Last Thursday’s earthquake that hit Japan’s Kyushu island will have implications on Japan’s auto sector, as the quake has affected several plants that are crucial to Japan’s automotive industry’s supply chain.
Renesas Electronics, which supplies electronic control modules many car manufacturers, has suspended production at its Kumamoto plant – the area most affected by the quake. At this moment, it is unclear when the plant will resume operations.
Toyota has also announced that it will suspend production on its domestic plants in stages between today and 23 April.
“Decisions regarding recommencement of operation at plants in Japan will be made on the basis of availability of parts.
“We will continue to make all possible efforts to offer support to the residents of Kyushu, and hope for the soonest possible recovery of the affected areas,” said Toyota.
Toyota relies heavily on parts manufacturer Aisin Seiki, which has a plant in Kumamoto, to produce engine and transmission components, as well as doors.
Mitsubishi Motors is also reportedly shutting down its Okayama plant in stages, also due to disruption in its parts supply chain.
Honda also has a motorcycle and general purpose engine plant in Kumamoto. The plant has since been shutdown. “A decision to commence operations on April 18 or later will be made based on factors including the state of the facility,” said Honda.