The Car Industry After Japan’s Natural Disaster

THE CAR INDUSTRY AFTER JAPAN'S NATURAL DISASTER Japan suffered a great loss during the 9.0 earthquake and its ensuing tsunami in early 2011. Among the industries that were hurt that day, the car industry was one of the most damaged. HERE'S THE STORY ON HOW THE TSUNAMI DAMAGED JAPAN'S CAR INDUSTRY AND HOW IT HAS FARED SINCI THE EFFECTS OF THE DISASTER " It's estimated that 230,000 VEHICLES WERE DESTROYED as a result of the earthquake and the following tsunami. BY JUNE 2011, Within the disaster relief agreement, certain individuals were able to GET OVER 15,000 REFUNDS ON THE VEHICLE TAXES REQUESTS TO THEY HAD ALREADY PAID. DEREGISTER VEHICLES poured into the Japanese government's mailbox. It's estimated that the earthquake and resulting tsunami produced 15.69 MILLION TONS OF DEBRIS. That's about 19 YEARS WORTH OF TYPICAL WASTE. PROLONGED DAMAGE [4] Due to the damage to production facilities and the energy grid, TOYOTA WAS UNABLE to produce around 220,000 VEHICLES in the one-month period after the tsunami. By the time they had fully recovered, TOYOTA HAD LOST 370,000 VEHICLES WORTH OF PRODUCTION TIME. When all was said and done, The flooding in Thailand THAILAND GM took the top spot in the auto market also caused a great deal of damage to HONDA. while TOYOTA dropped to NUMBER 4. Today, companies in Japan have begun to see their luck turn around as they move forward with REBUILDING FACTORIES, SELLING MORE CARS, AND RESTORING CONSUMER CONFIDENCE IN THEIR PRODUCTS. CURRENT STATE OF THE CAR INDUSTRY [3,4] As Japanese carmakers fell behind following the March 2011 natural disaster, sales of the FORD FIESTA and CHEVROLET CRUZE boomed. CHEVROLET CRUZE FORD FIESTA TOYOTA HONDA However, TOYOTA AND HONDA, A who suffered the brunt of the blow, 13.9% 9.6% market share REBOUNDED BY FEBRUARY 2012. market share GM topped 20% market share Chrysler found themselves holding The combined Ford and Lincoln brands last year, managed to peak at 17.5% market share 11.1% market share in February though it dropped to 18.8% by February 2012. last year, though they dropped to 15.5% by February, though it's expected to drop to 10.8% by the year's end. as well. 14 MILLION cars are expected to be sold in 2012 as opposed to the mere 12.8 MILLION of last year. THIS REPRESENTS A 9% INCREASE IN TOTAL SALES. NISSAN still managed to have a sales record despite their misfortune, selling 4.7 MILLION CARS. CONCLUSION Japanese car manufacturers have recovered a great deal since the disaster in Japan. While production facilities have been repaired, the strength of the Japanese car industry is tied to the rest of the world's economy. IF GROWTH CONTINUES AROUND THE WORLD, THE JAPANESE CAR INDUSTRY SHOULD BENEFIT AND SEE A REBOUND FROM ITS POST-DISASTER LOWS. ------- [1] http://www.japantimes.co.jp/text/nn20110616a4.html#.T-nHbStYvcZ SOURCES 2j http://www.cnn.com/2012/02/26/world/asia/rebuilding-japan-overview/index.html [3] http://www.cbsnews.com/8301-505145_162-57392372/how-the-japanese- tsunami-changed-the-auto-industry/ [4] http://content.usatoday.com/communities/driveon/post/2012/03/a-year-after-japans- quake-nissan-thrives/1#.T-n8yStYvca