March 14, 2011 – First the 9.0 earthquake, then the Tsunami, fires, and nuclear reactors on fire in Japan.
What is the impact on automakers after the Japanese earthquake and all these natural disasters?
Lou Ann Hammond, CEO, www.drivingthenation.com, John Avlon, CNN, and John Batchelor talk about the impact on a global level.
The people within a 30 kilometer radius has been evcuated. The Prime Minister told the people around Fukushima to close their windows, to wear long clothes, don’t hang your clothes outside, don’t use vents.
The car companies have halted production. The first reason is safety for the people of each car company and their families. Secondly is getting to and from work. The electricity is being shut off in rolling blackout. The trains are not running on time, if they are running. Thirdly, each day the car companies are surveying the plants for any damage done to the infrastructure. The first earthquake was 9.0, but everyday they are having smaller quakes.
Nissan lost 2,300 cars from damage after the Tsunami and a subsequent fire.
The car companies are losing money each day they do not open they lose money. Bloomberg quoted Goldman Sachs that Toyota would lose $72 million dollars in profit each day it doesn’t open. Honda and Nissan will lose $24 million in profit each day.