Japanese auto production crashes

Well, we knew, Andrew, that all of these numbers would be bad. Throughout the early season, all of the CEOs and the presidents have said that we are hurting, specifically in sales and production because of the tsunami. We are now, though, getting the exact figures; we now know exactly how badly they are hurting when it comes to production and exports. And take a look at these figures. These are the figures just released this afternoon, the April, 2011 figures as compared to the year previous: Toyota down 47.8%, Honda down 52%, Nissan down 22%. This is the worldwide production. Now, look at the export figures. All of the automotive Big Three here in Japan as they are known, they are down more than 70% in April, the first full month that they are seeing the real impact of the tsunami - down more than 70% as compared to the April the year previous.

Now why is this all happening? Well, the tsunami knocked out some key suppliers, some key parts-makers in that tsunami zone. They make those parts. So there is a part shortage. They simply don’t have the parts they need to make vehicles. So that’s impacting production. That’s impacting exports. And what else is happening is that what the automakers (are) now having to deal with, especially as we head into these hot summer months here in Japan, is they are looking ahead to having to curtail some production or trying to shift some of their work days because of the looming energy crisis here in Japan. Andrew?

Just taking away the energy problems that the car-makers are facing, Kyung, when do they expect to be back at something like full production; when will the supply lines be back, working properly?

It’s really coming in phases. Toyota, for example, has said they really wanna start in June, coming back to full production. If you look at Nissan, they are saying in some areas we are back in full production. It’s starting to come back slowly, but it’s really something that we are gonna have to watch throughout the year and much of it is going to depend on, as you say Andrew, how much energy there is to go around to keep those production lines moving.

 

automotive:

a. relating to cars and other motor vehiclesloom:

v. to appear in a large shape that is not clear, usually in a threatening way