Japan Earthquake: Honda will suspend production image

The Japanese automaker Honda will suspend the entire production in Japan at least until March 20 following Friday’s massive earthquake.

Moreover, some of the world’s biggest companies could face severe supply-chain problems after the earthquake and tsunami in Japan if transport links there remain disrupted in coming weeks.

“There is no way to get our products out, even if we make them, with the roads and distribution system damaged,” a Honda spokesperson said.

Meanwhile, the firm said in a statement that it would “fully cooperate” with rollover power outages planned by Tokyo Electric Power .

Honda said the production halt will cost it about 4000 vehicles a day.

Another bad news is that Honda has confirmed that one of the plant workers, a Japanese man, was killed and 30 were injured in Friday’s earthquake, but the two Swindon workers are alive and well.

“Honda would like to express its sincere condolences to the family of the associate who died as a result of this earthquake. Our thoughts and prayers are with the people of Japan and all those injured or displaced by this tragedy.”

The recent earthquake has rigorously damaged the Honda assembly plant and research and development center in Tochigi, Japan.

Most of the Honda vehicles sold in US are built in Japan but the popular models of the company such as Accord and Civic are built in US itself.

Its shares closed down 6.5 percent at 3,095 yen before the announcement, while the benchmark Nikkei 225 average sank 6.2 percent.

Image credit: STR/AFP/Getty
Source: Reuters