GKN expects its business to continue to be hit by the earthquake in Japan

Article by Christian Andrei, on April 11, 2011

British industrial group GKN anticipates that its automobile business will continue to feel the effects of the March 11 Japan earthquake in the short term, the company’s chief executive officer, Kevin Smith, stated on Monday. However, such adverse effect on the auto business would be partially offset by the growth of the company’s other divisions.

The earthquake disrupted the company’s complex supply chain in Japan. Due to the massive damage that the earthquake caused, the country’s biggest automobile companies such as Toyota Motor Corp., and Nissan Motor Co., suspended production at their facilities.

The disruption also affected the manufacturers abroad, especially those in Europe and North America, as the component supply problems from Japan halted or reduced their production in their factories.

According to Smith, the Japanese Original Equipment Manufacturers (OEMs) are contemplating on resuming volume production by April and May.

It may take some time before the industry can make up for on the production losses through the first half of the year. GKN reported a 51 percent increase in pretax profit to 107 million pounds ($175 million) during its first quarter in 2011.

The company’s strong performance in its powder metallurgy division contributed largely to the increase in profit. Aside from auto parts, the company also produces airframes for Boeing and Airbus.

Topics: gkn

If you liked the article, share on:


Login or Create new account to add a comment!


We’ve seen quite a lot of intriguing stories in the age of Internet (where the most interesting part was revealed before the story unfolds). Some are from movies and novels...
by - October 26, 2016
Many people have long known that the new 2018 RS5 was being developed by Audi AG. Enthusiasts the world over were excited when a prototype was seen running on the...
by - October 26, 2016
It was only recently when BMW officially debuted the new 2017 5-Series Saloon (G30) online. At that time, this range revealed that it had driving dynamics that was the best...
by - October 26, 2016
Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016