The BBC reported last week that Japanese car makers, Toyota and Honda, are yet again pushing back resupplying much needed parts to their other plants and manufacturers across the globe. The Japanese Car Industry faces serious concerns on many fronts ever since the earthquake and subsequent tsunami hit mainland Japan earlier this month. It was the most powerful earthquake the island nation has on record and the world is still trying to come to terms with the scale of this disasters impact. With the death toll now in the thousands and the continuing difficulties with gaining control over the Fukushima Dai-ichi nuclear power plant, its hard to see an end it sight.
It seems silly, with all the other concerns currently facing Japan, to be concerned with the auto industry, but its actually more worrisome than a few parts not getting to where they need to go. According to US employment records, Toyota and Honda employ many people across the globe, and this current situation is likely to have far reaching affects in other markets not confined to Japanese soil. With a world market just beginning to recover after years of economic downturn, analysts are concerned at the long-term affects this will have. This situation is a huge concern for investors and employees.
These companies have practically shut down operations, and it will cost these companies millions a day. Japan is the main supplier of parts for manufacturing plants across the world. Every car is made up of thousand and thousands of parts, and if you don’t have the parts, not only does it affect production but also disrupts repairs, shortage of inventory and supplies, jobs, and the overall global economy. This may be costing the company millions, but its costing the rest of the world much more.
Now these figures pale in comparison to the vast suffering of the Japanese people, and the world is still waiting to see the result of the troubles concerning the Japanese nuclear power plant. After a long economic downturn, citizens of the world are searching for a global upswing. Many people lost their jobs, homes, and cars, and with many citizens needing to contact lenders to apply for title loans, credit, or borrow against their mortgage to stay afloat, the crisis seemed to never end. As events in Japan continue to unfold, the world must remain content to watch, wait, and hope for the best for the economy and for Japan.
