RX-8 Production Line Shutdown?
11-21-2007, 07:51 AM
#1
Momentum Keeps Me Going
Thread Starter
RX-8 Production Line Shutdown?
Ok, someone tell me the answer to this riddle. The 16x is so far off, it's not even in the picture now, really, if we are to believe these interviews that are appearing https://www.rx8club.com/showthread.p...99#post2149699 Supposedly, all reports say production of the 8 stops in what, December? And the 8 production line is shutting down until perhaps April/May timeframe?
Now, what thahell are they doing at the plant with that amount of time if we are truly only getting a "refreshed" RX-8? What does that mean? If it's a only a bumper change, heck that wouldn't even need the line shut down! If it's a cosmetic sheet metal change on the same chassis and bumpers too, it still can't be so involved so as to require 3-4 months downtime.
Which begs the question to be asked.....What's going on? Are they:
1) Using this as an excuse to clean out and reduce overstock of current inventory by stopping production?
2) Using the production line to build other cars like the startup of the Mazda 2?
2) Changing the body style/chassis to say a 2 door and really needing to revamp more than we think?
3) Giving us a true MS version with advanced suspension and a FI setup of some type requiring major engine production line changes?
4) ???????
Conspiracy junkies unite and come up with some reality-based explanations! Or if you work a production line, is the supposed story possibly true? The stories circulating about the 'refresh' and the shutdown simply don't follow common sense.
Now, what thahell are they doing at the plant with that amount of time if we are truly only getting a "refreshed" RX-8? What does that mean? If it's a only a bumper change, heck that wouldn't even need the line shut down! If it's a cosmetic sheet metal change on the same chassis and bumpers too, it still can't be so involved so as to require 3-4 months downtime.
Which begs the question to be asked.....What's going on? Are they:
1) Using this as an excuse to clean out and reduce overstock of current inventory by stopping production?
2) Using the production line to build other cars like the startup of the Mazda 2?
2) Changing the body style/chassis to say a 2 door and really needing to revamp more than we think?
3) Giving us a true MS version with advanced suspension and a FI setup of some type requiring major engine production line changes?
4) ???????
Conspiracy junkies unite and come up with some reality-based explanations! Or if you work a production line, is the supposed story possibly true? The stories circulating about the 'refresh' and the shutdown simply don't follow common sense.
Last edited by Spin9k; 11-21-2007 at 08:23 AM.
11-21-2007, 08:17 AM
#4
Momentum Keeps Me Going
Thread Starter
to tears. We got nothing on this forum but posting about rumors 
to keep us awake it seems over this looooong cold winter.
11-21-2007, 08:39 AM
#5
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If you were running a production facility and your capacity was greater then sales what would you do?
a) Reduce prices and add incentives to increase sales
b) Reduce production rate
c) Supend production temporarily
What are the consequences of each?
a) Lower margin - They tried that in 2006 with 2005 models. I bought mine for 76% of sticker thanks to excess inventory. Not only did Mazda lose money on my car (and many others) they supressed the resale market which had a lingering impact on new car sales.
b) Production capacity is generally based on a rate range per shift. To dip a shift below the planned range bottom rate generally costs more then it's worth. You could cut back a shift but even then a facility and the supply chain still has a hefty maintenance cost. Both options impact margin and the RX8 typically doesn't have a large margin to play with.
c) Temporary production suspension is probably the best option. Inventory is reduced through the pipeline, and overhead support staff as well as assmblers can either be temporarily transferred (more often the Japanese way) or furloughed (the US way). Putting a facility in the idle mode has a cost as does cleaning out the inventory pipeline, but it has the best financial results. Mazda currently has a shortage of workers on some of their other assembly operations that consume overtime labor cost.
From a business decision I would choose option 'c'.
a) Reduce prices and add incentives to increase sales
b) Reduce production rate
c) Supend production temporarily
What are the consequences of each?
a) Lower margin - They tried that in 2006 with 2005 models. I bought mine for 76% of sticker thanks to excess inventory. Not only did Mazda lose money on my car (and many others) they supressed the resale market which had a lingering impact on new car sales.
b) Production capacity is generally based on a rate range per shift. To dip a shift below the planned range bottom rate generally costs more then it's worth. You could cut back a shift but even then a facility and the supply chain still has a hefty maintenance cost. Both options impact margin and the RX8 typically doesn't have a large margin to play with.
c) Temporary production suspension is probably the best option. Inventory is reduced through the pipeline, and overhead support staff as well as assmblers can either be temporarily transferred (more often the Japanese way) or furloughed (the US way). Putting a facility in the idle mode has a cost as does cleaning out the inventory pipeline, but it has the best financial results. Mazda currently has a shortage of workers on some of their other assembly operations that consume overtime labor cost.
