Outstanding Toyota Motor Corp., the world's largest carmaker, is really getting hit hard. The and severe earthquake followed by terrible tsunami last week damaged several of their main production facilities in Japan. As a result, Toyota's massive production is reduced at least 40,000 units.
Shiori Hashimoto, a authorized spokesman for Toyota City as quoted by page of autoevolution.com mention his powerful company does not only feel a direct result of the earthquake. Shocks of 9.0 Richter scale caused destructive nuclear reactors providing huge electricity supply for the amazing factories of Toyota.
It said there were at least 12 official plants of Toyota's production was discontinued until 16 March. Until last January, Toyota has already produced vehicles for 234.045 and it is as many as 38 percent of the elegant car.
As a result, profits that powerful car manufacturers cut 6 percent, or 6 billion yen (USD 643.9 billion) every day. According to Bloomberg, Goldman Sachs estimates that two other Japanese manufacturers - Nissan and Honda - to lose 2 billion yen per day.
"We do not know how long it takes for producers to return to normal operations" said Toshihiko Matsuno, a senior strategist at SMBC Friend Securities Co. in Tokyo as quoted autoevolution.com.
Mentioned shares fell 7.9 percent in trading today the Nikkei. This figure is the lowest since December 2008, where the closure was in 3310 yen per share figures.
"This earthquake affected a wide area, and the possible economic impact of the damage could exceed 20 trillion such as the Kobe earthquake in 1995," said Minister of Economic and Fiscal Policy of Japan, Kaoru Yosano.
Since the earthquake occurred, powerful Toyota ceased operations, including official headquarters in Tokyo, Higashifuji facilities, office of Tochigi, the Yamanashi offices, advanced facilities and assembly of Toyota Motor Tohoku as subsidiary of TMC vehicle. Some authorized offices which ceased operations such as Toyota Motor Hokkaido Plant, Toyota Motor Tohoku Plant, Central Motor Corporation Miyagi Plant, Kanto Auto Works Iwate Plant.
