This presentation was done for an English Course at Pontificia Universidad Catolica Madre y Maestra (PUCMM) in Santiago, Dominican Republic, weeks after the earthquake and tsunami struck Japan in March 2011

1. Japan’s Earthquake
and Tsunami
IMPACT ON AUTO MAKERS

3. "This is a one time shock and overall it will not have a long term impact
on the global economy…”
"According to our estimates, the effect [on the Japanese
GDP] will not be that large…”
The World Bank’s Chief Economist, Justin Yifu Lin, said
on Wednesday that the tsunami in Japan will not
have a long term impact on the world economy…
We are sure the Japanese economy will bounce
back quick.
With reconstruction, Japan can increase its growth
rate.
"We hope the world community will give assistance to
the Japanese government.”

4. Friday's earthquake and tsunami
left parts of Japan's economy
"frozen", but analysts forecast that
it will bounce back later this year.

5. The country's global car
giants are expected to be
amongst the worst
affected.

6. Cars waiting for export
burn after an 8.9
magnitude strong
earthquake on March 12,
2011 in Tokai, Ibaraki,
Japan.

7. In the six months following the Kobe
earthquake of January 1995, shares
of Toyota, Honda and Nissan fell
22%, 35%, and 40% respectively,
according to Tong Yang Securities,
and needed up to 13 months to
recover.

8. Toyota, Honda, Nissan and Subaru (Fuji
Heavy Industries) have stopped operation in
several of their factories after the 8.9
magnitude earthquake. Toyota has closed
down 3, Honda has shut 2, Nissan has closed
4, and Fuji Heavy Industries, the maker of
Subaru cars, has closed 5 factories.

9. Nomura suggested that annual
operating profits at Toyota, Honda and
Nissan would be dented by between 3%
and 8% this year.

10. Firefighters hose down smoldering cars Saturday
following Friday's devastating tsunami in Hitachi,
Ibaraki Prefecture, northeast of Tokyo.

11. Some of the country's leading producers, including
the world's biggest carmaker, Toyota, have closed
all of their plants in the country.

12. According to Automotive News, Toyota dispatched 2
convoys of rescue vehicles -- 6 water tankers, 2-fuel
tankers, and 9 cargo carriers -- to heavily-damaged
northern Japan carrying food, water, and portable
toilets. Toyota wanted to bring relief to an area where
it operates 2 parts plants, as do 2 Toyota subsidiaries.
All 4 facilities had been shut down since the
earthquake on Friday. The mission got some welcome
news. A Toyota spokesman said there were no reports
of deaths or injuries, though the plants themselves
suffered some damage.

14. Toyota Motor Co said it will continue
to halt operations at its 12 main
assembly plants in Japan, extending
the suspension until March 22. The
closure of the factories, since Monday,
will result in lost production of
95,000 vehicles.

15. But it will restart production of spare
parts on Thursday at seven plants
near its base in Toyota City, central
Japan, to be shipped to service
centers for repairs to Toyota
vehicles already on the road. From
March 21, Toyota will also begin
making car parts at the same plant
for assembly factories overseas, the
company said.

17. Honda Motor Co reiterated its
plans to suspend all production in
Japan until at least Sunday.
[ID:L3E7EE109]Honda
manufactured 69,170 cars in
January in Japan, where it made
24 percent of its cars.

18. Both Honda and Mazda announced that they
were suspending production for the rest of the
week. For Honda, it means the loss of 16,600
vehicles. Overall, HIS figures a global
production loss of some 36,700 vehicles a
day. That means more demand for used
Japanese vehicles and hence higher prices.

20. Nissan Motor Co said output has
been stopped at all four of its car
assembly factories in Japan. Nissan
made81,851 cars in January in
Japan, where it manufactured
23percent of its vehicles.

21. "We've stopped production as of
today," said Andy Palmer, Nissan's
head of production, in an interview
with BBC World Business Report in
Tokyo, in line with its rivals.

23. Fuji Heavy Industries Co said all five
of its car and car parts-related
plants for its Subaru-brand vehicles
in Gunma prefecture, north of
Tokyo, will be closed until at least
Sunday.

24. "It's not just our factories, it's also some of
our suppliers. Some of our suppliers are
even in the exclusion zone around the
nuclear plant."

25. Mazda Motor Corp
said they will suspend
production at two
plants in southwestern
Japan until March 20,
but have not decided
on how to proceed
after that.

26. None of the carmakers feel
able to predict
when production will be
resumed.

27. Goldman Sachs said in a report
that rough calculations indicated
the profit impact of stopping
production for one day would be
about 6 billion yen ($74.3 million) for
Toyota and 2billion yen for Honda
and Nissan.

28. In the U.S., Bank of America Merrill Lynch figures that
big, publicly-traded car dealers have the most exposure
to the Japanese catastrophe, because production halts
mean fewer exports of Japanese brands, and thus
fewer sales. AutoNation (AN, Fortune 500), Penske
Automotive Group (PAG, Fortune 500), and Group
One all get more than a third of their sales from
Toyota, Honda, and Nissan. Overall, however, Bank
of America figures the impact will be small --
equivalent to one day of supply disruption over a full
year.