Thursday, March 31, 2011

Collateral (Economic) Damage of Japan's Disaster (Carscoop)

The shortage of parts and electricity problems in Japan in the aftermath of the Tohoku earthquake may delay the production of at least 500,000 Toyota vehicles, according to market research company Advanced Research Japan.
The world's largest carmaker may subsequently see its operating profit drop by at least 100 billion yen ($1.2 billion) in the 2010 fiscal year (ending March 31 2011) and up to 200 billion yen in the 2011 fiscal year. Auto analyst Koji Endo says any impact on production destined for export will affect earnings even more. “Hardly any cars will be built in April and a very low level of production will continue from May,” Endo was quoted as saying by Bloomberg.

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