Nissan GT-R
While the humanitarian aftershocks of Japan's earthquake and tsunami are first and foremost as the world watches the recovery, the economic impacts are much on the minds of global economists.
Among the economic pillars of the Japanese economy is the auto sector. Read the latest on the state of the car industry on cbcnewsreport.com. Here you will find an article, "Uncertain Outlook for Japanese Auto Production after Quake." Yolkobsens highly recommend it as a primer on the basic situation facing the sector. It's much better than the stuffy version you'll find in The Globe and Mail.
Auto making, was among the most relied upon elements for the real economic recovery that has eluded the Japanese for more than 20 years.
Though there doesn't seem to be incapacitating harm to the majority of car plants, systemic infrastructure damage to electricity, water, rail and overseas shipping facilities has all but halted production. The article reports that parts shortages and supply chain interruptions will make the production of finished cars nigh onto impossible. A change in the current situation is difficult to forecast as Japan faces its worst crisis since World War II.
The article goes on to talk about how the seven top automakers have stopped production for the time being. Toyota will be out until at least Wednesday, for example. There are already shortages reported in the US of the Prius.
Here's where things currently stand:
Toyota has suspended production at all of its plants in Japan through Wednesday, losing about 40,000 vehicles — production that can likely be made up fairly easily. But Toyota is particularly concerned about two factories in the most heavily damaged area of northern Japan, where it makes the Yaris subcompact and Scion-brand xD and xB models. Toyota says that it has accounted for all members of its plants and subsidiaries in the region. Overall, nearly 45% of Toyota's global production has been halted.
Nissan said six plants reported damage to buildings or equipment in the wake of the earthquake, including the Oppama plant where it makes the new electric Nissan Leaf.
Nissan said it is suspending four Japanese plants are idle until Wednesday, while two will be shut until Friday. The tsunami also damaged 2,300 stored vehicles, including 1,300 U.S.-bound cars at the Port of Hitachi. Nissan said shipment of some Infiniti vehicles, as well as the Nissan GTR and 370Z, to the U.S. could be delayed.
Subaru, which had shut all of its manufacturing facilities across the country over the weekend, expected to resume production today.
Honda closed a research and development facility north of Tokyo after a cafeteria wall collapsed, killing an employee. The company has idled several vehicle and powertrain plants until March 20. About 80% of the vehicles Honda sells in North America are made in the U.S.
Suzuki has closed all of its plants in Japan until March 17, after which the company will assess the situation. Mazda, which has most of its plants in southern Japan, said none of its facilities was affected by the disaster, but it will idle production nonetheless. Likewise, Mitsubishi's plants are shut down until at least Tuesday, as it coordinates shipments with suppliers located in the quake-damaged zone.
The extent of the ripple effect will be clearer later in the week, so come back for more information.
