Toyota, Nissan and Honda Face Huge Loses In March

The devastating tsunami and earthquake in Japan has not only left Japan in a state of shock and destruction but it has also affected the world economy with the automobile sector being majorly affected.

Toyota the world’s largest car manufacturing company expects delay in at least 500,000 vehicles due to scarcity of electricity and spare parts. From March 14 to March 26 the company has lost at least 140,000 units already due to shortage of electricity, rubber and spare parts. At this pace hardly any cars will be produced in April and this trend may continue in May too. Talking in terms of stock market Toyota has lost 8.2 percent in stock value in Japan since March 10, the day before the magnitude-9 temblor struck off the coast of Sendai, north of Tokyo.

Despite all these hindrances Toyota has been able to resume hybrid output using parts from suppliers who have recovered and remaining inventory. After March 11 all the manufacturers in Japan are facing power cuts as the generators have been knocked down. Toyota has to come up with a new idea of resuming their production by cooperating with other car manufactures.

Talking about Nissan which is the second largest producer of cars in Japan has reported 55,000 losses in units this month. The company is importing parts from overseas and from local suppliers. These supplies include vital engine components from the US. Nissan is determined to resume production at all car factories in Japan from April 11 while the majorly affected engine factory at Iwaki, Fukushima zone will resume mid-April.

Same story at the Honda stable which has lost 46,000 units from March 14 to April 3, Honda is also resuming production by April 11 with production of parts by April 4. North America is majorly affected by Honda’s cuts in production.

Globally, automakers may give up production of 600,000 vehicles by the end of this month, and manufacturing at plants in North America may be affected when parts supplies start running out as soon as early April. We at Motoroids pray that Japan recovers as soon as possible from this tragic fury of Mother Nature.