continue to have a significant impact on the global automotive industry. Plant shutdowns, supplier shortages, and delayed deliveries may go on for months, and vehicle prices may see increases. One report states that this “may ultimately rank as the largest peacetime disruption of world auto production.” Donlen continues to monitor the situation and any impact it may have on current or near-future orders. Customers directly impacted will be contacted immediately; in the meantime, continue to watch this space and bookmark the Fleet Management Industry Announcements on our website for the information.

Here are updates as of today:

ToyotaBreaking news – (4/8/2011; 2:30 pm CST)
Toyota announced today that its North American vehicles plants will operate on a reduced schedule, with production suspended for five days through April 25, due to parts availability following the March 11 earthquake/tsunami in Japan. Most of the company’s North American engine and component plants will follow the same schedule. Future production plans will be determined at a later date.

Specifically, production will be suspended on April 15, 18, 21 (except the Georgetown, KY plant), April 22 (a planned holiday for some locations) and April 25. The company will continue to provide employment to its approximately 25,000 regular team members that work at the plants during the non-production days. Team members not required to work may report to work for training and plant improvement activities, or take unpaid time off.

On average, about 85 percent of parts and materials for 12 North American-built Toyota and Lexus vehicles are sourced from 500 suppliers on the continent. While production of some parts and materials continues in Japan, Toyota is working closely with affected suppliers in order to minimize the impact.

“Extraordinary efforts are underway to help suppliers recover,” said Steven St. Angelo, executive vice president of Toyota Motor Engineering and Manufacturing North America (TEMA). “We are slowing down to conserve parts yet maintain production as much as possible. We appreciate the flexibility of our team members, suppliers and dealers as we work through these issues.”

To view the news release on the announcement, please visit the Toyota pressroom website.

Ford: It has been announced that they have closed the Louisville, KY plant that builds F-Series Super Duties (F250-550), Expedition and Lincoln Navigator due to parts shortages supplied by Japan for one week. In other news, Donlen received this message earlier this week regarding transportation issues: “Ford, like most others in the industry, is experiencing some difficulty in quickly transporting finished vehicles from our manufacturing facilities to dealerships around the country due to a shortage of rail car availability. We are working with our transportation partners to address the situation and we will continue to work aggressively to ship vehicles to our dealers and customers as quickly as is possible.”

Chrysler: The network is still affected by the Allied work stoppage, with many ramps that they serviced now being sourced or serviced by other carriers. There will be delays with moving vehicles but no stoppages, and their Logistics department is diligently monitoring individual locations. In other Chrysler news, they have confirmed that it is cutting overtime production in several plants. In addition, Chrysler announced a one-week shutdown of the plant producing the minivan (Dodge Grand Caravan and Chrysler Town & Country) in Windsor, Ontario.

Subaru(Partial statement from 4/6/11, edited for space.) “We have just learned from Fuji Heavy Industries Ltd. (FHI), our parent company in Japan, that partial production is scheduled to resume at our vehicle production facilities in Japan today. One-shift operations will commence on April 6 and 7, moving towards two-shift operations on or after April 8. Although production is not yet at full capacity due to some shortages in power supply and the availability of parts, this excellent news indicates that our plant in Gunma, Japan, is able to restart production on Forester, Impreza and WRX/STI models.”

Isuzu: (As of 4/5/11) Isuzu Commercial Truck of America, Inc., said that Isuzu Motors Ltd. resumed truck production at its Fujisawa plant Tuesday. Limited power supply continues to challenge both Isuzu Motors Limited, and its supplier base. The mandatory rolling blackouts are expected to continue, and impact not only Isuzu’s ability to fully recover quickly, but to also impact a speedy recovery of businesses and society as a whole. Isuzu’s Fujisawa (vehicles) and Tochigi (powertrain) plants successfully conducted testing of production equipment using vehicles and parts already in the production process. This successful testing allows Isuzu to proceed with the planned trial production set to begin on April 5, 2011. Production at these plants will build gradually to normal levels as soon as parts suppliers, supply-chain logistics and delivery of electricity become more consistent. Based on these current factors, Isuzu is unable to announce a timetable for a return to full production at this time. Isuzu Motors Limited continues to analyze and work closely with all suppliers of service parts and parts required for the re-start of production to ensure their scheduled operations support Isuzu Motors Limited’s needs.

 

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