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.