Undermining of Japan's auto industry

It takes to bring much to a halt, not according to John Mendel, CEO of US subsidiary, Honda also an automotive assembly line "something as small as a needle speedometer."

It is a doctrine that has the automakers driven home after the earthquake and tsunami, the Japan on 11 March struck, killing tens of thousands and all, but had to shut down the country's auto industry for most of a month. Since then, the lack of different parts and components, have forced some as small a speedometer needle, a sharp decline in the production of Japanese automakers.

The disaster led many companies such as Toyota, Nissan and many car parts makers, to consider whether she should reduce their dependence on factories in Quake-prone and increasingly cost-intensive Japan built. The so-called "hollowing out" of the Japanese automotive industry was in progress for a number of years, but the pace seems certain that to speed up the course of the March accident.

The race of the future of rear-view mirrors for ethanol fuel, Indy 500 driving a number of important changes to the daily has brought. Here is our top 10. Life Inc.: Modern man saves on food life Inc.: Hey buddy you can $2,000 spare parts? Her career: Downturn a "black Mancession"

"I understand completely, that we not on with only a desire to protect of the production in Japan," defendant Toyota CEO Akio Toyoda last month, as he announced that the automaker had overthrown January March profits by 77 percent.

Although the disaster occurred in the last weeks of the quarter, it Toyota more than 1.25 billion cost losses. This number is expected to rise significantly in the coming months. Only by end of March, an estimated 170,000 units of production lost the manufacturer. The number will probably surge production is closer to the million mark before Toyota completely back to normal, that wait until November or December.

Toyota is by no means alone. Honda, Nissan, Mazda, Suzuki... is there no Japanese manufacturer, is not to feel that the effects of the crisis. And the disaster also beyond the borders of the home Islands. Honda last week revealed production of the new 2012 civic produced at plants in Indiana and Ontario, not back to normal "at some point in the autumn."

But the greatest impact of the disaster was in Japan, where more difficult for automakers there alternative sources was in short supply, including onboard microprocessors, resin and rubber parts for parts.

Still, this is just one reason why automotive executives rethink where they need to put to their factories. The 110 billion yen loss attributed to the earthquake was provided by 290 billion yen in losses by moving the exchange rates in the shade.

With the dollar record low approaches against the yen it's "increasingly looked like only [automakers] could afford this to build in Japan are luxury cars and products for the domestic market," said John McElroy, a long-time automotive analyst and host of the TV program "Autoline Detroit."

With almost half of their production based in Japan is Toyota clearly the most vulnerable to faults, whether they rock the ground or financial markets. The automaker says, that a Yen met appreciation of the Japanese currency in a 30 billion yen to its bottom line translated. Toyota expects little moderation in the coming months and forecast of the yen is now 86 yen per dollar, compared with a previous projection of 85 to 1 will reach.

A the most cautious and conservative of the Japanese automaker, Toyota has nevertheless production offshore moves at an ever-increasing pace. But it lags Honda and Nissan, the latter now produces nearly a quarter of its total volume at home market plants.

Japanese car and truck plants a total of 9.6 million vehicles produced vehicles in the United States in the year 2010, compared to 7.7 million composed. Due to the lack of Quake-related, analysts say, production volumes come close to parity in 2011; While Japanese 'Transplantation' lines had to Detroit back plants, trimming and PCs, Korean and European decision-makers picking are largely the slack.

Longer term, most observers expect a continued undermining of Japan's automotive production base. Continue to benefit the United States. It became clear to brands like Toyota and Honda could achieve comparable productivity and quality levels with U.S. workers, the automaker saw numerous advantages for the construction of vehicles in the same market, where they are sold. Shipping costs were lower, for one thing, and with a just-in-time production based on an automobile manufacturer better to respond to sudden changes in the demand of the market.

It is also a practical reality. In recent years, automakers have as Toyota had a more difficult time young workers lure their plants, where many employees in Spartan traditionally lived corporate barracks, McElroy notes. Rapidly diminishing population of the country is the challenge of keeping trained and motivated employees deterioration.

Japanese car manufacturers are not the only their, factory plans to reconsider.

German chemical company Merck was influenced by the March 11 the providers, Northeast operates a one-of-a-kind color pigment plant in Japan's Quake devastated. Ford had part of a series of car manufacturers, orders for certain color depending on, that plant products put an end to areas. The plant before recently again operations, but Merck says that it will now build an other pigment plant outside of Japan.

Other suppliers, such as Renesas, one of the world's largest automotive microchip are provider, under pressure to move at least part of the production. And many suppliers moves operations to stay close to the customers such as Toyota or Nissan.

The Japanese automotive industry is expected to remain a strong force, but more and more manufacturers supply their brands of plants, which are less prone to earthquakes, exchange rates and other disadvantages which make the land of the rising were a hard place Sun, to do business.

© 2011 msnbc.com.  Reprints