It may take some time before the earthquake and tsunami that struck Japan in March 2011 really affects America’s car industry, but when it does, here are some things you can expect to happen. Since there were several parts suppliers that got wiped out by the earthquake, there will be less inventory at Japanese car showrooms, in turn, reducing inventory in the United States, which is supplied by Japan. The popular Toyota Prius and other Japanese hybrid cars are already experiencing scarce inventory.
In addition, there could be an increase in the demand for used cars. Used car prices may rise this summer if the demand increases. However, this could be good news to those looking to trade their old vehicle for a new car. Finally, a buying frenzy for American cars may occur. There was a large recall on Toyota cars recently, putting the Ford Motor Company in the spotlight. It looks like 2011 may be a good year for Ford, Chevy and Chrysler and other American car makers.
It has been a month since the earthquake and tsunami struck Japan, and many of you may be wondering how Japan is coping. Here are some sobering statistics: the Japanese National Police Agency confirmed that there have been 13,127 deaths, 4,793 injured and 14,348 people missing. There are over 125,000 buildings that have been damaged or destroyed. These natural disasters have also caused heavy road and railway damage as well as a dam collapse in Fukushima. There are around 4.4 million households in northeastern Japan that have been left without electricity and 1.5 million households that have been left without water. Not only do the Japanese people have to deal with their losses, but they also have to stay alert and be attentive to their safety and health.
The tsunami resulted in more than 300,000 refugees. There are shortages in food, water, and shelter. The people of Japan really need our help. Although some of us are not in the position to help, every little bit helps. Imagine yourself in their position. One day, you wake up to a natural disaster and realize that you’ve lost your family, home, and business. I hope that the people of Japan are able to get back on their feet and heal from all the pain that this disaster has brought them. If you are interested in helping, there are many foundations dedicated to helping the victims of this disaster such as the Jennifer Smart Foundation.
The tsunami and earthquake of March 11, 2011 have had a devastating effect in Japan. If you look through Japan’s history, they are usually prepared for earthquakes, but this time, they were taken by surprise. With the earthquake shaking buildings off their foundation and the tsunami waves sweeping away everything in its path, it leaves you wondering: how is the disaster affecting the car industry?Nissan, Subaru, Honda, Mazda, Mitsubishi, Toyota and Suzuki all have their headquarters in Japan, not to mention their manufacturing facilities, as well.
Most of the major auto factories have been closed due to the circumstances. This is going to affect sales and production significantly, locally and worldwide. Many of the plants are unsure as to how long they will need to close down production. Along with this delay, auto manufacturers must also deal with the massive loss of inventory. Nissan lost 2,300 of its cars, 1,300 of which were meant to be exported to the United States. For every day that the facilities are closed, there is a loss of USD$72,000,000. Let’s hope that Japan has seen the last of these tragic events and that the car industry can start getting back on its feet and move forward.
There have been many disasters lately such as the recent earthquake and tsunami that struck Japan. Disasters such as the aforementioned are hardly predicted accurately, which means it is our responsibility to be prepared at all times. Precautions have been taught to us when we went to school or when we go to work, but for those who might have forgotten, I hope this refreshes your memory about the things you should and should not do in the event of a disaster.
Have all important documents (birth certificates, passports, social security cards, etc) pre-organized in a briefcase or backpack and ready to go. See “Simplifying Your Financial Life” for more information.
Organize a safety kit including band aids, non-perishable food, water, disinfectant, an extra pair of clothing, an extra set of keys, and other necessary toiletries.
Practice how to take cover for different types of disasters (e.g. in case of an earthquake, get under the nearest table or doorway and cover your head).
Come up with different safety plans for your family, including different escape routes and rendezvous points.
Write down any emergency numbers and keep them in your safety kit. You might also consider purchasing an inexpensive, prepaid cell phone to keep in the kit, as well.
Things you should not do in case of a disaster:
DO NOT PANIC!
Do not call 911. Phone lines will be jammed during a disaster.
Do not rely solely on your cell phones for help.
Do not lose focus.
Do not run into places where there is more danger.
Disasters can be a frightening experience but it is always important to remain calm during any difficult situation, as hard as it may be. Although there have been some predictions of future earthquakes, predictions are nothing to stress over. Instead, take it as a warning to be prepared. If you are prepared, there is nothing to be worried about.
Around the world on Friday, March 11, 2011, we watched in horror as a magnitude 8.9 earthquake, with an epicenter 231 miles (373 kilometers) northeast of Tokyo and 80 miles (130 km) east of Sendai, Honshu in the Pacific Ocean, generated a tsunami that devastated the mostly rural region of Northern Japan. The immediate destruction of the earthquake and tsunami included destroyed or toppled houses and buildings, overturned train cars, and mud and debris pushed miles inland. The livelihoods of millions of people were wiped out, the human toll incalculable.
The disaster has made even the most basic of necessities – food, clothing, and shelter – hard to come by. The international community and nonprofit organizations have stepped in, mobilizing rescue workers and providing relief to the victims of the disaster. You, too, can help the victims of the disaster by providing relief supplies or donating money. The fastest way to help is to make a $10 donation by sending a text message from your mobile phone to an organization’s short code. Ten organizations have established a text message short code so far.
Simply text the specific word to the organization’s designated short code:
On Friday, March 11, 2011, an earthquake struck off the shore of Northern Japan with a magnitude 8.9. This earthquake created a 23-foot tsunami, devastating the mostly rural area. More than 50 aftershocks have occurred since the main quake, some being over magnitude 6.0. Friday’s earthquake ranked as the fifth largest earthquake since 1900. Hundreds upon thousands of people were left dead, injured, or missing. People in Tokyo and the surrounding metropolis were left stranded because the rail network went offline immediately after the quake. 33 shelters have been set up in city hall, university campuses, and in government offices so far. Evacuations were ordered for those closest to nuclear power plants, requiring people to move at least 2-3 miles away from the plant. Although the plant was not leaking any radiation, it was still hot even after shutdown.
Natori City, Japan. Photograph: Kyodo/Reuters
The entire Pacific Rim area was put on alert, but the waves were not as strong as expected in the state of Hawaii. At around 9 AM EST, a 7-foot high tsunami hit the island of Maui, while neighboring islands Oahu and Kauai recorded waves at least 3 feet high. Jordan Scott, spokesperson for the California Emergency Management Agency, said that it could take 10 to 12 hours for the effects of the earthquake to completely fade away. Evacuations were made all along the California coast, including 6,000 people near the town of Santa Cruz. Coastal residents continue to stay on watch for any possible emergencies. People are encouraged to make any donations they can to an international relief fund supporting the victims of this disaster such as American Red Cross’s “Japan Earthquake and Pacific Tsunami” disaster relief page on Amazon.com.
The tsunami wave, as seen from the sea before making its way inland:
It may take some time before the earthquake and tsunami that struck Japan in March 2011 really affects America’s car industry, but when it does, here are some things you can expect to happen. Since there were several parts suppliers that got wiped out by the earthquake, there will be less inventory at Japanese car showrooms, in turn, reducing inventory in the United States, which is supplied by Japan. The popular Toyota Prius and other Japanese hybrid cars are already experiencing scarce inventory.
In addition, there could be an increase in the demand for used cars. Used car prices may rise this summer if the demand increases. However, this could be good news to those looking to trade their old vehicle for a new car. Finally, a buying frenzy for American cars may occur. There was a large recall on Toyota cars recently, putting the Ford Motor Company in the spotlight. It looks like 2011 may be a good year for Ford, Chevy and Chrysler and other American car makers.
