Mazda spends $62.8 million in past quarter to fix earthquake-related damages

Article by Christian A., on April 27, 2011

In the past quarter, Mazda Motor Corp. posted a 5.2 billion yen ($62.8 million) charge to fix the damages it incurred due to the March 11 earthquake in Japan. Mazda said that it may attain prequake production levels towards the end of the year.

CEO Takashi Yamanouchi said that in May and June, the utilization rate of Mazda's plants in Japan will range from 70 percent to 80 percent. He said that this number will go up in October.

At Mazda’s earnings announcement, Yamanouchi said that he hopes that starting in the second half when it’s fall season, it will have full production.

Toyota Motor Corp. and Honda Motor Co. have also said that normal production schedules will resume within the year. Mazda is based in the western city of Hiroshima, and so actually, it wasn’t affected much by the earthquake and tsunami that came after that. Mazda’s operations at its two plants in Japan are limited but are operating steadily.

At Mazda’s plants overseas, overtime work has been disallowed. Yamanouchi said that Mazda doesn’t intend to close these plants due to parts shortages.

Mazda said that towards the end of March, it lost 46,000 units of domestic production due to the quake.

Mazda’s earthquake-related charge has aided in bringing down the operating profit 8 percent to 10.6 billion yen ($127.9 million) in the fiscal fourth quarter that ended March 31 from 20.5 billion yen ($247.4 million) the previous year.

Topics: mazda

If you liked the article, share on:

Pin It

Comments

Recommended

Uber has resumed its self-driving tests after having had to temporarily put them on hold following a crash in Arizona on Friday. A Volvo XC90, the test vehicle involved in...
by - March 30, 2017
Owning a supercar in the past meant you’ll have to compromise. But there’s no need for that anymore - thanks to the Ford Performance engineers. The company ensures that you...
by - March 30, 2017
Tesla marked a major milestone as it surpassed Ford in market capitalization. Automaker Tesla, formerly known as Tesla Motors, closed out the trading on March 27, 2017, with a market...
by - March 30, 2017
The mid-cycle facelift for the Mercedes-Benz's S-Class have been disclosed to the public eye via these leaked shots. The images that recently surfaced and others like it were published online...
by - March 30, 2017
Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries