#Earthquake

There are gallant, yet disturbing news coming from Japan’s automaker front. Japanese automakers unite to cope with the disaster. “Automakers have set up a joint headquarters for support measures and are sharing damage reports and other information,” reports The Nikkei [sub]. “They have a plan that aims to provide more effective support by dividing their forces by region and building teams on the fly. Staff from, say, Toyota may end up lending a hand to a parts maker that does business with, say, Nissan.” According to the Nikkei, Japan’s automakers also have come to a “silent understanding” to not to compete for who might be first to restart production. What is causing the sudden unity amongst former bitter rivals?

“After Fukushima, I am not sure how any politician in any modestly democratic republic is going to sell a new nuclear power plant to any general population.”

“Would you like the job of trying to sell a new nuclear plant to your electorate?”

“There is one terrible casualty in all of this: The electric car. When they make part 2 of Who Killed the Electric Car? the answer is going to be plain and clear: Fukushima killed the electric car.”

From the LogicalOptimizer blog, just one of many that currently say the same.

On Monday, Nissan plans to reopen six factories in Japan. They will make badly needed replacement parts for the domestic market and parts needed for its overseas plants, The Nikkei [sub] says. On Thursday this week, Nissan will start assembling vehicles at five of the six factories from Thursday using the parts procured by then.

Nissan’s problem plant is an engine plant in Iwaki city in Fukushima, close to the crippled nuclear power plant. Nissan is “trying to restore operations” there. The plant makes V6 engines. Bringing it on-line could take longer.

In the U.S., Nissan battles another enemy: Fear.

General Motors Co. has halted all nonessential spending and travel companywide while it gets a better handle on the potential impact of Japan’s crisis on the company, the Wall Street Journa l reports.

When the CEO of a large multinational sends out a companywide memo to hold off on any expenses that aren’t critical, things are dire. GM CEO Dan Akerson did just that, the Wall Street Journal says.

This driver had the bad luck of being on a coastal road in Japan when the tsunami hit. He had the good luck to make it through alive. And he had the amazing luck to have a video camera going while it happened, capturing the tsunami crashing into road and car.

It is one of those strange twists of fate that Toyota’s arch-nemesis, GM, would be one of the first overseas automakers to experience shutdowns caused by a lack of supplies from tsunami-devastated Japan.

Apart from donating 1,000 portable generators, Honda delivers something really useful: Precise information about road conditions in the disaster areas. Together with Google Maps and Honda’s traffic data suppliers Internavi and Smartloop, Honda provides real time road conditions for the disaster stricken areas.

We had predicted early on that “the disaster in Japan could have a major impact” not just on the Japanese auto industry, but on the auto industry worldwide. If anyone had silently hoped (you can’t say these things aloud) that the disaster over there would provide breathing room for the car industry over here, then get ready for a disappointment. First automaker to be affected over here by the Japan syndrome is GM.

Once Japanese automakers have dug out from under the rubble, cleared the ports and start shipping again, they will face a possibly bigger problem: A killer yen that has accumulated strength in an absolutely abnormal fashion over the last few days.

Reforma, a local newspaper Mexico’s Jalisco state, writes today ( via Reuters) that Honda may idle 1,100 employees at its factory there. Ruben Resendiz, spokesman fro Honda Mexico told the paper that closed airports and ports are affecting inventories. This stoppage would affect half of Honda’s employees at the plant.

On Thursday, Toyota will restart seven parts plants in central Japan to supply replacement parts for the domestic market, The Nikkei [sub] reports. Production of parts for overseas markets will start Monday.

“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, writes IHS Global Insight in a research report. “Disruption to production of parts that are unique and cannot be easily shifted has the potential to hit output badly at several automakers in the near term.”

First to be hit will be Japanese production sites overseas which often import 20 percent or more of their parts from back home.

However, plants owned by U.S. or European companies are not immune.

For days, Toyota had no word from its plants in the northern Japan quake zone. Many communities in the region are still cut off. Over the weekend, Toyota sent two truck convoys up north. On Sunday, a convoy of six water tankers, two fuel tankers and nine cargo trucks reached the area which now suffers wet weather and below freezing temperatures. A second convoy arrived on Monday.

Reuters found another problem for Japanese car makers: They will miss out on China’s luxury car market. Other than the German competition, the top Japanese manufacturers export all their luxury cars to China. “With Toyota, Honda and Nissan having shut all of plants in Japan after the earthquake and tsunami, exports to China will suffer,” says Reuters. That comes at a very inconvenient time.

High profile German companies not only shut down their Japanese operations like the Japanese colleagues. They are also recalling Germans back to Germany.