Home > Economy > Toyota Losing $73 Million Per Day; Nikon and Canon Suspend Operations

Toyota Losing $73 Million Per Day; Nikon and Canon Suspend Operations

March 16, 2011

Before working in the automotive business I sold photo equipment for 3 years. My first camera was a Mamiya; then a Minolta, and then the king of SLRs, Nikon. Today, I still own several film Nikons and a couple digital SLRs. Anyone who knows me, knows photography is my passion. Nikon and Canon are the quintessential equipment for many photographers around the world. I know many photographers will be saddened to learn of the destruction of plants in Northern Japan. Professionals and amateurs alike have great admiration for the high quality of both Nikon and Canon photo equipment. As with all things though, cameras can be replaced – people cannot. First and foremost on my mind is the recovery and safety of the people of Japan who suffered this catastrophic event. I extend my heartfelt condolences to the Japanese people.

Toyota Production Interupted
After selling photo equipment, I worked in the automotive business for 20 years. I worked for Jaguar, Honda, and Toyota. In 2008, Toyota surpassed General Motors as the number one seller of vehicles in the world. I heard earlier today on Dylan Ratigan’s show that Toyota production plants are inoperative because of no power. Additionally, it will take Toyota 2-4 weeks to recalibrate all their machines and robotics as they were affected by the 9.0 earthquake. They may not be back in full production for 1-2 months. That will create supply problems. It will affect Toyota auto dealerships and parts availability. Long Beach is the main port of entry for Toyota vehicles – it will be affected.

Business Insider reports:
Goldman Sachs expects Toyota to take a $73.3 million profit hit due to an expected reduction of 40,000 new vehicles from its fleet (via MarketWatch).

What else we know, according to Goldman:

* Nissan is losing $24.7 million a day; four plants closed until tomorrow, two until end of the week

* Honda is losing $24.7 million a day; production is halted until March 20

Read more: http://www.businessinsider.com/goldman-sachs-toyota-losing-73-million-a-day-2011-3#ixzz1GjJeERXg

Nikon and Canon Suspend Operations
In the last two days major camera makers Canon and Nikon have both announced a suspension in production operations. In a statement from Canon Inc, the company announced that operations at 8 production and development plants in northern Japan had been suspended, possibly for “more than two or three days”. Meanwhile Nikon has stated today that operations at its Miyagi Prefecture factory which produces advanced DSLR cameras, will be “virtually impossible to resume in 14 days”. Additionally, other major manufacturers are also reporting operational issues including Panasonic and Sony while they deal with the obvious safety issues, lack of power, and possible structural damage. Of course these are just the camera makers themselves, but factor in the strong possibility that factories that supply parts may be lost or at minimum behind schedule, and the issue of huge infrastructure problems that will effect both the supply of new materials and delivery of completed items, and you can deduce that things won’t be getting back to normal anytime soon. Finally, there’s the looming threat of nuclear disaster, which could have a devastating impact not yet accounted for.

It’s unknown exactly what sort of toll all of this will take on the economics of the industry, and hopefully it is minimal, but it wouldn’t be unreasonable to think that we should expect delays in new camera supplies and possibly a more painful sting at the checkout register.

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