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The Japan Earth Quake and its Affect On The Auto Industry
All eyes on Japan
With Japan the main source of motor vehicles for New Zealand, businesses are watching for the disruptions of the supply chain. Concerns about production, logistics and supplies are high given their dependency on Japan.
The massive Japanese motor industry famously runs on a just-in-time delivery system, which only works when all the required parts are delivered without interruption.
Dozens of suppliers have facilities in the danger zone, raising fears that production lines will quickly run out of certain parts and stall the industry. The interrupted power supply is also cause for concern.
Toyota and a number of manufacturers including Honda, Mazda and Nissan halted work at some or all of their factories. While production is set to resume, componentry manufacturers have been badly hit, and with many manufacturers dependent on componentry produced by 3rd party suppliers, problems could be felt worldwide, and a number of companies have expressed concerns.
It isn’t just Japanese companies that face problems, and BMW has said that it is still unsure whether its production could be affected, as it relies on vital microprocessor components which feature heavily in cars, and are predominantly made in the worst affected area of Japan.
The Japanese motor vehicle industry is likely to embark on a programme to ensure that there are no concerns about radiation in new manufactured vehicles.
How has this affected Mitsubishi Motors
The three MMC plants are in Southern Japan (as are the MMC export ports) and unaffected by events further to the north, except where electricity shortages and water are affecting manufacturing facilities in general. As a result MMC plants are operating on reduced shifts and monthly shipments are expected to be scaled back but not cancelled.
With Japan the main source of motor vehicles for New Zealand, businesses are watching for the disruptions of the supply chain. Concerns about production, logistics and supplies are high given their dependency on Japan.
The massive Japanese motor industry famously runs on a just-in-time delivery system, which only works when all the required parts are delivered without interruption.
Dozens of suppliers have facilities in the danger zone, raising fears that production lines will quickly run out of certain parts and stall the industry. The interrupted power supply is also cause for concern.
Toyota and a number of manufacturers including Honda, Mazda and Nissan halted work at some or all of their factories. While production is set to resume, componentry manufacturers have been badly hit, and with many manufacturers dependent on componentry produced by 3rd party suppliers, problems could be felt worldwide, and a number of companies have expressed concerns.
It isn’t just Japanese companies that face problems, and BMW has said that it is still unsure whether its production could be affected, as it relies on vital microprocessor components which feature heavily in cars, and are predominantly made in the worst affected area of Japan.
The Japanese motor vehicle industry is likely to embark on a programme to ensure that there are no concerns about radiation in new manufactured vehicles.
How has this affected Mitsubishi Motors
The three MMC plants are in Southern Japan (as are the MMC export ports) and unaffected by events further to the north, except where electricity shortages and water are affecting manufacturing facilities in general. As a result MMC plants are operating on reduced shifts and monthly shipments are expected to be scaled back but not cancelled.