The Big Japanese Power Sharing Story: Pure Fantasy

Bertel Schmitt
by Bertel Schmitt

Remember the story about the rotating power rationing in Japan? One for all, all for one? It appears that it is pure fantasy. On Saturday, The Nikkei [sub] wrote that Japanese automakers are considering running their factories in rotation to help cut the industry’s electricity consumption. The wire service said that “automakers are expected to hold a consultative meeting shortly at the office of the Japan Automobile Manufacturers Association to agree a rotational schedule.” The story had originated on the usually reliable and sometimes uncomfortably persistent Kyodo wire. On Monday, the story grew legs. Automotive News [sub] reported that the electronic industries don’t want to be left behind and demand rotating production holidays between the automotive and electronics industries. It now emerges that it was all wishful thinking.

Today, I called a few members of the Japan Automobile Manufacturers Association to find out how the meeting went and what was decided. All JAMA members contacted said that there was no such meeting. There wasn’t even such a plan.

One industry insider said “I saw the Kyodo story last week. Closing 7-11 on Monday, Family Mart on Tuesday and Lawson’s on Wednesday sounds like a simple idea. The problem is, the car industry isn’t that simple.”

A contact at another JAMA member said: “If anyone should know about this meeting, then it’s me. I don’t know about this meeting.”

All industry sources contacted confirmed that the lack of reliable power is a huge problem. “We can fix our plants. We can give our suppliers the assistance they need,” said an executive at a leading JAMA member. “We wish we could provide our suppliers with power.”

Once the usually hot and humid summer has arrived in Japan, the power problem will be much bigger than now. According to the manufacturers, there is no simple solution in sight, not even a complicated one. All they know is that the power will be scarce and more expensive.

Who would have thought that a lack of electricity will put a big dent into the Japanese, and by extension the world’s auto industry?


Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Cdotson Cdotson on Mar 30, 2011

    I wonder (hope?) if Japan will view rebuilding from this disaster as an opportunity to merge their grids' cycle frequency. Low-voltage 50Hz can be a real PITA for some manufacturers of electromechanical equipment (like the company I work for). Some items just don't like the 50Hz Japanese supply, especially since its voltage window seems to trend to the low side anyway.

  • Geozinger Geozinger on Mar 30, 2011

    I know this is totally OT; but this quote has left me verblufft sein: "One industry insider said “I saw the Kyodo story last week. Closing 7-11 on Monday, Family Mart on Tuesday and Lawson’s on Wednesday sounds like a simple idea. The problem is, the car industry isn’t that simple.” " I haven't heard or seen a mention of Lawson's in at least 25+ years, and I had no idea they had been operating in Japan (and now China!) for a number of years now (thank you Wikipedia). it's hard for me to fathom that a convenience store chain that took root 45 mins away from where I'm from, moved to the Far East and is prospering... Weird...

  • 28-Cars-Later Why RHO? Were Gamma and Epsilon already taken?
  • 28-Cars-Later "The VF 8 has struggled to break ground in the increasingly crowded EV market, as spotty reviews have highlighted deficiencies with its tech, ride quality, and driver assistance features. That said, the price isn’t terrible by current EV standards, starting at $47,200 with leases at $429 monthly." In a not so surprising turn of events, VinFast US has already gone bankrupt.
  • 28-Cars-Later "Farley expressed his belief that Ford would figure things out in the next few years."Ford death watch starts now.
  • JMII My wife's next car will be an EV. As long as it costs under $42k that is totally within our budget. The average cost of a new ICE car is... (checks interwebs) = $47k. So EVs are already in the "affordable" range for today's new car buyers.We already have two other ICE vehicles one of which has a 6.2l V8 with a manual. This way we can have our cake and eat it too. If your a one vehicle household I can see why an EV, no matter the cost, may not work in that situation. But if you have two vehicles one can easily be an EV.My brother has an EV (Tesla Model Y) along with two ICE Porsche's (one is a dedicated track car) and his high school age daughters share an EV (Bolt). I fully assume his daughters will never drive an ICE vehicle. Just like they have never watched anything but HiDef TV, never used a land-line, nor been without an iPad. To them the concept of an ICE power vehicle is complete ridiculous - you mean you have to STOP driving to put some gas in and then PAY for it!!! Why? the car should already charged and the cost is covered by just paying the monthly electric bill.So the way I see it the EV problem will solve itself, once all the boomers die off. Myself as part of Gen X / MTV Generation will have drive a mix of EV and ICE.
  • 28-Cars-Later [Model year is 2010] "and mileage is 144,000"Why not ask $25,000? Oh too cheap, how about $50,000?Wait... the circus is missing one clown, please report to wardrobe. 2010 AUDI A3 AWD 4D HATCHBACK PREMIUM PLUS
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