IMPACT OF THE JAPAN EARTHQUAKE STILL BEING MEASURED ON THE AUTOMOTIVE INDUSTRY

 

Inautonews.com gives a interesting breakdown of the effects of the earthquake on each Japanese automobile company.

Here are some excerpts.

From Honda.

Damage was widespread in the Tochigi area, where Honda has a number of operations. Honda Motor Co., Ltd. has confirmed the fatality of a Honda R&D associate at the Tochigi R&D Center, when a wall collapsed in a cafeteria. The associate was male, 43 years old.

In addition, 17 Honda associates were injured in the Tochigi area from collapsing ceilings and other damage during the earthquake (initial reports put the number of injured at 30).

• The suspension of automobile production, which began March 14, was extended today for an additional three days– through March 23 — at the following locations: Sayama Plant at Saitama Factory (Sayama, Saitama); Suzuka Factory (Suzuka, Mie).

From Toyota:

The initial freeze in production, originally said to last until the past Tuesday, has not been extended for an additional week, until March 22. In an attempt to limit the financial losses that will come as a result of the production freeze, Toyota also announced its decision to resume the production of spare parts for vehicles already on the market beginning Thursday, March 17.

From Nissan

Based on the currently available supply chain, Nissan Americas manufacturing operations plan to follow a normal production schedule for at least the next seven days. The supply chain is being continuously assessed and the next update will be provided on Friday, March 25.

From Mazda

Mazda Motor Corporation previously announced the suspension of production at its Hiroshima and Hofu plants from the night shift on March 14, until March 21, in the wake of the disaster. Mazda has now decided to resume temporary production at both plants from March 22, producing replacement parts, parts for overseas production and vehicles utilizing “in-process” inventories.

The article then goes into how these disruptions in Japan are now impacting in the U.S.

GM said Saturday it is cutting unnecessary spending companywide as it assesses the impact of production disruptions from the earthquake and tsunami in Japan.

The move will help the automaker preserve cash as it deals with the financial implications from shortages of parts made in Japan, a company spokesman said.

Also, General Motors Co. stopped work at two European factories and is mulling production cuts in Korea amid growing uncertainty over how its plants around the world will be affected by the crisis in Japan.

In the U.S., GM will shut down a plant in Shreveport, La., starting next week. Mr. Akerson said the shutdown was to ensure adequate supplies at all U.S. plants, and that the company is unsure how their supply chain will be affected.

When major manufactures are being hit with production freezes and supply chain disruptions that sets off a cascading effect in the whole economy. If people are not working they are not getting paid, if porduction is cut back back workers/companies can make less and have less to spend on other things. It looks the economic impacts of this quake is going to be felt for a long time to come.