Due to the recent events in Japan, it is projected that roughly 5 million cars worldwide will not be built this year, out of the 72 million that were expected to be sold. Many automakers are shutting down plants in Japan including Toyota and Honda. Even G.M. is affected by this as they are shutting down a plant in Louisiana. Currently, 13% of the world's automotive production is out of commission. The automakers do not see this as an "all clear" situation anytime soon.
I believe that this will eventually turnaround. Japan took a devastating hit, but there is constant effort currently in rebuilding. Automakers will have to operate under full capacity for a while strictly because that is all they can do. Many Japanese automakers are affected by this, but even U.S. makers are taking a hit in production because of parts made in Japan are in the radiation zone. These automakers have no choice but to wait it out and hope for the best.
2 comments:
All the auto manufacturers are going through this same issue, and reestablishing there factories will take some time. Toyota has obviously been a very successful and efficient car manufacturer, which had led to their world dominance. Toyota as well as other companies will need to innovate and find products that appeal to the current economy. I think its just a matter of time before Toyota is back on track, and maintaining their number 1 spot worldwide for car manufacturing.
I agree with both Eric and Zach. It is very unfortunate that auto manufacturers everywhere, especially in Japan, are being affected by this disaster. The terrible tragedy that hit Japan was in no ones control. However, HOW Japan and Toyota go about rebuilding their country and rebuilding their company's strength/image is ALL in their control. It definitely will take some time before both get back on their feet. Japan is a strong and efficient country and Toyota is a successful and respected business. These are factors that both Japan and Toyota will be able to use to help them get out of this recent crisis.
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