June 21st, 2016

Potential Losses From the Kumamoto Earthquake: Part II

Posted at 1:00 AM ET

Toyota Motor Corporation expects to lose 80,000 units of production after shutting down nearly all of its assembly plants in Japan as a result of the Kumamoto Earthquake. The shutdowns occurred after disruption to two of its suppliers, Aisin Seiki, which produces automotive components and Renesas Electronics, a manufacturer of automotive microchips (1). ¬†Aisin Seiki said production at two plants that make engine and auto parts, semiconductors and other components have been stopped since April 14. Renesas’s plant was also shut down (2).

Toyota was not the only automaker affected. Nissan experienced a brief slowdown, Honda suspended a motorcycle plant in the region and Mitsubishi closed a production line due to a parts shortage (3).

General Motors temporarily closed four North American assembly plants because of supply chain disruptions. The assembly plants shutdowns were in Spring Hill, Tennessee; Lordstown, Ohio; Fairfax, Kansas and Oshawa, Ontario (4).

Other companies in the area reporting suspended operations according to Newswitch (5):

  • Fuji Seiko (Precision): Operations at their Kumamoto factory in Otsu-town were suspended, but the supply of their products, such as cutting tools, will be maintained by shifting production to other factories.
  • Chuo Katan Kogyo: Operations at their Kumamoto factory in Otsu-town, which cuts aluminum and other mold products for automobiles, were suspended.
  • Koshi Tech: Operations at their Kumamoto factory, which manufactures components and parts for motorbikes, automobiles and general-purpose engines, were suspended.
  • Honda: Operations at their Kumamoto factory in Otsu-town were suspended but Honda’s product supply was maintained by shifting production to other Honda factories.
  • Bridgestone: Operations at their Kumamoto factory in Tamana-city that produce rubber crawlers and high-pressure hoses were suspended.
  • NOK: Operations at their Kumamoto factory in Aso-city, which manufactures O-rings, were suspended due to power shortages.
  • Toyota Motor Kyushu: Both the Kanda factory, which manufactures engines, and the Kokura factory, which manufactures the components for hybrid cars, suspended operations.
  • NIFCO: The factory that manufactures resin interior parts for automobile cabins and certain components for fuel systems suspended operations due to property damage.
  • Alfresa Holdings: Shipping of its pharmaceutical supplies was suspended from its Kyushu Logistics Centre.
  • Kumamoto Milling: Production at the Kumamoto factory and the Koshi rice mill was suspended.
  • Fuji Film Kyushu: Production at their Kumamoto factory was suspended.

Link to Part I>>

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Note:

1. Source: http://www.autonews.com/article/20160424/OEM/160429922/toyota-estimates-loss-in-output-from-japan-quakes-at-80000-vehicles

2. Source: http://www.bloomberg.com/news/articles/2016-04-18/toyota-seen-losing-277-million-from-japan-earthquake-stoppages

3. Ibid

4. Source: http://www.autonews.com/article/20160422/OEM01/160429944/gm-to-idle-4-n.a.-plants-for-2-weeks-after-japan-quakes-disrupt

5. Source: https://newswitch.jp/p/4395

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