Japanese automakers reduce US production over port dispute

February 18, 2015
Several Japanese automakers are preparing to reduce US factory output as the labor dispute at West Coast shipping ports continues to disrupt operations.
Honda has confirmed plans to slow production for at least a week at its US and Canadian assembly plants, while Toyota will continue to idle overtime shifts. Nissan has also confirmed that the dispute has affected production.

“We do not have a sufficient supply of several critical parts to keep the production lines running smoothly and efficiently,” Honda spokesman Mark Morrison told Reuters.

Subaru parent Fuji Heavy Industries plans to extend its air-shipping program to bypass the port trouble, though the strategy is claimed to add approximately $59 million to the company’s monthly shipping expenses.

The dispute has led to months of backed up shipping traffic spread across 29 ports, as the International Longshore and Warehouse Union fails to reach an agreement with the Pacific Maritime Association, which represents the shippers. US labor secretary Tom Perez has joined the talks, warning that the shutdown could cost the US economy hundreds of millions of dollars, however his intervention has not yet resulted in an accord.

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