From a business decision I would choose option 'c'.
11-21-2007, 09:00 AM
#6
If you were running a production facility and your capacity was greater then sales what would you do?
a) Reduce prices and add incentives to increase sales
b) Reduce production rate
c) Supend production temporarily
What are the consequences of each?
a) Lower margin - They tried that in 2006 with 2005 models. I bought mine for 76% of sticker thanks to excess inventory. Not only did Mazda lose money on my car (and many others) they supressed the resale market which had a lingering impact on new car sales.
b) Production capacity is generally based on a rate range per shift. To dip a shift below the planned range bottom rate generally costs more then it's worth. You could cut back a shift but even then a facility and the supply chain still has a hefty maintenance cost. Both options impact margin and the RX8 typically doesn't have a large margin to play with.
c) Temporary production suspension is probably the best option. Inventory is reduced through the pipeline, and overhead support staff as well as assmblers can either be temporarily transferred (more often the Japanese way) or furloughed (the US way). Putting a facility in the idle mode has a cost as does cleaning out the inventory pipeline, but it has the best financial results. Mazda currently has a shortage of workers on some of their other assembly operations that consume overtime labor cost.
From a business decision I would choose option 'c'.
a) Reduce prices and add incentives to increase sales
b) Reduce production rate
c) Supend production temporarily
What are the consequences of each?
a) Lower margin - They tried that in 2006 with 2005 models. I bought mine for 76% of sticker thanks to excess inventory. Not only did Mazda lose money on my car (and many others) they supressed the resale market which had a lingering impact on new car sales.
b) Production capacity is generally based on a rate range per shift. To dip a shift below the planned range bottom rate generally costs more then it's worth. You could cut back a shift but even then a facility and the supply chain still has a hefty maintenance cost. Both options impact margin and the RX8 typically doesn't have a large margin to play with.
c) Temporary production suspension is probably the best option. Inventory is reduced through the pipeline, and overhead support staff as well as assmblers can either be temporarily transferred (more often the Japanese way) or furloughed (the US way). Putting a facility in the idle mode has a cost as does cleaning out the inventory pipeline, but it has the best financial results. Mazda currently has a shortage of workers on some of their other assembly operations that consume overtime labor cost.
From a business decision I would choose option 'c'.
Paul.
11-21-2007, 09:17 AM
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11-21-2007, 12:27 PM
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In the case of adding spice to the mill such as FI, several pre-requisites would occur, for example filing with the EPA for emissions and fuel cycle. They could have done that and anyone who wants to take the time can check that out.
Personally I would love to see a little spice added.
11-22-2007, 12:29 AM
#9
I don't buy Kool-Aid
Ok, someone tell me the answer to this riddle. The 16x is so far off, it's not even in the picture now, really, if we are to believe these interviews that are appearing https://www.rx8club.com/showthread.p...99#post2149699 Supposedly, all reports say production of the 8 stops in what, December? And the 8 production line is shutting down until perhaps April/May timeframe?
Now, what thahell are they doing at the plant with that amount of time if we are truly only getting a "refreshed" RX-8? What does that mean? If it's a only a bumper change, heck that wouldn't even need the line shut down! If it's a cosmetic sheet metal change on the same chassis and bumpers too, it still can't be so involved so as to require 3-4 months downtime.
Which begs the question to be asked.....What's going on? Are they:
1) Using this as an excuse to clean out and reduce overstock of current inventory by stopping production?
2) Using the production line to build other cars like the startup of the Mazda 2?
2) Changing the body style/chassis to say a 2 door and really needing to revamp more than we think?
3) Giving us a true MS version with advanced suspension and a FI setup of some type requiring major engine production line changes?
4) ???????
Conspiracy junkies unite and come up with some reality-based explanations! Or if you work a production line, is the supposed story possibly true? The stories circulating about the 'refresh' and the shutdown simply don't follow common sense.
Now, what thahell are they doing at the plant with that amount of time if we are truly only getting a "refreshed" RX-8? What does that mean? If it's a only a bumper change, heck that wouldn't even need the line shut down! If it's a cosmetic sheet metal change on the same chassis and bumpers too, it still can't be so involved so as to require 3-4 months downtime.
