Japan Auto Profits Hit

Japan Auto Profits Hit

Toyota Motor Corp., the world’s largest automobile industry claimed that its profits have been hit after Japan was hit by a powerful earthquake and tsunami last month. This has caused a huge decline in the automobile sales in the entire country.

“There’s no doubt financial results will be influenced by the earthquake”, President Akio Toyoda told reporters today at company headquarters in Toyota City, Japan, without elaborating. “Ports, industrial complexes and roads are destroyed”.

Car makers such as Toyota, Honda Motors, and Nissan Motor have stopped manufacturing after heavy earthquake destroyed the country and knocked out power plants. There has been huge electricity shortage in the country. This has caused a record decline of the sale in the last seven months.

The auto manufacturers have lost approximately 140,000 units last month due to severe shortage of electronics parts, rubber, and plastics.

Satoru Takada, an analyst at TIW Inc. claimed that it would take a huge time for Toyota and other auto manufacturers to overcome the loss that happened due to the severe earthquake across the country.

The auto sales went down by 37 percent to only 279,389 last month and this has been the largest drop since 1968. The sales of Lexus-brand cars went down by 46 percent.