ToMoCo, the world’s largest automaker by volume, may experience output loss of at least 40,000 vehicles after factories were damaged and electricity was lost due to earthquake damage. The company closed 12 Japanese plants through Wednesday, and faces losses of 6 billion yen for each lost day. Honda and Nissan lose about 2 billion yen for each lost day.
“We don’t know how long it will take for manufacturers to return to normal operations, with the current situation at the nuclear power plants,” said Toshihiko Matsuno, a senior strategist at SMBC Friend Securities Co. in Tokyo. “If they can resume output, they can sell as the U.S. economy is signaling a recovery.”
Toyota fell in Tokyo trading, hitting its lowest mark since December of 2008. Nissan and Honda also plunged 9.5% and 6.5 “It’s panic selling,” said Toshikazu Horiuchi, a market analyst at Cosmo Securities Co. in Tokyo. “No one knows the complete picture yet on how big the damage will be from the earthquake.”
-By: Stephen Calogera
Source: Detroit News