QUAKE HITS JAPANESE AUTO INDUSTRY HARD

By Joseph Bonney, Journal of Commerce - The earthquake and tsunami that killed thousands of people in Japan also disrupted the nation's automobile indfustry and will affect supply chains worldwide, IHS Automotive said.

"Although the human cost is of paramount concern, the ripple effect of the stoppages to supply and production in Japan will be felt in many parts of the world, including the United States, China and Europe as many key parts and technology are exported to global operations from Japan," the report said.

Auto assembly plants and suppliers' factories were damaged or have had to suspend operations because of power shortages. Transportation infrastructure also has been affected, along with communities where automotive workers live.

Several assembly plants in and around the northern Miyagi Prefecture have been shuttered, primarily Toyota, Honda and Nissan facilities, IHS Automotive said.

"Many more auto plants throughout the country are at risk of closure, some owing to temporary rolling blackouts that are being considered in order to conserve power in light of the damage to several Japanese nuclear power plants, and some through disruption to the country's transport infrastructure, affecting everything from parts delivery, personnel mobility and shipping activity at the country's ports."

The report said Toyota will idle all its Japanese plants through Wednesday, halting nearly 45 percent of the company's global production. Nissan reported damage to several plants and suspended all Japanese production through at least Tuesday. Nearly 2,300 vehicles awaiting shipment at the Port of Hitachi were destroyed by the tsunami, Nissan said.

Honda closed its research and development facility north of Tokyo after earthquake damage caused a cafeteria wall to collapse, killing an employee. The company has idled several plants through March 20, including engine, transmission and chassis parts plants.

Suzuki has closed all its Japanese plants until at least Thursday.

Mazda said none of its facilities, located primarily in southern Japan, were affected by the disaster but that it would idle production. Mitsubishi has shuttered plants and said they will remain idle until at least Tuesday as it coordinates shipments with suppliers in the quake-damaged zone.

Subaru said it planned to reopen its plants today after a weekend of shutdown caused by power shortages and damage checks.