Global Automakers Restrict Orders on Vehicles Due to Xirallic Pigment Shortage

Strategic Insights -

As a specialty pigment produced at a single factory in Japan, Xirallic plays a crucial role in giving cars a distinctive shine in certain colors. The factory, operated by Merck KGaA near the Fukushima-Daiichi nuclear power station, has been evacuated due to the recent earthquake and tsunami. As a result, major automakers like Chrysler, Toyota, General Motors, and Ford are limiting orders on vehicles in specific shades, including black, red, and other colors, until the plant resumes production.

Key Takeaways:

  • Chrysler has restricted orders on vehicles in 10 colors, including two variations of black and three of red, citing a precautionary measure.
  • Ford is slowing production of "tuxedo black" and three variations of red, as well as black Expeditions, Navigators, F-150 pickup trucks, and Super Duty pickup.
  • General Motors has not restricted orders, but has been affected by a shortage of parts from Japan, prompting a temporary halt in production at some North American assembly plants.
  • Toyota has not restricted orders, but has suspended production at all 12 assembly plants in Japan at least through March 26, and will slow some North American production.
  • Honda has stated that its North American auto plants will continue normal production through April 1, but may experience temporary interruptions due to parts supply issues.

Statistics:

  • The factory in Onahama, Japan, is the only plant in the world that produces Xirallic.
  • 10 colors are being restricted by Chrysler, including two variations of black and three of red.
  • Ford is slowing production of vehicles in "tuxedo black" and three variations of red.
  • Toyota has suspended production at all 12 assembly plants in Japan at least through March 26.
  • Honda will continue normal production at its North American auto plants for the next month, but may experience temporary interruptions.
  • The Onahama plant will take between four and eight weeks to resume production after repairs.

Sources:

  • Merck KGaA spokesman Gangolf Schrimpf
  • Chrysler Group LLC spokesman Katie Hepler
  • Ford Motor Co spokesman Todd Nissen
  • Toyota Motor Co spokesman Mike Goss
  • Honda Motor Co statement on North American auto plants production