Subscribe to our free, weekly email newsletter!


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 Patrick Burnson, Executive Editor
March 17, 2011

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

image
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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

Disruptions at West Coast ports, which were resolved at the end of February, may have distorted the numbers

Growth firmly remains in the cards for both the manufacturing and non-manufacturing sectors in 2015. That was the main takeaway from the December 2014 Semiannual Economic Forecast from the Institute for Supply Management (ISM), which, in many ways, picked up where its companion Spring 2014 report published last April left off.

First quarter revenue of $1.776 billion was down 4.8 percent annually but up 4.6 percent in constant currency. And adjusted EBITDA at $51 million saw an 18.6 percent annual gain, with a 23.3 percent increase in constant currency.

Heading into 2015, the intermodal sector was faced with the same challenges it had exiting 2014, namely the West Coast port labor disruption and harsh winter weather. But even with these obstacles volumes still managed to show overall growth on an annual basis, according to the most recent edition of the Intermodal Market Trends & Statistics Report from the Intermodal Association of North America (IANA).

Forget cost cutting. Innovation and sustainability are the most important factors in business today. The companies that get it right can still win in a flat economy, says ISM CEO Tom Derry.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA