It's very huge! 619 Million U.S. Dollar to Japanese Automotive Components Industry

Carlos Ghosn, President and CEO of Nissan Motor Co., when reviewing the factory when it's stopped production in Iwaki, Japan

TOKYO- To restore the Japanese automotive component industry due to the earthquake and tsunami on 11 March, the Japan Development Bank (Development Bank of Japan / DBJ), which supported the government provides the funds 619 million U.S. dollars.

Target end of the plan, the automotive industry that desperately need these components both in Japan and abroad can be re-produced under normal conditions.

Interruption of the supply chain of automotive components is the biggest disaster for Japan after World War II. The Japanese government realized that the role of component suppliers is very large companies. The proof, so medium and small companies are not producing because their plant and work equipment is damaged, large car manufacturers, like Toyota, Nissan, and Honda, stagnating production.

20,000 companies
According to CNN, who received reports from journalists in Tokyo, the funds from DBJ was used to help 20,000 companies as well as component suppliers to increase their working capital. It's just not explained when the fund started dikuncurkan certainty.

Further, the investment funds not only to help the company repair the damage component suppliers and equipment manufacturers work, but also using new technologies, such as cloud computing to help the current production system. In addition, also prevent the production constraints if another disaster occurs.

Nevertheless, there is also the question of whether these companies with the help of these components will move factories out of Japan? Another source said, actually had a lot of large companies and medium-sized Japanese component manufacturers have factories outside the country.

Explained, the company moved the factory because of the slower growth in Japan, the yen is getting stronger, and increased energy costs expensive. After the earthquake and tsunami on 11 March, the anxiety increased again because the manufacturers could disrupt their investment and production!

Reportedly also, to distribute the aid, DBJ cooperation with the Japan Auto Parts Industries Asscociation. Currently, Japanese automakers have a very sharp decline in profits. Another problem is the uncertainty that also threatens the power supply in the Kanto region, contributing 38 percent of the Japanese economy and in the vicinity of Tokyo.

Source:
CNN