Automakers make contingency plans for West Coast imports


Automakers say they are aware of the risk of another work stoppage.

“We have developed countermeasures in the event of disruption to operations. Our goal is to minimize any impact to our customers,” Toyota spokesman Ed Hellwig said. Automotive News.

Toyota Motor North America uses several ports in California – Benicia, Long Beach, Port Hueneme and San Diego – as well as ports in Portland and Tacoma, Washington. It primarily transports vehicles within North America, but the automaker also sends domestically built cars to Hawaii. , Alaska and South Korea from select West Coast ports.

Hyundai Motor America uses San Diego, Port Hueneme and Portland for its west coast operations.

“Our logistics subsidiary Hyundai Glovis is closely monitoring the workforce situation and working on contingencies daily to ensure the smooth processing and delivery of Hyundai vehicles,” spokesman Michael Stewart said.

Nissan is also heavily dependent on west coast ports.

“We are working closely with our supplier partners to continuously monitor potential supply chain disruptions, and are developing contingency plans to help preserve parts and vehicle supply for our customers,” said said spokesman Brian Brockman.

While automakers can make some adjustments in the event of a work stoppage, their options are limited, Silberg said.

“Even though they may have contingency plans, it’s a lot of cargo to get through, and if it all stops, it would be painful,” Silberg said.

Additionally, KPMG’s analysis does not include many electronic components that are used by industry but are not identified by US Customs tracking as auto parts.

“As we’ve seen, if you’re missing a chip, it could stop or delay production and sales,” Silberg said.

Disruption at ports would come as big Asian brands struggle to push inventory into the US market. Toyota, Kia, Subaru, Honda, Lexus and Hyundai currently have some of the thinnest US inventories. Toyota dealerships, for example, started July with less than two days of inventory on their lots, the company said.

It could get tighter. Honda Motor Co plans to cut production in Japan by 30% next month from what it had planned due to supply chain issues and other logistical problems. Toyota said its global production in August would be 18% lower than its annual plan.


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