Japan’s automotive market suffers serious production delays

Japanese automotive manufacturers are reporting that their operations will be affected more severely than they first thought as they try to recover from an earthquake, tsunami and a nuclear crisis. Carlos Tavares, an executive with Nissan, says, “This is a serious situation, and it has the potential to affect many markets, including the Americas. We are going to make sure we address the issues as fast as we can.” The company has nine vehicle and parts factories and 35 suppliers affected at the present time. Nissan’s engine plant in Iwaki was severely damaged during the quake. The crises in Japan have other companies, from chip makers to cell phone makers, uncertain about future production. Another carmaker, Honda Motor, said it has experienced damage at a number of its operations in the Tochigi area. It suspended automobile operations until March 23 at its Sayama Plant in Saitama and at its Suzuka Factory in Mie. (March 19,2011)