Thursday, March 17, 2011

Toyota, Honda, Nissan Plants Shut Down After Earthquake And Tsunami Hit Japan

The devastating earthquake in Japan has threatened to impact the exports of Japanese vehicles and auto parts coming into the United States. Toyota, Honda and Nissan all suspended production at a few of their plants in Japan today as they assessed the damage of the earthquake.
The earthquake is said to be the fifth largest in the world since 1900 and the biggest in Japan in a 140 years.
Cars like the Toyota Yaris sedan, the Scion XB and Scion XD, the Honda Fit small car, the Accord sedan and CR-V crossover are likely to be affected.
All major ports in Japan were also shut down as a result of the earthquake, potentially further delaying North American exports.
Toyota, which has a large manufacturing presence in northern Japan, has been affected the most, with closures halting production of cars like the Yaris sedan and the Scion xB and xD models. Toyota’s Tohoku car parts factory production was also shut, and production was suspended at a plant that Toyota runs with Panasonic Corp that produces hybrid vehicle batteries.
Honda’s Sayama plant, which manufactures the Fit among other cars (the Fit is exported to the U.S.), remains closed.
Nissan halted production at all four of its auto assembly plants in Japan, while all five of Subaru’s auto assembly and parts plants also halted operations.
The shutdown comes as U.S. demand for smaller, more efficient cars — like the Fit and Yaris — has gone up due to high gasoline prices.
Significant infrastructure damage also has a damning effect on the shipment of auto parts coming in from Japan.
Thankfully, a few plants still remain open. The Toyota plant in Japan that makes the Prius, was operational, a U.S.-based Toyota spokeswoman. Also, Honda’s production line is least likely to be affected since over 91 percent of the company’s cars and trucks sold in North America are made locally.
The last time U.S. gasoline prices were as high as they are now, Toyota had increased its lineup of its much more-fuel-efficient models. Hopefully, things will settle down sooner than later, this time around too.

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