Japan Earthquake Pressures Supply Chains

MAR 16 2022·Updated DEC 22 2022

Story

Image credit: Reuters [via CNBC]

The Facts

On Wed, a 7.4 magnitude earthquake struck just off the coast of Japan, killing four and injuring another 150 in Soma, Fukushima.
Independent
It struck just days after the 11th anniversary of a devastating earthquake that killed over 16,000 people and triggered the Fukushima nuclear disaster. Last week's quake caused a power outage at the facility but there was no danger.
Fortune
The earthquake has disrupted supply chains. Toyota announced Fri that it will suspend operations at more than half its plants across Japan due to parts shortages. Tokyo-based Renesas, which supplies semiconductor chips to the auto industry, anticipates disruption lasting through mid-next week.
CNBC
On Friday, Subaru also suspended production through early next week and Honda is similarly assessing.
Nikkei Asia
Toyota has faced supply chain disruption due to the pandemic, "Freedom Convoy" protests in Canada, as well as a recent cyber attack.
CNN

Sources Split

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CENTER

RIGHT

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CRIT

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The Spin

Narrative A

The earthquake is yet another supply chain fiasco for Toyota and the once-predictable auto industry. Whether it's Ukraine, the pandemic or disasters like this, automakers don't know what's coming month-to-month. Look for Toyota and others to curb production as a result.

wsj

Narrative B

Japan is hard at work with other nations to heal the Asia-Pacific's supply chain woes. It's vital to diversify investment and share tech to minimize disruptions, and national governments can help pave the way.

The Mandarin

Narrative C

It's time for global supply chains to reinvent themselves. The current hyper-efficient "just in time" model doesn't work well in our disruptive world. Being more environmentally friendly, relying on local production, and increasing disaster resilience are all options to build a better supply chain future.