From wildfires in Canada to monsoons in India, natural disasters are becoming more common these days, and scientists point to climate change as the culprit. The death toll from twin earthquakes that struck Venezuela on June 24 has surpassed 5,500 people.
At least 18 people have died due to structural collapses, including at a shopping mall, after yesterday’s 7.1 magnitude earthquake in Kumamoto in Southwest Japan, and the death toll is expected to climb as the damage is assessed. Homes have been destroyed, some 9,000 people are seeking shelter, and hundreds of businesses have suspended operations, with some needing to rebuild.
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Toyota, Nissan Production Suspended Until Friday
For the auto industry, Kumamoto has become a major global hub for automotive semiconductors, while suppliers in the region also produce CMOS image sensors, specialty engines, and plastic parts. Honda builds motorcycles there, and that production has been halted for now. Toyota and Nissan appear to be the automakers most directly impacted by the earthquake, with both having suspended operations at local plants.
Reuters reports that operations at Toyota Motor Kyushu’s Miyata, Kanda, and Kokura plants in Fukuoka Prefecture will remain suspended, depending on safety, logistics, and status of its suppliers. The Miyata plant produces the Lexus ES, RX, NX, and UX models, and about 90% of them are exported, primarily to the US. The Kanda plant manufactures engines while Kokura makes hybrid powertrains, according to Automotive News.
A Toyota spokesperson tells CarBuzz via email that Miyata production will remain suspended through Friday, while aftershocks in the region and recovery efforts continue.
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Nissan has two assembly plants in the region, and it’s not clear how long production will remain on hold. Nissan Shatai Kyushu builds the Infiniti QX80 SUV and Nissan Patrol and Armada, while the Nissan Motor Kyushu plant makes the Kicks e-Power small SUV, Serena e-Power van, and the X-Trail crossover, Automotive News reports.
Thankfully, Not As Devastating As Fukushima
Lost production is bound to impact Lexus sales in the US, but analyst Sam Fiorani tells CarBuzz that Japanese manufacturing has always been extremely resilient. He recalls the 2011 9.0 magnitude earthquake that struck Fukushima, killing nearly 20,000 people and leaving 5.2 million households without power for at least a week.
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“Assembly plants were closed for less than a month, and full production resumed in about six months,” says Fiorani, vice president at AutoForecast Solutions. Impact from yesterday’s earthquake should not be as severe. “The lost volume will likely be made up over the next few months and should not disrupt vehicle sales significantly,” he says.
CarBuzz Insight – Why This Matters:
From a Lexus product perspective, the earthquake could not have hit Kumamoto at a worse time, as the luxury brand just launched the eighth-generation Lexus ES sedan a month ago at the Miyata plant. It’s hard enough selling sedans as it is, without a natural disaster to contend with. As for Infiniti, Nissan’s struggling luxury brand sold a meager 12,300 vehicles in the US in the second quarter, and the QX80 recorded its best-ever sales in the second quarter with more than 3,300 deliveries. Every single sale is crucial as Infiniti rebuilds.
Source: Reuters
