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RX-8 Production Line Shutdown?

 
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Old 11-21-2007 | 08:51 AM
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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.

Last edited by Spin9k; 11-21-2007 at 09:23 AM.
Old 11-21-2007 | 09:01 AM
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you seem paranoid about this stuff. why are you worried? i dont see how the 8 production line effects you and your 8
Old 11-21-2007 | 09:05 AM
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I like your thought process.

Paul.

Spin9k, that is.
Old 11-21-2007 | 09:17 AM
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Originally Posted by chetrickerman
you seem paranoid about this stuff. why are you worried? i dont see how the 8 production line effects you and your 8
Worried? Whose worried? I'm bored to tears. We got nothing on this forum but posting about rumors to keep us awake it seems over this looooong cold winter.
Old 11-21-2007 | 09:39 AM
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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'.
Old 11-21-2007 | 10:00 AM
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Originally Posted by kartweb
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'.
Another option would be to implement the type of 'freshening' changes that generally are used to boost the sales of an aging model.

Paul.
Old 11-21-2007 | 10:17 AM
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Originally Posted by Spin9k
Worried? Whose worried? I'm bored to tears. We got nothing on this forum but posting about rumors to keep us awake it seems over this looooong cold winter.
very true, i would like some answers to some of our bulletins on here
Old 11-21-2007 | 01:27 PM
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Originally Posted by Mazmart
Another option would be to implement the type of 'freshening' changes that generally are used to boost the sales of an aging model.

Paul.
Yes that is an option. Depending on the scope of change would determine the length of shut down. If it's body panel changes, that would range from hours to a couple of days at most. Manufacturing at the volume of even an RX8 the Manufacturing Engineers would work out the logistics for changes in advance due to the cost of idling the assembly line for a term beyond any initial production plan. Keep in mind all the external operations such as notifying the supply chain of an interrupt.

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.
Old 11-22-2007 | 01:29 AM
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Originally Posted by Spin9k
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.
"The wold may never know"
Old 11-22-2007 | 04:49 AM
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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.
Old 11-22-2007 | 09:13 AM
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no you are all wrong - my source told me they are putting the 16x into the rx8 and if I tell anyone i would be executed . So don't mention it to anyone - OK !!!!
Old 11-22-2007 | 10:04 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.
Old 11-22-2007 | 02:27 PM
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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".
Old 11-22-2007 | 04:44 PM
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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.
Old 11-22-2007 | 04:57 PM
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Originally Posted by ASH8
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.
ASH8 just pwned everyone.
Old 11-22-2007 | 09:34 PM
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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.
Old 11-22-2007 | 10:18 PM
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Originally Posted by two rotors
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.
19's?? You sure you read that right?
Old 11-22-2007 | 10:25 PM
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of course there's no new engine...we would have already known that. this is rx8club...the numbers look the same too.
Old 11-22-2007 | 10:34 PM
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I wish they would stop, that would make ours cooler.
Old 11-25-2007 | 04:11 PM
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if the sales slide continues, they only need to produce cars for a few months for a full years supply...
Old 11-25-2007 | 05:30 PM
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its getting that way at harley. you people need to go out and buy bikes!!!
Old 11-25-2007 | 05:53 PM
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^ lower the price,,,,,,,,,,,
Old 11-25-2007 | 05:55 PM
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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
Old 11-26-2007 | 12:46 PM
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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.
Old 11-26-2007 | 05:04 PM
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i say, just put the excess new engines on all 04 models to solve all recalls and engine problems xD


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