The Japanese automotive industry is famous for its just-in-time production system, so effective that carmakers all over the world have emulated it. Unfortunately, despite Japan’s efforts to plan for every eventuality, preparing for an earthquake is almost impossible.
As you may know, there was a severe earthquake last Monday in Niigata prefecture, 155 miles north west of Tokyo. Riken, a large automotive parts supplier with its main factory based in Niigata, has been obliged to stop production due to damages caused by the earthquake. Riken produces 70% of universal joints and 40% of piston rings in Japan. The Nissan subsidiary JATCO has also been forced to stop producing its gearboxes.
The effects of this disruption to the supply chain are significant. Nissan will stop producing cars in its twelve Japan-based factories until next Monday. Toyota’s production of cars has been suspended until Sunday. Honda will decrease its production for the duration of next week. Suzuki will have to decrease its production by 10,000 units for five days.
What a mess for such a proud and highly-organised industry. We can be sure that Japanese carmakers are already working on a solution in preparation for the next earthquake.
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