What has happened to Toyota after the tsunami in Japan? 0

Recently there was a devastating tsunami in Japan that lost 350 lives, destroyed buildings and also many cars. Measured at  7.3 magnitude on the Richter Scale over 2 months ago the disaster struck and just recently another earthquake hit the same region of the northeast coast. With the car industry being severely affected from the shattering natural disaster, what does this mean for Toyota? Toyota is one Japan’s largest and most reputable car manufacturer; their vehicles are very popular throughout major countries. They are indeed the world’s biggest car manufacturer in terms of volume of sales made.

It will be interesting to discuss the immediate affects to Toyota after the biggest earthquake in Japan for 140 years.

Immediately Toyota announced the stop all of its operations (On March 13th 2011). Then exports of the car were halted as all major ports were shut down. This meant that exports of Toyota’s cars couldn’t be shipped out. The fact that many of the new cars that were due to be shipped out were wiped out meant a huge blow for Toyota.

Some of Toyota’s production plants have also been shut down. Models such as the Toyota Yaris Sedan and the Scion xB and xD will have their development halted. Another plant that Toyota runs which is associated with Panasonic Corp has also had its production suspended. Hybrid vehicle batteries are made here. Closures of such important plants, even for a small period must be extremely disappointing for Toyota.

Not only is Toyota’s production halted in Japan, but it has affected business abroad with some of Europe’s plants and factories suspended from the end April to early May. The places in question are two engine factories each in Poland and the UK, along with auto plants in the France, the U.K and Turkey. Such closures may have unexpected damaging long term implications for some of Toyota’s production on parts. The closures were mainly due to part shortages.

It may take a long to asses to the real long term effects to Toyota as a company due to this unfortunate natural disaster. In fact this may never be measured properly. There is an obvious shortage of part production, stoppage and halt of new vehicle developments along with sales in Japan and overseas being cut, it remains to be seen how Toyota will recover and how quickly.

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