The Economic Impact of the Japan Earthquake, Continued

Associated Press, “Japanese Manufacturing Could Take Years, Billions To Recover,” starts by detailing the direct damage from the earthquake and tsunami to major manufacturers, the ports, and energy sector. Then …

[Widespread] power shortages from damage to four nuclear plants — an unfolding crisis in itself — have forced many companies to halt production.

Sony Corp. has halted output at several factories, including one that makes Blu-Ray discs. Toshiba Corp. has done the same. All automakers including Toyota Motor Corp., the world’s biggest, have stopped making cars nationwide.

Companies are also facing problems shipping components, receiving raw materials and getting workers to facilities that are working, said Dale Ford, an analyst at technology market research firm IHS iSuppli.

Toyota statement, “Updated Toyota Statement Regarding Earthquake and Tsunami in Japan“:

NEW YORK, NY (March 16, 2011; Posted at 7:00 AM EDT) We continue to place priority on supporting the relief efforts in the regions affected and ensuring that our team members, the employees at subsidiary vehicle manufacturers and at our suppliers—and all their respective family members—are safe.
With that in mind, Toyota Motor Corporation (TMC) has decided to continue the vehicle-production halt started on March 14 at all plants in Japan (including subsidiary vehicle manufacturers) through March 22.
A decision on when vehicle production will resume in Japan has yet to be made.
Separately, we will resume production of replacement parts for vehicles already on the market beginning March 17. This will allow us to take care of current Toyota owners who may need repairs.
Additionally, in an effort to keep production lines moving overseas, we plan to restart production of parts for overseas production on March 21.

Tokyo, March 14, 2011 – Operations at several Sony Corporation and Sony Group sites and facilities have been affected by the Pacific Coast of Tohoku Earthquake and tsunami, and Sony is monitoring the status of each of these sites on an on-going basis, while also considering the most effective recovery measures. Sony also has responded to reports of widespread power outages by voluntarily suspending operations at several sites. No significant injuries have been reported to employees working at any of these sites when the earthquake or tsunami occurred.

The company is currently evaluating the full impact of the earthquake, tsunami and related power outages on Sony’s businesses and consolidated financial results.

Honda, March 14 statement, “Update #2: Earthquake Impact on Honda Operations“:

Japan Operations

Considering the current situation of the nationwide recovery efforts in Japan, Honda has decided the following:

  • As of March 14, all production activities are suspended at the following Honda plants: Sayama Plant at Saitama Factory (Sayama, Saitama), Ogawa Plant (Ogawa-machi, Hiki-gun Saitama), Tochigi Factory (Moka, Tochigi), Hamamatsu Factory (Hamamatsu, Shizuoka) and Suzuka Factory (Suzuka, Mie).
  • From March 15 through 20, Honda will suspend all production activities at its plants listed above as well as at Kumamoto Factory (Ozu-machi, Kikuchi-gun, Kumamoto).
  • From March 14 through 20, Honda will suspend regular operations at all Honda facilities in the Tochigi area, where damage was more serious, and focus on the recovery of each operation. Honda associates will not come to work during this time at those facilities, including Tochigi Factory, Honda R&D Co., Ltd., R&D Center and Honda Engineering Co., Ltd.

Honda is cooperating with electricity conservation efforts and rolling blackout measures, prioritizing the relief and recovery of affected areas.

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