Japan's Industrial Output Suffers Major Damage

Bertel Schmitt
by Bertel Schmitt

Japan’s industrial output suffered major damage after one of the world’s strongest earthquakes, followed by an unprecedented tsunami hit Japan last week. Global supply chains are disrupted.

This is today’s rundown on auto plant closures.

  • Toyota said in an email message: “We are placing priority on supporting the relief efforts in the regions affected and ensuring that our team members, the employees at subsidiary vehicle manufacturers and at our suppliers—and all their respective family members—are safe. To that end, we are halting production at all plants in Japan (including subsidiary vehicle manufacturers) from March 14 through March 16.” According to Automotive News [sub], ” The suspension will result in a production cut of 40,000 units.
  • Honda told Reuters today that it will suspend all production in Japan “at least until March 20.” following Friday’s massive earthquake in northeastern Japan. According to Automotive News [sub], “Honda has 113 suppliers in the quake zone and still can’t get in touch with 44 of them.” Honda’s UK plant in Swindon reports no immediate impact, but is monitoring the parts supply closely. An emergency coordination center has been set up in Swindon.
  • Nissan will suspend operations at its Tochigi and Iwaki plants at least until March 18, Reuters says. Tochigi is northwest of Tokyo, Iwaki is in in the hard hit Fukushima prefecture in northern Japan. Operations at Nissan plants in Oppama, Kyushu and Yokohama, as well as Nissan Shatai Co, will not resume until March 16.
  • Isuzu will keep its plants closed through Friday, Japanese TV reports.
  • Mitsubishi wants to re-open all three of its domestic auto plants on Wednesday, but it has yet to decide whether the production lines will be able to run the following day, The Nikkei [sub] says.
  • Suzuki halted operations Monday at its six factories in Japan. Suzuki said today it will extend the closure on Tuesday and Wednesday, says The Nikkei [sub].
  • Mazda has decided to suspend production at its Hiroshima and Hofu plants from the night shift on March 14 through to the night shift on March 16, 2011. “Mazda will announce any further production changes for March 17 onward as soon as a decision is made,” a company release says.

Looking at the status of the power plants, production will likely be disrupted for longer. The northeast coast ports of Hachinohe, Sendai, Ishinomaki and Onahama were so severely damaged by Friday’s disaster that they were not expected to return to operation for months, if not years, Reuters says. These are medium-sized facilities that handled mostly containers. The port closure is expected to cost Japan more than $3.4 billion in lost seaborne trade each day.

Tokyo and all ports south of Japan’s capital are operating normally.

“Overseas production could be affected as well if shutdowns become prolonged, as core components such as engines and transmissions are supplied to overseas vehicle factories from Japan,” predicted Kohei Takahashi, an auto analyst with J.P. Morgan Securities in Tokyo.

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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  • Fincar1 Fincar1 on Mar 14, 2011

    Here is what I am having trouble figuring out: The nuclear plants lost cooling capacity because of a lack of electric power to run coolant pumps. How is it that a plant whose purpose is to produce electric power is unable to access that same electric power under emergency conditions...that is, to shove itself to the head of the line?

    • Bertel Schmitt Bertel Schmitt on Mar 14, 2011

      Fincar:

      When an earthquake is sensed, the plant shuts down, no power is created,

      The fuel rods need days or weeks to decay, hence they need to be cooled. Even spent fuel needs to be cooled.

      The power was out, diesel generators came on-line.

      The generators were wiped out by the Tsunami.

      Back-up batteries ran down.

      Generators were brought in, but were the wrong ones.

  • Herb Herb on Mar 14, 2011

    Thanks for keeping us informed. Thanks for keeping things straight. Still hoping the best...

  • Ajla Those letters look like they are from AutoZone.
  • Analoggrotto Kia EV9 was voted the best vehicle in the world and this is the best TOYOTA can do? Nice try, next.
  • 3-On-The-Tree 4cyl as well.
  • Luke42 I want more information about Ford’s Project T3.The Silverado EV needs some competition beyond just the Rivian truck. The Cybertruck has missed the mark.The Cybertruck is special in that it’s the first time Tesla has introduced an uncompetitive EV. I hope the company learns from their mistakes. While Tesla is learning what they did wrong, I’ll be shopping to replace my GMC Sierra Hybrid with a Chevy, a Ford, or a Rivian — all while happily driving my Model Y.
  • 3-On-The-Tree I wished they wouldn’t go to the twin turbo V6. That’s why I bought a 2021 Tundra V8.
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