Post-quake Effects on UD Trucks Manufacturing Operations in Japan

On March 11, 2011, a powerful earthquake of 8.9 magnitude had struck Japan, followed by a devastating tsunami and continuous aftershocks.  The earthquake and the tsunami led to thousands of people being dead or missing, disrupted transportation and communication networks, and triggered power outages across north-east Japan.  Major auto manufacturers in the country, including UD Trucks, which is owned by Volvo, the Swedish truck manufacturer, were also drastically affected.

Truck Tossed by Earthquake at Sendai Port, Japan

For the last few days, there have been increasing concerns about the badly affected nuclear reactors in northeastern Japan.  As a result, the Japanese truck manufacturer – UD Trucks have decided to stop production at all of its facilities and offices till Monday, March 21.

UD Trucks’ main Ageo facility located in the Saitama prefecture, just 200 kms from the affected Fukushima nuclear plant, has been damaged by the recent calamities.  The R&D building has been shut down and will remain closed throughout the week.  So far, the Japanese authorities have not asked for the evacuation of the Ageo area.  But Volvo is carefully monitoring the situation.

UD Trucks has set up a special risk management team in Ageo for assessing the nuclear power plant damage.  The team will collect and then analyze information to enable the UD Trucks management to take necessary safety measures as quickly as possible.

Volvo also announced that UD Trucks will be donating around 100 million yen (about $1.27 million), including goods like trucks, to help support relief and recovery efforts for the people and areas affected by the recent disaster.  Japan represents around 7%-8% of the turnover of the Volvo Group, the world’s second largest truck manufacturer.

At present, Volvo has suspended production and advised all its 9,500 or so employees to stay at home until any further notice.  Though severe damage has been caused to four workshops and dealers in the badly affected Sendai region, all Volvo employees have been accounted for and those at UD Trucks dealers appear to be unharmed.  Staff at the sales office, and those involved with back office operations and parts supply returned to work on Thursday, March 17, with some employees starting recovery activities.  No production work however will resume this week.

The UD Trucks management is concerned that organized power cuts within the Tokyo area might also affect production activities.  Deliveries from UD Trucks’ suppliers being uncertain for the near future, teams from the company will work together with its suppliers to determine their status.  As per the latest press release from UD Trucks,  production at UD Trucks’ facilities in the Tokyo area are likely to resume on a limited scale from March 28, 2011.

Technorati Tags: Japan, UD Trucks, Japanese truck

Tags: ud trucks earthquake japan