Tsunami Japanese, Korean Car Industry Lucky

Sales of Ford and Hyundai is expected to high, because the Japanese vehicles affected by the disaster.

Enormity of the earthquake and tsunami that struck Japan brings a huge impact on the global automotive industry. Although there is some good news about nuclear power plant (NPP) Fukushima, the problems facing Japan are still far from finished.
Vice President of Automotive & Transportation, Frost & Sullivan Asia Pacific, Vivek Vaidya, said the automotive industry is one of the most severely affected by the earthquake. Not only the principals and suppliers in Japan, but also the world's automotive industry as a whole.
Short-term effects for the Japanese automotive industry, he added, include the cessation of production, lack of supply of spare parts, and overall impact on the country's economic performance.
"While globally, the disaster also means the cessation of production of Japanese brand cars in the United States and Europe, which complements the challenges faced by Japan after strong car brands from America, Europe, and Korea," said Vivek in a written statement received VIVAnews. com in Jakarta, Friday, March 25, 2011.
Meanwhile, for the short-term effect, he continued, is very influential on the financial performance of companies in Japan. Therefore, the cessation of production will cause the loss of income and resulted in the inability to cover losses in the fiscal year which ends March 31, 2011.
Vivek said, the impact of Toyota's supply chain is at the secondary level with production losses estimated at 40-50 thousand units for this period. While the losses suffered by Honda is very high, where the production decreased by 30 to 35 thousand units. For Nissan, who suffered production losses ranging from 25 thousand units.
"Nevertheless, the possibility remains open for each firm is close loss in 2011, if demand for vehicles remains strong," said Vivek.
Vivek said the natural disasters that occurred in Japan cause the cessation of car production at several factories in America and Europe as the supply of components from Japan stopped. However, this will open opportunities for Korean component manufacturers.
He estimates, Ford and Hyundai as well as other competitive brands have a chance of business growth in line with the reality of lack of supply of certain car models from Japan. Sales of Ford and Hyundai is expected to be higher, because the best-selling vehicle models, such as the Prius, Insight, and Fit affected by the disaster.
"Ford's hybrid vehicle line will be pushed forward, because of its dependence on Japanese components are low. This situation also applies to Hyundai, with the level of dependency that almost none of the components of Japan, so the line of Hyundai's compact car can be affected positively," said Vivek.

source : vivanews