Japan carmakers take fresh steps in N America to fight

WASHINGTONDETROIT, Mar 30 (Reuters): Toyota Motor Corp and Honda Motor Corp took fresh steps to scale back output or reduce orders of some parts in North America as supplies remain disrupted after the March 11 Japan earthquake. The global auto industry is grappling with disruptions to its production and supply base in the wake of the earthquake, tsunami and nuclear crisis in northern Japan. About 13 per cent of worldwide auto output has been lost due to parts shortages. Honda said it will cut production at its US and Canadian car plants from Wednesday and Toyota, the world's biggest automaker, told North American dealers to curtail orders of replacement parts to ensure an adequate supply. "The situation in Japan is still far from stable," said IHS Automotive analyst, Rebecca Lindland. "We have to prepare. The only thing that the industry can do to protect themselves is to try and anticipate where we can have shortages and try and compensate for the level of uncertainty we're operating in right now." Toyota told dealers an assessment of inventory and the status of suppliers following the disaster prompted action to ensure enough components for the North American market. "Damage sustained by certain Japanese parts suppliers will interrupt their normal production," Toyota said in a statement that also noted current inventories are adequate. Toyota told dealers it has placed 233 parts out of 300,000 -- less than 1 per cent -- on so-called controlled allocation in order to "maximize future availability." A memo sent to Toyota and Lexus dealers Tuesday and obtained said Toyota's supply chain is currently "absorbing fluctuations" in shipments, using existing stock. A separate memo identified key parts in question, including steering wheel covers, shock absorbers, door fixtures, seals, airbag sensor components, mudguards and certain moldings.