How is Natural Disaster Affecting Japanese Motorcycle Manufacturing?

Japan’s corporate culture is famous for 100 year business plans and forward-thinking innovations, so it’s no wonder that the country’s recent earthquake and tsunami have cast a pall of uncertainty over the nation’s motorcycle manufacturing business.

How has natural disaster affected Japan’s big four– Honda, Kawasaki, Suzuki, and Yamaha?

As it stands, Honda’s automotive factory suffered the most serious damage, and the Tochigi factory facilities will be shut down until March 20th, along with several other factories, including the Kumamoto facility where the CBR600, VFR1200F, DN-01 and Super Cub are built. Kawasaki Heavy Industry’s Akashi factory is located 400 miles southwest of the primary disaster area, and “didn’t experience any direct effects from the earthquake,” according to a company statement. Suzuki has stopped production at six plants until at least March 17, and Yamaha has avoided major damage but won’t resume production until around March 23.

While car manufacturers like Toyota have seen tens of thousands of vehicles worth of lost production, most automotive companies run at an average of 61 days of inventory supply. According to Kelley Blue Book, “in the short run, it appears as though there are enough vehicles on dealer lots in the United States to withstand a short-term production cutback,” as cited in a MediaPost article.

The motorcycle industry, however, is more fragile at the moment due to precipitous sales drops in recent years, making it particularly vulnerable due to its non-essential (ie, discretionary) nature. With warm weather signaling greater demand, a reduction in inventory could become more noticeable than in the four-wheeled business. And on a separate note, the MotoGP race at Twin Ring Motegi has been postponed, and Tokyo Motorcycle Show has been canceled.

Honda has donated 1,000 generators to aid with rolling blackouts and offered 300 million yen (around $3.8 million) towards relief and recovery. If you’re a motorcyclist looking to support Japan, I recommend checking out Moto for Japan, an organization which says that, “Whether you’re a rider, a racer, an industry employee, or a fan of any of the Big Four, this is your opportunity to give back to one of the most important nation-contributors of all things riding and racing.”