Japan Earthquake Halts Production at Toyota, Mitsubishi and Other Automakers

Several major Japanese automakers, including Toyota, Nissan, Mitsubishi, and Daihatsu, have suspended production at multiple plants following an earthquake that struck Kumamoto Prefecture five days ago. The region hosts key manufacturing facilities for these companies. The main challenge for the automotive industry is not the physical damage to assembly plants, which can be relocated, but disruptions to the supply chain. Most manufacturers operate on a just-in-time system, where parts arrive only hours before installation, making any shortage potentially halt production.

Japanese automakers have learned from past disasters like Fukushima and maintain parts inventories sufficient for two to three days, which explains why production suspensions were only reported days after the earthquake. Currently, the impact has not reached the Israeli car market, as importers there hold stockpiles lasting several months and shipments en route provide additional buffer.

Specifically, Honda has stopped motorcycle production in the affected area. Toyota suspended operations at its Tahara, Miyata, and Canada plants, which produce Lexus GX and IS models and engines, as well as the Toyota 4Runner and Lexus NX models, though some are not regularly imported to Israel. Infiniti halted QX80 production, and Nissan paused Rogue manufacturing, which is not imported to Israel. Mitsubishi also stopped production at its Mizushima plants. Suppliers such as AISIN, a major parts provider, and semiconductor maker Renesas have also shut down factories in the disaster zone.