Thursday June 9, 2011

Japanese quake offers opportunities for M'sian car parts makers

KUALA LUMPUR: The mega earthquake that struck the Tohoku region, followed by a massive tsunami on March 11 which wreaked havoc on Japan's economy especially the automotive industry, has offered opportunities for car parts industries, including those from Malaysia.

Suguru Okubo, deputy director of advertising, Daily Automotive News, said Malaysian automotive parts and component suppliers should act quickly and offer their services to Japan's automotive makers after the disaster in the Tohoku region.

The region was home to many automotive parts and component materials suppliers. Okubo said Japanese automotive makers were now looking to source automotive components and parts from all over the world.

“The possibility is certainly open to Malaysian suppliers,” he said during a lecture for representatives of 11 Malaysian automotive parts and components makers who participated in the three-day Malaysian Automotive Industries Exposition held concurrently with the Automotive Engineering Exposition in Yokohama recently.

Okubo said Japanese automotive makers were seeking companies which had developed attractive special features.

Crippled: The Tohoku region encountered total wipe-out of machines, stocks and even workers and factory buildings by the March 11 quake and tsunami. – AFP

“They are aiming at future growth and will move to find strong partners and expand their network around the world,” said Okubo, who had in the past, visited various Malaysian automotive and parts and components makers.

Against this backdrop, he advised Malaysian suppliers to approach Japanese car makers and show them what they had to offer.

The Japan Automobile Manufac-turers Association (Jama) said new vehicle sales in April plunged a whopping 47.3%, from a year earlier, due to production disruptions caused by parts shortage following the March crisis.

This is the second consecutive month of steep decline in vehicle sales, after sales which fell 35.1% in March, it said.

“Sales of Toyota cars recorded the worst drop, declining 68.7%, while Honda shrunk by 48% and Nissan by 37.2%,” the association said, adding that production was not expected to return to pre-earthquake levels until late this year and would not be able to meet customers' demand for on-time delivery.

It said, by mid-April, all factories resumed operations, however, production at assembly lines were only running at 50% to 70% capacity.

At end-March, Toyota said it was facing difficulty in sourcing approximately 500 automotive parts like engine control units, brake-related parts and steel sheets but the situation improved a month later with only 30 parts unable to be sourced.

The Tohoku region the centre of automotive precision dies and parts and a number of manufacturers encountered total wipe-out of machines, stocks and even workers and factory buildings.

To make matters worse, in early May, Japanese Prime Minister Naoto Kan requested the Chubu Electric Power Co to temporarily shut down the Hamaoka plant in the Shizuoka Prefecture, which sits on the Pacific coast, in a region seismologists had long warned was due for a large earthquake.

The nuclear complex sits on a fault line and is thought to be at great risk of being hit by a major earthquake.

The plant operator, Chubu Electric Co, halted the plant operations on March 15, anticipating the closure for at least two years.

Industries fear that this could badly affect the automotive industy in the Chubu or Tokai region, where major assembly plants of manufacturers like Toyota, Honda and Suzuki are concentrated.

Malaysian Trade Commissioner in Tokyo Yuslinawati Mohd Yusof said the impact of the aftermath of the earthquake on Malaysia's trade with Japan could be seen in various industries, especially in Japan's main industries, particularly the automotive, iron and steel as well as electrical and electronics industries. Bernama

Tadashi Mizushima, representative director of PNB Asset Management (Japan) Co Ltd, said many Japanese companies had begun to relocate their production base to safer places outside Japan.

He said he would recommended Malaysia as an ideal location to relocate but many Japanese companies, especially the smaller ones, were not familiar with Malaysia's manufacturing capabilities.

As such, he said, Malaysian agencies, entrusted with the task of increasing Malaysia's trade and investment with other countries, should hold many exhibitons or trade seminars in Japan. Bernama

Yuslinawati, nevertheless, called on Malaysian suppliers keen on trading with their Japanese counterparts to showcase that the quality of their products are even better than those originating from the United States or Europe.“The testimonials on their products must be well founded and backed by real data,” she said, adding that Malaysian producers would have difficulty competing in terms of pricing.

Malaysian products were more expensive than those produced in China or Taiwan, she said.

Besides, Malaysian suppliers would also have to be very patient and keep in constant touch with their potential clients in Japan to show that they are serious.“Once they (buyers in Japan) decide to buy from us, they would become loyal customers,” she said.

BERNAMA

AHM VMD 08/06/2011 11-00ST

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Thursday June 9, 2011

Japanese quake offers opportunities for M'sian car parts makers