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The New Challenges for Japanese Automakers

by admin in cars

The problems that have struck Japan and its car manufacturing companies have been undeniably mind-blowing. If it happened to any other culture, the speed with which Japanese companies have been able to reset and recover would probably have been slower. Kudos goes to the Japanese for their resilience and perseverance.

With the auto industry, it was a devastating blow and while major companies like Toyota, Nissan, Honda, Mitsubishi and Isuzu have plants and factories elsewhere, key parts were still being made in Japan; in places affected by the earthquake and tsunami. It was literally a mad scramble to save parts and equipment in order to keep the business going. Most of these car companies have not even been able to fully recover like Nissan which has an enormous backlog of order from Europe and other parts of the world.

Honda had to cut production because even if it has the Ohio plant, some engine parts were only made in Japan. Some shifts have gone on half shifts and this has affected the economy of the area the plants are located.

The challenge is how to get back on track and find suppliers who are just as good, if not better for crucial car parts. Japanese firms also have to deal with permanent damages and a shattered image. This image is both internal and global. Employees need morale boosters in order to meet the challenges facing the company. The companies have to start reassuring the global community that their products are safe and not tainted in any way.

The companies will also have to start raising finds to rebuild lost infrastructure and equipment. It’s a difficult road ahead, and soon the preventive measures for a slow production will no longer be sufficient. Korean cars and other countries are waiting in sidelines for a foot in the door so that they can
begin to assume a more global face as an country with good car products. Fortunately, the international market is behind the Japanese companies 100%.

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