Auto industry’s response to Japan quake
Last Friday, Japan was hammered by what was easily the worst disaster it has faced in living memory. The devastation brought about by a magnitude 9.0 earthquake and the aftershocks and tsunamis that followed shook the Land of the Rising Sun to its core.
Full impact of this quake cannot be estimated yet, but you can be sure that the Japanese will once again have to rebuild themselves as they did 65 years ago from the ashes of World War II. To give you an illustration of this earthquake’s power, some parts of the country actually shifted some 4.0 metres eastwards. Landmasses usually move in the order of millimetres per year, not metres.
In the name of safety, Japanese car makers immediately announced plant shut down orders back home. Nissan and Toyota have shut down all of their Japanese plants until 16 March 2011. Operations in Mazda’s plants at Hiroshima and Hofu are suspended until 20 March. Honda has similarly closed its plants down till 20 March as well.
We contacted representatives from the local distributors of the various Japanese makers here for comments regarding the situation, and we’ve generally been told that supply is currently at healthy levels to meet demand in the short term.
Nissan distributor Edaran Tan Chong Motor yesterday released a statement from its Executive Director Dato’ Dr Ang Bon Beng saying that, “There is no immediate negative impact to our business as we hold inventory, in both CKD and CBU forms.”
Honda Malaysia similarly announced no immediate disruption on the supply of its cars here. Honda Malaysia Managing Director and Chief Executive Officer, Mr Yoichiro Ueno said, “Our inventory for the 4 CKD models of Accord, CR-V, Civic, City, and the other 4 CBU models in Malaysia is sufficient for the next one to two months. We are monitoring the situation closely and will make the relevant announcement when we have more information.”
It’s also business as usual at UMW Toyota Motor with present delivery schedules not affected by the quake. The company released a statement yesterday stating that sales and order taking of fully-imported Toyota and Lexus vehicles will continue as usual.
The UMW Group’s extended family member, Perodua, has between 10% and 20% Japan-sourced parts in its three models – the Myvi, Viva and Alza. Perodua assures us that supply of these parts, mainly engine components are unaffected and will not disrupt its manufacturing operations.
Regarding the disaster that struck Japan, Perodua Managing Director, Datuk Aminar Rashid Salleh said, “Our hearts and sympathies go out to the victims and families of this tragedy. To express our heartfelt sympathy Perodua will be donating RM50,000 to the Japanese government through their embassy in Kuala Lumpur.”
Isuzu Malaysia also does not expect business to be affected in the short term. CEO Mr Takashi Hata noted that, “It is currently premature to speculate on the damage this terrible disaster will have on Japan’s economic infrastructure but at the moment, Isuzu Malaysia is amply buffered and we do not foresee our operations to be adversely affected in the near future.”
Nissan Motor Co Ltd and Mazda Motor Corporation have pledged to pour 30 million yen (RM 1.11 million) each to help finance initial relief efforts. Both companies also hint at further assistance where possible. Meanwhile Honda’s contribution adds up to 300 million yen and 1,000 generators along with 5,000 gas canisters. Aid was also forthcoming from automotive parts supplier Continental, which donated €250,000.
Finally, we at Autoworld.com.my would like to convey our sympathies to Japan and its people for their losses in this tragedy. We have read touching reports on how the Japanese are dealing with the situation, and have nothing but the greatest respect for the immense strength and dignity in which they have conducted themselves.
Our best wishes are with them, and we believe that if any country can rebound from such a disaster, Japan would be one. If you have any friends that you would like to locate in Japan, please find our link to Google’s Person Finder below.
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