Which begs the question to be asked.....What's going on? Are they:
1) Using this as an excuse to clean out and reduce overstock of current inventory by stopping production?
2) Using the production line to build other cars like the startup of the Mazda 2?
2) Changing the body style/chassis to say a 2 door and really needing to revamp more than we think?
3) Giving us a true MS version with advanced suspension and a FI setup of some type requiring major engine production line changes?
4) ???????
Conspiracy junkies unite and come up with some reality-based explanations! Or if you work a production line, is the supposed story possibly true? The stories circulating about the 'refresh' and the shutdown simply don't follow common sense.
11-22-2007, 03:49 AM
#10
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They need to retool the factory to build the new RX8, which will be a 4 rotor, hydrogen powered, twin turbo with a redline of 12,000 and a top speed of 300mph.
I know a guy at mazda so it has to be true.
I know a guy at mazda so it has to be true.
11-22-2007, 09:04 AM
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Look at the upside of a shutdown;
If it is to reduce excess inventory then used prices won't take a big hit over the next few years. That way when it's time to trade up to the 1600 the sticker shock factor won't be so bad.
If it is to reduce excess inventory then used prices won't take a big hit over the next few years. That way when it's time to trade up to the 1600 the sticker shock factor won't be so bad.
11-22-2007, 01:27 PM
#13
A production line shut down is not need for a "re-tool". That is done off-line and can be immediately implemented.
Its not likely that the line will be used for a different model if they intend to switch it back - that is really expensive.
I'm going with KartWeb's choice "C".
Its not likely that the line will be used for a different model if they intend to switch it back - that is really expensive.
I'm going with KartWeb's choice "C".
11-22-2007, 03:44 PM
#14
Super Moderator
There is NO dedicated production line for the RX-8, the Ujina Plant, Hiroshima produces multiple Mazda's off the same line.
Mazda 2, Mx-5, RX-8, Cx-7,CX-9 plus some micro domestics models.
IMO it is all to do with capacity finding room for production of other models above,
and giving distributors enough time to sell out all their 07 or MY08 Rx-8's.
Keeping in mind that also March in every year a union shutdown/break..I think for 2 weeks.
Mazda 2, Mx-5, RX-8, Cx-7,CX-9 plus some micro domestics models.
IMO it is all to do with capacity finding room for production of other models above,
and giving distributors enough time to sell out all their 07 or MY08 Rx-8's.
Keeping in mind that also March in every year a union shutdown/break..I think for 2 weeks.
11-22-2007, 03:57 PM
#15
There is NO dedicated production line for the RX-8, the Ujina Plant, Hiroshima produces multiple Mazda's off the same line.
Mazda 2, Mx-5, RX-8, Cx-7,CX-9 plus some micro domestics models.
IMO it is all to do with capacity finding room for production of other models above,
and giving distributors enough time to sell out all their 07 or MY08 Rx-8's.
Keeping in mind that also March in every year a union shutdown/break..I think for 2 weeks.
Mazda 2, Mx-5, RX-8, Cx-7,CX-9 plus some micro domestics models.
IMO it is all to do with capacity finding room for production of other models above,
and giving distributors enough time to sell out all their 07 or MY08 Rx-8's.
Keeping in mind that also March in every year a union shutdown/break..I think for 2 weeks.
11-22-2007, 08:34 PM
#16
Registered User
All very interesting,but Mazda Canada have just released Preliminary 2009 Model RX-8 Specifications and Features,with Job 1:February 2008.No new engine,but HP now quoted at 232 HP@8500rpm/159ft.lbs torque at 5500rpm.
new sport trim level with 19in wheels,bilstein shocks etc etc.
new sport trim level with 19in wheels,bilstein shocks etc etc.
11-22-2007, 09:18 PM
#17
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All very interesting,but Mazda Canada have just released Preliminary 2009 Model RX-8 Specifications and Features,with Job 1:February 2008.No new engine,but HP now quoted at 232 HP@8500rpm/159ft.lbs torque at 5500rpm.
new sport trim level with 19in wheels,bilstein shocks etc etc.
new sport trim level with 19in wheels,bilstein shocks etc etc.
11-25-2007, 04:55 PM
#23
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supply and demand. if we are making too many bikes, and the demand is low, what do you think will happen. and i dont really care about you guys buying new bikes. i just want you to send in your engines to be remanufactured
11-26-2007, 11:46 AM
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I had to wait until July for my 2006, and was told at the time that they used the line to produce additional 3's due to their high demand - for whatever that is worth.
