Japanese Parts Paralysis Likely To Cause Steep Losses
Japan’s carmakers are slowly returning back to normal, hobbled only by unsure supply of parts and sometimes power. It will be slow going and full of surprises. One thing is for sure: The March 11 tsunami will have an ugly effect on carmakers’ books. Combined losses for the Japan’s carmakers and suppliers could “the biggest ever,” surpassing those during 2008 to 2009 financial crisis, Noriyuki Matsushima, an analyst in Tokyo at Citigroup Inc., told Bloomberg.
- Toyota has the highest market share in Japan, the most production capacity, and the highest exposure. Toyota could post net losses of 155 billion yen ($1.9 billion) in the three months ending June 30, and 241 billion yen for the six months ending Sept. 30, according to the average of analysts’ estimates compiled by Bloomberg.
- Nissan’s six-month net loss is forecasted much lower at 48 billion yen ($593 million).
- For Honda, the analysts forecast a 37.4 billion yen ($462 million) profit for the six months ending Sept. 30.
Citigroup’s Matsushima said output reductions by Japanese carmakers may continue until April 2012: “Japan’s automakers will run out of inventory at overseas plants in the second quarter, so figures for that quarter may be lower than those in the first quarter, even as they begin to raise production levels.”
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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