Impact of Tohuko Tsunami on Japanese and Ww Auto Supply Chain
Market Researcher IHS iSuppli has come out with loss estimates from the earthquake and tsunami, correlating them to GDP. The Japanese GDP is estimated at $5.5 Trillion. It is the third largest, and around 8% of the WW economy. IHS iSuppli estimates suggest that if loss is around $250 Billion, the rebuild expense will be around $190 Billion. On the other hand, the World Bank estimates that the Japanese earthquake and resulting tsunami could cost the Asian economy up to $235 Billion.
Key risk factors for the Japanese economy are the uncertainty over the nuclear plant at Fukushima (any meltdown/significant incident) and continued shortages of electricity, plus the time taken to repair the …show more content…
Source: Frost & Sullivan
Impact on the Japanese Light Vehicle Output
IHS Automotive’ s Japanese light vehicle market forecast for 2011 has been revised down by 430,000 units to 4.3m units (it was just under 4.9m units in 2010).Immediate impact of the earthquake resulted in the closure of production plants across all the Japanese manufacturers. Below is an estimate of production losses reported by IHS iSuppli Production Losses in Japan* | Manufacturer | Units Lost | Toyota (incl. Daihatsu-operated plants) | 129,872 | Nissan | 32,140 | Suzuki | 32,296 | Mazda | 28,192 | Honda | 26,752 | Mitsubishi | 18,552 | Fuji Heavy (Subaru) | 13,909 | Total Light Vehicles | 281,713 | * Estimates based on current and known shutdowns (17 March) |
Source: IHS iSuppli, March 2011
Toyota: Toyota has resumed production operations in all its plants as of 18th April; however the volume is at 50 percent owing to parts shortages and is expected to be the same until early June. Toyota has plans to halt production in its NA and European plants owing to parts shortage.
Honda: Honda has resumed production however its supply base was heavily hit by the earthquake and has only about 50 percent of its production. Similar to Toyota, Honda has also halved its production in their overseas plants owing to part shortage.
Mitsubishi: Mitsubishi will run its plants for 3 days in a week to cope up with supply