Japanese automakers suspend vehicle production

According to “IHS Global Insight Perspective,” Japan’s auto industry has come to a halt as the physical impact of the disaster has combined with power-conservation measures to hit production

By ·

Following last Friday’s earthquake and subsequent tsunami, nearly all Japanese automakers have idled production, owing to either physical damage or rolling blackouts.

According to “IHS Global Insight Perspective,” Japan’s auto industry has come to a halt as the physical impact of the disaster has combined with power-conservation measures to hit production.

“Although the human cost is of paramount concern, the ripple effect of the stoppages to supply and production in Japan will be felt in many parts of the world, including the United States, China, and Europe, as many key parts and technology are exported to global operations from Japan,” stated the report.

Analysts said the situation “is still fluid” and the impact of the disaster still being assessed. This should become clearer as the week unfolds and more information is gleaned about the extent of the damage to infrastructure in the country, the manufacturing plants, and indeed the communities that support the industry.

Initial discussion of the severity of the impact on the industry is centered around a few main areas of concern, including OEM assembly plant production. According the latest report, several auto plants in and around the northern Miyagi Prefecture have been shuttered – primarily Toyota, Honda, and Nissan facilities.

Many more auto plants throughout the country are at risk of closure, added analysts, some owing to temporary rolling blackouts that are being considered in order to conserve power in light of the damage to several Japanese nuclear power plants.

Brandon Fried, executive director of the Air Forwarders Association, told SCMR that air carriers are being called in to take out some components that would ordinarily move by ocean vessel.

“Japan’s airports are in much better shape than its seaports,” he said.
IHS also noted that there’s been some through disruption to the country’s transport infrastructure, affecting everything from parts delivery, personnel mobility, and shipping activity.

For related stories click here.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Supplier Relationship Micro Management
Optimizing Across Six Guiding Principles
Download Today!
From the July 2017 Logistics Management Issue
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish demand and political doubt. The result: “cognitive dissonance” that finds a $1.4 trillion market scratching its head.
2017 Truckload Brokerage Roundtable: Technology continues to connect the dots
Cloud Transportation Management Systems (TMS): Weis Markets streamlines “both sides” of the DC door
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
28th Annual State of Logistics: Into the great unknown
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...