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Old 11th March 2011, 23:03   #1
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Thumbs down Earthquakes and the Jap Car Makers

While the whole world is taken aback by the recent Earthquakes and Tsunamis in Japan, here's another shocking news for the petrol heads.

The major auto cos in Japan viz Toyota, Honda and Nissan are not spared from the disaster. Check out the following links that talks more about the real impact on the auto industry:

Japan quake threatens to disrupt auto shipments | Reuters
The Canadian Press: Toyota, Honda, Nissan halt production at plants affected by Japanese earthquake
BOJ Pledges Support on Japan Earthquake; Toyota Halts Output - Bloomberg

Now what does mean to the Global auto markets including India? How bad will it affect the operations in India wrt to Honda's launch plan of its small car Brio?
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Old 11th March 2011, 23:30   #2
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Default Re: Earthquakes and the Jap Car Makers

This is a time when nothing is worth worrying about than the situation in Japan - the destruction of life and property.

About this thread - I read in an article that the Govt. would try and focus on optimizing its production - concentrate more on the nation's demands rather than exports. So, yes production (read : exports) will be hit.

Let's pray Japan is on track first.
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Old 12th March 2011, 00:26   #3
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Default Re: Earthquakes and the Jap Car Makers

Tsunami in Japan destroys fleet of cars ready for shipping. The image seen below was taken above Hitachinaka city in Ibaraki prefecture, and there's no information as to which manufacturer's cars were located here.
Zooming into the picture, it looks like a Nissan/Infiniti lot. I see some FXs, G sedands and coupes. There are a couple of 370Z's on the top left too.

My heartfelt condolences to the people of Japan.
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Last edited by theragingbull : 12th March 2011 at 00:29.
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Old 12th March 2011, 01:06   #4
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Default Re: Earthquakes and the Jap Car Makers

Pray that Japan gets back on it's feet fast.
Though as petrol heads we lament about the cars, the situation in Japan is far more worse than it's imagined.
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Old 12th March 2011, 15:35   #5
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Default Re: Earthquakes and the Jap Car Makers

Guys, we already have a thread to discuss the unfortunate effects of the earthquake on Japanese people, life and infrastructure.

Being an automotive forum, we would also like to discuss the impact on the Japanese auto industry. This thread can continue.
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Old 12th March 2011, 17:31   #6
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Default Re: Earthquakes and the Jap Car Makers

Quote:
Originally Posted by theragingbull View Post
Tsunami in Japan destroys fleet of cars ready for shipping. The image seen below was taken above Hitachinaka city in Ibaraki prefecture, and there's no information as to which manufacturer's cars were located here.
Zooming into the picture, it looks like a Nissan/Infiniti lot. I see some FXs, G sedands and coupes. There are a couple of 370Z's on the top left too.

My heartfelt condolences to the people of Japan.
Oh man the cars are stacked like Dominoes Natures fury ...man or machine cannot counter that.

Last edited by amitwlele : 12th March 2011 at 17:32.
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Old 12th March 2011, 21:28   #7
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Default Re: Earthquakes and the Jap Car Makers

Hi
My heart goes out to the japanese. But i have lot of faith in them. Having survived worst nightmares in the last century their resilience will overcome this natural disaster too. Hope they get in line soon. Cheers.
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Old 12th March 2011, 22:38   #8
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Default Re: Earthquakes and the Jap Car Makers

Reuters reported that Toyota has halted production at two factories with combined annual capacity of 420,000 small cars built mainly for overseas markets, after the massive earthquake. And they have not decided when to restart either facility.

They have also reported that these plants are in Iwate and Miyagi, the areas hardest hit by Friday's quake and subsequent tsunami, and they have evacuated all personnel from these plants, and the current state of the facilities is unknown.

It is also reported that Honda and Nissan also have suspended operations in their plants and research centre, and all will remain close on Sunday and Monday.
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Old 12th March 2011, 23:01   #9
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Default Re: Earthquakes and the Jap Car Makers

the earthquake and tsunami were really heart saddening natural calamity....My heart felt condolences to the victims.

Not create any sarcasm

But We can Put It as Natures way of taking care of all the living creatures and their population on the Planet.
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Old 13th March 2011, 02:41   #10
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Default Re: Earthquakes and the Jap Car Makers

According to press reports the Indian operations of most Japanese manufacturers is going to be minimal.

However Toyota has decided to delay the opening of its second facility at Bangalore in view of the earthquake.

This is an excerpt from a press report

Quote:
Japan's devastating earthquake and tsunami has hit its automobile biggies but the ripples are not expected to hit Indian operations. And despite a sizeable number of Indian engineers working on small car projects, there are no reports of injury or casualty.

