Thread: Japanese Tsunami Batters an Auto Industry Still Reeling From Recession

It could take weeks to determine the exact human toll caused by the tsunami that devastated huge swaths of north-eastern Japan. In some regions, thousands of people remain unaccounted for and, making matters even worse, the threat of a nuclear melt-down at the Fukushima Daiichi plant has triggered fears of a further environmental disaster on the horizon.

Japans automotive industry, still reeling from the global recession, has also been hard hit. Numerous plants have been closed, either due to damage caused directly by the 8. 9 magnitude quake and subsequent tsunami, or because of rolling blackouts and a lack of infrastructure as relief efforts struggle to cope with the disaster.

While many Japanese automakers have factories in the U. S. , some models (like the Toyota Prius and Honda Fit) are built only in Japan. Dealerships in North America and throughout the world could face a severe shortage of new vehicles and spare parts for weeks or months to come.

Toyota has closed 12 plants until March 16, according to Bloomberg news. The companys profit will be cut $72 million for each day of lost operations in Japan – though financial losses currently seem trivial in the midst of such an enormous tragedy.

Speaking with The New York Times, Cordy Cerami, the general manager at Infiniti of Montclair, a dealership outside Los Angeles, said the situation remained unclear whether car plants and those of suppliers were still operational.

While the disaster could have a major impact on his business, Mr. Cerami said that concern remains for the people of Japan first and foremost.