Toyota estimates production loss of 40,000 vehicles due to Japan earthquake
By Steph, 15 Mar, 2011. 0 Comments
2011 Toyota Prius
The recent earthquake in Japan has damaged several of Toyota Motor Corp.’s key production facilities in the country. The industry is hampered further with electric shortages across the nation as operations of the nuclear power plants were also affected. TMC estimates that as a result, it could have a production loss of as many as 40,000 vehicles. Shiori Hashimoto, a Toyota spokeswoman, said that 12 plants will remain closed throughout the country until March 16. For each day of post production in Japan, Toyota’s profit will decline by 6%, or JPY6 billion ($72 million).
According to a Bloomberg report, Goldman Sachs estimates that Nissan and Honda will both lose an additional JPY2 billion ($24 million) a day. Toshihiko Matsuno, a senior strategist at SMBC Friend Securities Co. in Tokyo, said that considering the situation at the nuclear power plants, he doesn’t know how soon carmakers can return to normal operations.
He believes that if production is resumed, the manufacturers can post sales since the U.S. economy is signaling a recovery. So far, investors have been seen to cut their losses and sell TMC stock. Toshikazu Horiuchi, a market analyst at Cosmo Securities Co. in Tokyo, said that no one is currently able to gauge just how big the damage from the earthquake is.
Gallery: 2011 Toyota Prius
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