With more than one week having passed since Japan’s devastating earthquake and tsunami the country’s carmakers and technology firms have been struggling to resume production.
In addition, a lack of parts from their factories is causing concerns about the supply chain to plants worldwide. Renault, General Motors and Samsung have already had to reduce production due to potential parts shortages.
Even those companies not been directly effected by the disaster are having trouble with logistics and shipping. Apple’s iPad tablet computer is assembled in China, but uses memory chips, batteries and screens that are made in Japan by hard-hit firms like Toshiba.
Meanwhile there was a much-needed boost to Japan’s battered businesses from billionaire investor Warren Buffett.
Speaking during a visit to a South Korean factory run by a company that is owned by one of his funds, Buffet said he would not be selling Japanese shares right now.
He told reporters: “Frequently something out of the blue like this, an extraordinary event, really creates a buying opportunity. I’ve seen that happen in the United States, I’ve seen that happen around the world, and I don’t think Japan will be an exception.”
He added: “It will take some time to rebuild. But it will not change the economic future of Japan.”