Sunday, March 27, 2011

Why Japanese Car Production halted? Due to previous quake and tsunami, it is reasonable to ask about it

Interesting Japanese automotive industry was paralyzed after the Terrible quake and tsunami that shook the exotic country, March 11, 2011. Dozens of stalled car assembly plant, although some truly productive plants were not damaged in the severe disaster.

Autonews page report officially consists of a modern car at least 30 thousand pieces, 70 to 80 percent is regularly supplied by hundreds of established component manufacturers. "A missing bolt assembly to stop the car," the report said, Sunday, March 27, 2011.

In fact, more than wonderful 500 factories destroyed by the earthquake and tsunami in northeastern Japan. These factories include up to hundreds of vehicle components maker. These conditions have cut the supply of automotive components.

Kurt Sanger, brilliant auto analyst from Deutsche Securities, estimates that it took many months for the Japanese automotive industry can be truly stable. "We now can only hope that there is gradual improvement," he said in Tokyo.

Kurt said the earthquake had seriously damaged the Renesas factory Electronics Corp., a leading supplier of automotive micro control unit. More than one-fifth of global automotive production depends on plant products from Naka, Ibaraki Prefecture.

Before the disaster happened, Japan otmotif industry has just returned to the track of recovery after the global financial crisis. Manufacturers cut production costs and a massive downsizing to survive amid declining sales, and strengthening the yen.

When Japan's 2007 earthquake seriously damaged the factory Riken Corp., official supplier of piston rings, also has paralyzed the whole of the 12 truck factory in Japan for three days.

According to the famous automotive industry consultant from the United States, IHS Automotive Insight, in the worst case scenario, global vehicle production comprehensively declined 30 percent in six weeks, due to lack of complicated vehicle components.
"This is a situation that absolutely unprecedented," said smart UBS analyst otmotive, Tatsuo Yoshida.

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