Honda Motor Corp, which shut down two of its plants in the affected areas and reported one casualty, isn't likely to feel the pinch in India. "The Indian operation sources most of its knocked down kits and components from Thailand, one of Honda's biggest Asian hubs," said the company spokesperson. "So, apart from kits for the CRV and parts for the Accord, which are sourced from Japan, Indian operations should not suffer any supply shortage."

As for Honda, fortuitously a big enough delegation from India that was visiting Japan took the morning flight out on Friday and thus had a narrow escape. There's one person from that delegation still stuck in Narita airport but the rest of the Indian contingent working on Honda's soon to debut small car Brio are safe, said the company spokesperson.

Maruti Suzuki too is in the process of ascertaining information and all that the spokesperson could confirm is that the parent's Hamamatsu headquarters have not been impacted. Maruti officials though admit that the company is still "ascertaining the impact on suppliers".

The Toyota India spokesperson informed that the company sources most of its parts and kits from Nagoya which has not been impacted at all. As for exports out of India, most of the transmission parts are sold to Thailand and not Japan so there should not be any impact on that score.
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Old 16th March 2011, 07:19   #11
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Default Re: Earthquakes and the Jap Car Makers

Latest from Honda
The earthquake which hit Japan earlier today was one of the largest ever recorded and is a major catastrophe for the nation. Honda's number one priority is to help and support the affected areas in whatever capacity we have at our disposal. Honda can confirm that there has been one fatality at Honda R&D Co. Ltd in Tochigi prefecture. At this time, thirty injuries have also been reported.
Saitama factory has suspended production until further notice. Suzuka factory has now resumed production

Latest from Mazda
In consideration of the recent disaster, and as part of the recovery efforts underway throughout Japan, Mazda will extend the production suspension at its Hiroshima and Hofu plants until March 20. Previously, operations were scheduled to be suspended from the night shift on March 14 through to the night shift on March 16.
Mazda will announce any further production changes for March 21 onward as soon as a decision is made.

Last edited by GTO : 16th March 2011 at 10:20. Reason: Quoted post is on its way to deletion, hence removing only the quoted post
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Old 16th March 2011, 08:03   #12
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Exclamation Re: Brio's launch put off

Quote:
Originally Posted by vb-san View Post
....Honda's number one priority is to help and support the affected areas in whatever capacity we have at our disposal
Thats indeed a great selfless move by the Honda's i would say.

Well... As most of us are aware Honda has planned to hike its vehicle prices from 1st April 2011 onwards due to the escalating input costs. Today's TOI has an article stating that the recent devastation in Japan has disrupted the supply of high-tensile steel which is being imported from Japan. Prolly this will force Honda to push up the prices further.

Excerpts from the news article Steel supply worry for auto companies - The Times of India

Quote:
"We get high-tensile steel for the City sedan and the Jazz compact from Japan and these are used for things like body panels and frames," said an official from Honda Siel Cars
Another important update wrt Brio's preview event in India. PFA the press release from Honda's web site below

Quote:
Cancellation of Honda Brio India Preview event
(Monday, March 14, 2011,New Delhi)
New Delhi, 14th March 2011: In light of the recent devastating earthquake that hit Japan causing massive damage to life and property, Honda Siel Cars India Ltd. has postponed the Honda Brio India Preview event scheduled to be held on 17th March 2011 at The Grand, Vasant Kunj , New Delhi.

Honda Siel Cars India Ltd. extends heartfelt condolences to all those who have suffered or lost their near and dear ones in this tragic disaster and stands in solidarity with the Government and people of Japan
Further to the apprehensions expressed in the opening post, Honda Siel Cars India Ltd seems to go a little slow with its small car platform in India in wake of the unfortunate happening in Japan. Let us just pray that Honda and other cos in Japan along with their employees & family weather through these difficult times successfully.

PressNote_BRIO.pdf

Last edited by GTO : 16th March 2011 at 10:20. Reason: Quoted post is on its way to deletion, hence removing only quoted post
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Old 29th March 2011, 15:16   #13
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Default Re: Earthquakes and the Jap Car Makers

Summary from the ICRA on the impact to the Indian car industry. I highly recommend a read:

Quote:
Japan’s catastrophe unlikely to have immediate impact on production of Indian auto and auto-ancillary industry, but cost-push inflation could impact profitability of some OEMs.

