Yet another corner of the globe was devastated by the unrivalled power of the earth this week, as Japan was hit by the strongest earthquake they have ever recorded. The destruction wrought by the quake and the violent tsunamis that followed it is almost impossible to comprehend, and the newspapers every day are filled with heartbreaking images of death, chaos and, occasionally, glimmers of hope.
If you want to donate the the Red Cross’s disaster relief funds then it is easy to do so, and I am sure that every penny will be appreciated, and hopefully used to help rebuild this currently floundering nation. Simply click on this link to donate.
As well as the humanitarian casualties of this natural disaster, there are of course more economic implications. With much of the country currently without power, business have simply ground to a halt, and the effects of this globally will be felt. In some industries, such as oil, decreased demand means cheaper oil for the rest of us, but with reference to industries such as Japan’s flourishing automotive companies, the silver lining will be a lot harder to find.
Following the quake, shares in Toyota fell 7.9%, Honda 6.5%, Nissan 9.5%, Mitsubishi 11.8% and Isuzu 9.2%, as one of the most concentrated manufacturing centres of some of the world’s biggest car brands had to adapt to deal with the current crisis. Production is currently halted in most, and shortages of both new cars and cars parts are expected in the coming months. Of course the other manufacturing factories around the world may be able to jump in and take some of the workload, but this remains to be seen.
What do you think is the short term fate of the Japanese car industry?
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