for reports on the earthquake.)
By Terje Langeland
March 15 (Bloomberg) -- Toyota Motor Corp., the world’s
largest carmaker, may lose output of at least 40,000 vehicles
after Japan’s strongest earthquake damaged factories and
crippled nuclear power plants, causing electricity shortages.
Toyota closed 12 plants in the nation through tomorrow,
Shiori Hashimoto, a spokeswoman for the company, said by phone
yesterday. The manufacturer’s profit will be cut by 6 billion
yen ($72 million) for each day of lost operations in Japan,
while Nissan Motor Co. and Honda Motor Co. may each lose 2
billion yen a day, Goldman Sachs Group Inc. estimated.
and Toshiba Corp. also shut plants following the
March 11 earthquake and tsunami, which police said may have
killed more than 10,000 people. The disaster may trim 0.3
percent from Japan’s economy as power outages cut industrial
production, Nomura Holdings Inc. estimated in a report.
“Not only is the struck region one of our production bases,
those directly hit and vastly affected include our dealers,
suppliers and numerous other partners,” Toyota President Akio
said in a statement on the Toyota City, Japan-based
Nissan, Japan’s second-largest carmaker, suspended
operations at four plants until tomorrow and at two other plants
until March 18, the Yokohama-based company said yesterday in a
The automaker earlier said 2,300 new vehicles were damaged
by tsunami surges in the wake of the 9.0-magnitude earthquake,
the strongest ever recorded in Japan. Nissan doesn’t have an
estimate of how much production may be lost, said Yuichi
, a spokesman for the company.
Honda, the nation’s third-largest carmaker, will halt
output through March 20, reducing production by an estimated
16,600 cars and trucks and 2,000 two-wheelers, Tomoko Takamori,
a spokeswoman for the Tokyo-based company, said yesterday.
Tokyo Electric Power Co.
, battling a possible meltdown at a
nuclear reactor 220 kilometers (135 miles) north of Tokyo,
planned rolling blackouts to conserve power. Millions of people
remained without electricity or water as Japan sought aid from
the United Nations atomic agency.
“This earthquake affected a wide area, and it’s likely
that the economic impact will exceed the 20 trillion yen in
damage sustained during the Kobe earthquake” of 1995, Economic
and Fiscal Policy Minister Kaoru Yosano said yesterday.
Toyota fell 4.2 percent to 3,170 yen as of 9:39 a.m. in
Tokyo trading, extending its two-day drop to 12 percent. Japan’s
benchmark Nikkei 225 Stock Average declined 5.6 percent after
plunging 6.2 percent yesterday. Nissan slid 2.9 percent, and
Honda lost 3.3 percent.
Daihatsu Motor Co., 51 percent owned by Toyota, may lose
production of 9,600 units as it closes factories through
tomorrow, Fumihiko Kondo
, a spokesman for the Osaka-based
carmaker, said yesterday.
Mitsubishi Motors Corp. planned to resume production at its
three Japan factories tomorrow after a two-day halt, Kai Inada
a spokesman for the Tokyo-based carmaker, said today.
“We don’t know how many cars we are going to lose” from
the stoppage, said Yuki Murata
, a company spokesman. Domestic
production totaled 660,104 vehicles in 2010, he said.
Mazda Motor Corp. will extend a production halt at four
Japan plants until at least tomorrow night due to a parts
shortage, Ken Haruki
, a spokesman for the Hiroshima-based
carmaker, said by phone yesterday. The company isn’t disclosing
how much output it will lose, he said.
Hino Motors Ltd. said it planned a stoppage until at least
tomorrow, and Hiromichi Suwa, a spokesman, said the company was
trying to calculate the potential loss. Rival truckmaker Isuzu
Motors Ltd. said it would stop output at its two Japan plants
until March 18.
Japan’s automakers may be able to make up for lost output
by using excess production capacity at unaffected plants and
running assembly lines on overtime and during holidays, Nomura
analyst Jiyun Konomi said in a March 13 report.
“Capacity utilization at Japanese automakers’ plants in
Japan is low,” Konomi wrote. “There does not appear to have
been major damage to building or machinery and equipment” at
Toyota and Nissan’s factories in the affected areas, he wrote.
The main risk to Japan’s manufacturing comes from the
earthquake’s impact on infrastructure, rather than from direct
damage to factories, Bhavtosh Vajpayee, head of technology
research at CLSA Asia-Pacific Markets in Hong Kong, said in a
March 13 report. The quake may trigger a supply shortage for
electronic components including batteries and memory chips,
Vajpayee said in the report.
“Closure of ports, damage to roads and electric power
outages can do serious damage to the tech supply chain,” he
wrote, adding that Japan is “critical” to the global supply in
several electronics sectors.
Japan makes 44 percent of the world’s audiovisual equipment,
40 percent of electronic components, 19 percent of
semiconductors and about 20 percent of all technology products,
Sony, Japan’s biggest exporter of consumer electronics,
halted operations at 10 factories and two research centers
yesterday because of power outages and damages, said Mami Imada
a spokeswoman for the Tokyo-based company.
The Tokyo-based company won’t disclose production capacity
of the factories that were closed, said Shinji Obana
, a Sony
spokesman. The company’s shares fell 5.2 percent in Tokyo
trading as of 9:41 a.m.
, which makes products ranging from memory chips to
nuclear power plants, halted five factories due to power outages
and closed one plant because of damage from the earthquake, the
Tokyo-based manufacturer said yesterday.
Toshiba makes between 25 percent and 35 percent of the
world’s NAND chips, used in smartphones and tablets, the CLSA
report said. The company plunged 16 percent yesterday and was
untraded as of 9:42 a.m.
Canon Inc., the world’s largest maker of cameras, said it
would suspend operations at eight production and development
facilities in northern Japan. Canon shares fell 4.1 percent.
Panasonic Corp. stopped operations at factories making
digital cameras, audio equipment, electronic materials and
devices, Akira Kadota
, a spokesman for the Osaka-based company,
said yesterday. The shares dropped 6.9 percent.
For Related News and Information:
Top stories: TOP
News on natural disasters: NI NAT
Top Japan news: TOP JN
--With assistance from Masatsugu Horie
and Naoko Fujimura
Osaka; Maki Shiraki
, Yuki Hagiwara
, Mariko Yasu
, Anna Mukai
, Shunichi Ozasa
in Tokyo; and Robert Fenner
Melbourne. Editors: Kae Inoue, Michael Tighe
To contact the reporter on this story:
in Tokyo at +81-3-3201-3471 or
To contact the editor responsible for this story:
Michael Tighe at +852-2977-2109 or
-0- Mar/15/2011 01:06 GMT