The recent catastrophe in Japan may not adversely impact the production of automotives and auto components in India in the immediate term, but its impact over the medium to long term remains to be seen. The several challenges that could emerge in the aftermath of the earthquake and tsunami include:

(i) disruption in supplies of vehicles and vehicle assemblies to India;

(ii) cost pressures arising from appreciation of the Japanese yen;

(iii) delays in model launches; and

(iv) delays in investment by Japanese players in the Indian market.

These challenges would only add to the difficulties arising out of: (a) the increasing trend in the prices of raw materials, especially steel; (b) the rise in interest rates that Indian automotive manufacturers are already grappling with; and (c) the increase in customs duty† on pre-assembled engine and gearbox or transmission mechanism that takes effect from April 1, 2011. Mr. Subrata Ray, Sr. V.P & Co-Head-Corporate Ratings, ICRA, says, “While the domestic automotive industry has posted strong growth across segments during 2010-11 so far, the cost-push factors such as higher commodity prices, foreign exchange volatility (especially with respect to the yen) and increase in the landed costs of imports (specifically for players with a high dependence on imported assemblies) are some factors that may adversely affect the financial performance of automotive and auto-ancillary players over the short term, given that the OEMs are unlikely to be able to pass on the increase in costs to customers immediately”.

While the Indian subsidiaries of Japanese OEMs in the two-wheeler segment and most players in the domestic commercial vehicle (CV) segment have relatively high levels of indigenisation and thus limited dependence on imports, some of the OEMs (and the ancillaries) in the passenger car segment continue to have moderately high import dependence. The extent of import dependence in passenger cars is however a function of the scale of operations of these OEMs.

While production at the various sites of automotive OEMs and auto-ancillaries in Japan was halted for a few days beginning March 11, 2011 in the aftermath of the catastrophe and news came in of outbound shipments of some companies having got destroyed, ICRA believes that these events are unlikely to adversely impact automotive production in India in the immediate term as the various Indian importers maintain sufficient stocks (10-30 days’ inventory‡). Additionally, the Indian auto-ancillaries and OEMs are monitoring the developments and identifying alternative locations for sourcing electronic components (the most affected product segment). However, if the restoration of production in Japan takes longer, this may lead to shortage of select parts
(technology intensive and proprietary parts, for which alternative locations may not be available) and impact the production levels of those models in India. Over the next few months, ICRA will be monitoring production at most automotive and auto-ancillary facilities in Japan, which would be a function of the reconstruction initiatives at plants and on the infrastructure front (roads, railways, ports), besides the availability of vessels for transportation and such other factors.
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Old 29th March 2011, 19:24   #14
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Default Re: Earthquakes and the Jap Car Makers

I am not sure about the recovery of auto OEMs. However Japan as a country is already on its way to recovery.

I am amazed at their hard work and efficiency. They did this is 6 days!!??

Here is the original link - Japanese repair quake-ravaged road in just six days — Autoblog
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Old 31st March 2011, 22:19   #15
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An official statement from Honda:

Quote:
Earthquake Impact on Honda Operations in Japan, Asia and Oceania countries

Honda would like to express its deepest sympathy and condolences to the victims of the earthquake in Japan, and our sincere hopes for the earliest possible relief and recovery of the affected areas.

<About Japan operations>

・ Honda will resume production of finished automobiles at Sayama Plant at Saitama Factory (Sayama, Saitama) and Suzuka Factory (Suzuka, Mie) on Monday, April 11, 2011. This means all Honda production plants in Japan will be in operation as of that date.

・ Honda also will resume production and shipment of component parts for use in production in regions outside Japan on Monday, April 4, 2011.

・ However, as the situation with parts supply remains fluid; production of component parts and vehicles at Honda plants will resume at approximately 50% of the original production plan at the outset. Honda will carefully monitor the situation and manage its operations accordingly.

・ Most of our Japan-based suppliers are making progress to restart production, and many either have or are ready to resume parts production, however, there are a few suppliers that have yet to resolve the challenge to resume their production. In those cases, Honda is working with its suppliers to help reestablish their operations, while evaluating other possible sources for those parts in the supply chain. Please understand that Honda is making every effort to work toward a full recovery as quickly as possible. We appreciate everyone’s understanding during these challenging times.

<About Asia and Oceania operations>

・ Honda will continue motorcycle and power products production in Asia and Oceania countries.

・ Honda is striving to continue production at each automobile production plant, however, the possibility of a temporary reduction of production volume due to the short supply of some parts in the future is being carefully examined at each plant.

Teams throughout Asia and Oceania and global Honda are working diligently to overcome these temporary parts flow issues and minimize the impact on Honda associates, dealers and customers. We apologize for the inconvenience to our customers and thank everyone for their patience as we manage this challenging situation.
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