Tuesday, April 5, 2011

Cars after Japan's quake: Toyota, Nissan, and Honda plan to restart production


Despite the huge difficulties the Japanese car industry is facing, analysts say automakers will be capable to recover in the year ahead.

Tokyo
As every car owner knows, it only takes one missing part to carry a car to a screeching halt. And the average car contains anyplace from 20,000 to 30,000 parts, many of which – even in American-made cars – come from Japan.

As disaster-hit Japanese automotive manufacturers and parts suppliers resist to resume operations, the global auto industry hasn't fairly come to a standstill, but it is suffering losses in production of hundreds of thousands of vehicles, amounting to billions of dollars.

We’ve already seen production at GM, Ford, Renault, and Peugeot being disrupt, says Christopher Richter, a Tokyo-based auto analyst for the Hong Kong-based CLSA investment group. The auto supply chain is a bit similar to a house of cards; and there are going to be some surprises popping up in the form of sudden shortages down the line.

Still, despite the enormous difficulties the industry is facing, analysts say automakers like Toyota, Nissan, and Honda will be capable to recover in the year ahead.

2 comments:

  1. Although earth quake creates a great damage to Japan car manufacturing industry but still Japan will recover its damages due to its economy...

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  2. Due to earthquake japan have to faces a lot of lose.But i hope that japan will come in its previous position very soon.

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