The massive earthquake that occurred in the Miyagi prefecture of Japan on Match 11, has affected normal life in many parts of the northern Japan.  We were grateful to our customers who inquired about us well being. Osaka being far from the site of the earthquake, life is normal here.  However, Japan’s automotive sector was severely disrupted by the 9.0 magnitude earthquake followed by the tsunami that struck the country last Friday.
earthquake tsunami japanese cars
Currently, auto makers in Japan are constantly evaluating the destruction brought on by the earthquake and the tsunami that had ravaged the coastal regions along the Miyagi prefecture.  Their assessment has revealed that Japan’s car industry will be more deeply affected by these calamities than what was thought earlier.
Leading Japanese car makers like Honda Motor Co., Isuzu Motors Ltd., Hino Motors, Nissan Motor Co., and Toyota Motor Corp., have had to shut down their manufacturing plants in northern Japan after the earthquake disrupted the power supply.  Production is expected to be stopped till March 18 at most of the facilities in the affected areas.

Japan Quake Disrupts Auto Shipments

Nissan Motor announced that around 2,300 new vehicles had been swept away by the waves of the tsunami, two offices and four facilities were slightly damaged, and minor injuries were caused to employees at their Toguchi plant.  Nissan also reported it was still checking on its subsidiaries.
Fuji Heavy Industries, the parent company of Subaru, has shelved production at eight of its ten plants, including the five factories exclusively manufacturing vehicles.
The damage reported at several large automobile factories was minimal, but things were worse for a few suppliers.  In the areas most severely affected by the earthquake, subsidiary operations also took a big hit. Such plants handled the production and supply of transmissions, brakes, torque converters, wheels, and other components.  The transportation networks required for moving vehicles and auto parts were so badly affected that a quick recovery may not be possible.
Most Japanese car makers, particularly Toyota, are known for carrying out tight operations with just-in-time inventory systems where the different components and sub-assemblies are assembled into vehicles soon after arriving at the main plant.  Some of the smaller suppliers located in the more severely damaged areas could take several days or even weeks to get back to their full capacity.
Labor, fuel supplies, electrical supply, rail and highway transportation, shipping ports handling cars for export, and many such elements that are crucially important for the production and distribution of vehicles were all disrupted by  the earthquake and tsunami.  Most auto makers may keep their assembly plants shut till the supply chain recovers sufficiently to handle the demands of normal production and this won’t happen very soon.