Japan Earthquake Caused Severe Loss for Toyota, Nissan, Honda and Sony

A devastating ea rthquake stopped the production in major automobiles as well as electronics manufacturing industries in the southwestern coast of Japan. This 2016 earthquake occurred in a series mainly affecting the Kumamoto Prefecture of Kumamoto city in Kyushu region of Japan at a depth of 10 kilometers and magnitude of 7.0 on April 14.

This quaked has not only taken lives of 41 people and many were injured. B
ut also has destroyed many buildings and infrastructures.

This earthquake mainly affected the business hub of Japan. Among these, the reputed automobile industry, Toyota suffered a severe loss of 30 billion yen ($277 million) approximately. The most of the assembly plants of Toyota across Japan have reported the suspension of operation and they have also said that the suspension will last for another week. Since the Kumamoto region is still experiencing aftershocks, therefore Aisin Seiki, key supplier of Toyota, has stopped the supply of motors, engines, semiconductors and other subsidiary parts. The margin of profit for Toyota, world’s top carmaker company, has been declined from 6.8 percent to 5.8 percent. The Toyota Company has been undergoing a loss since February by shutting down some of the assembly plants due to severe fire explosion for one week. As per calculation, the company has suffered a loss of 56,000 vehicle production by middle of this year.

The president of Toyota said that the company will take some time near about the end of September to make up for this loss. As Toyota Company is working hard to recover as fast as possible by the end of June and is also taking care of their reputation as one of the world’s leading car manufacturers should not get hampered.

The other leading car manufacturing companies such as Nissan and Honda have also suffered quite damage in their production due to this tremor. The profit line for these two companies has also crumbled to some amount. The production of both four-wheelers and two-wheelers has come to a halt since April 16. The names of some of the small car manufacturing companies which have suffered due to this earthquake are Daihatsu, Koichi Sugimoto, etc.

The 2016 earthquake not only has devastated the automobile manufacturing companies but the reputed electronics manufacturing companies are also somewhat affected. Among these most popular companies which have suffered the consequences of damage are Sony and Renesas Electronics are quite noticing. These companies have also stopped their production after the earthquake hit the Kumamoto coastal region. The factory of Sony in the Kumamoto region which was producing image sensor for smartphones has also been closed since aftershocks.

Due to this severe earthquake, as per the local report, many restaurants and retailer shops, supermarkets in the area were also affected.