Impact Of The Japanese Disasters On Importing

[PSI-FED]

First and foremost I wish to extend my condolences to the people of Japan. I don't have an economics or commerce background so I need some answers from some one who may have a better insight into the matter.

The question I have is exactly how much will these incidents affect import cost and import quality. I would imagine that a number of import vehicles would have been damaged but that's just going on presumptions.

Prior to the disasters, we where buying approximately 82-3 Yen for every $AUD, several days after the incidents we dropped to 73 from memory and now we are back up at about 80. I recognise the fact that a lot of Japanese investors are pulling out from overseas markets and backing up their economy, in saying this what will the ultimate result be say in 3 months time?

Edited March 20, 2011 by PSI-FED

[PRIMO]

Hi PSI

to answer a few questions you have i would say the exchange rate has always been a major factor in exporting to Australia so i don't think much has changes as you just need to allow for this as a factor for importing. so yes it does impact the costs to a certain degree, but all leading importers always factor this into account.

As for Quality goes nothing changes any vehicle that have been flood effected get a certain rating usually grade 1 from auctions if the make it that far and really most cars affected will go straight to recycling plants as most of you would have seen the amount of damage to these cars on TV they are completely wrecked. Also the effected communities are not the types of places that you would see many performance vehicles or such as they are fishing villages and or small farming areas. finding a flood effected vehicle in the market for Australia i would assume is fairly well protected and if you are using buyers in japan that you have had long standing relations or know of many that have held high reputations should easily provide the information on any vehicle that has been involved in such floods or tsumami effected areas. also these areas are not normally areas exporters buy from also but this does not mean vehicles from these location do not get exported or moved to large auctions in japan.

another reason you would not see so many tsunami effected vehicles at auction is the superstition that Japanese have with all things used and one of the biggest items is the bad luck passed on by previous vehicles owners. i myself have spent many times at recycling plants in northern Japan buying vehicles for parts i have seen so many things inside cars that would make you think why is that still inside the car ( IE Mobile phones, clothes nice , jackets , brief cases , many CDS , jewelry and other personal effects) these are left inside the cars because if the owners survive the accidents the believe that the bad luck should stay with the cars and just walk away not claiming anything from inside the cars once they are clear. funny as it sounds but true in many cases.

Ultimately at the end of the day yes it does effect us importing for us in some ways but i believe the negativity of this being in a bad way will not factor into exports for Australians in a major way. for those who have had dealings with reputable companies in japan or have someone who is in the know of who is good or not you should continue to use those companies. buying blind off any 1 unknown company in japan has always been a hit and miss and buyer beware.

[JAS-25T]

I've heard reports that SSS Automotive has had their Japanese workshop wiped out.

[Mr Eps]

sorry to plead ignorance but who are SSS automotive?? here out west they are just a shop near my house that sells altezza taillights?

[JAS-25T]

They import parts and half cuts, not complete cars.

[Beer Baron]

SSS automotive one of the oldest and most established import businesses in aus. Joe and Geoff have been importing stuff from japan for a long time (like since the 90s). Joe also has what was one of, if not the first RB30 powered GTR in aus (over 10 years old now). it now has over 200,000kms on it! currently pumping out somewhere around 500kw atw. They both travel to japan frequently and Joe has spent years living there buying cars and parts and shipping them back. They have their own house, and big workshop and yard in japan. I really hope their stuff is ok. Both are great guys and work bloody hard for their money.

http://www.sssautomotive.com.au/

[JAS-25T]

I've heard through a cousin who's heard from Geoff direct that their workshop was wiped out.

there is room for some Chinese Japanese whispers though once it get's through a couple of sets of ears.

[Beer Baron]

bummer. that is sad news. I hope Joe wasn't over there when it happened.

[Mr Eps]

That's Sad news as is anybody affected by it...

I was once asking for some part for a cefiro when I was younger and dumber... someone told me "SSS have heaps of cefiro handcuts right now!!"

So I was like oh sweet!!

So I jumped straight in my car and drove to SSS auto up the street from me....

http://www.sssauto.com.au/index.htm

...not the same shop

[Beer Baron]

yeah not the same guys. SSS in sydney have been supplying bits all over aus since the aus import scene was in it's infancy. as I said Joe imported his R32 GTR back in the 90s and put a 3litre RB26 in it in the 90s too and ran masive tiwn high mount 2835s on it for around 400kw, with 6 speed box, big AP brakes etc and lots of cool touches. I think it had 30,000kms or something on it when he bought it and now has over 200,000. it's a very nice GTR still today.

[Mr Eps]

yes.. it was an awkward moment for all when i walked into the reception area demanding to view their A31 cefiro halfcuts and saying that i was so hapy that someone local had a cefiro halfcut cos it was so hard to find parts for my car...

the owner comes out n he's like

...wtf is a cefiro. you mean a commodore?? we sell tail lights for your commodore...

[leer34]

my panel beater is waiting on parts from nissan japan to send over here so my car can finally be repaired but there are massive delays atm..the parts were ordered a couple of days before the tsunami hit so they hadnt been sent yet. has already been two months since the accident so little bit longer cant hurt compared to the suffering of other eople at the moment.

panel beater was saying that toyota and nissan are both shut down in japan at the moment

hope the news bout SSS turns out to be false, have got parts from there several times, really great guys

[Iron Chef]

I've heard the news about SSS from a separate source too - apparently their Japanese warehouse was in Sendai.

[MattR]

bad news for all concerned over there but any involved all over the world with any industry effected. i am tied up with uranium study and production and hearing all sort of negatives about the situation. regardless of that anyone remember what happen with the dunlop factory in Kobe when they had there problems there. took years for production to get up and running again. About 20% of solar panels that we use here in Aus are made in areas affected and will yet again takes years to catch up.

more important than all this is the loss of life and total loss of families.

[Beer Baron]

yeah I checked about SSS last night. it's true unfortunately. and Geoff was over there at the time. he was lucky to get out when the quake hit but he said the yard is gone.

[PSI-FED]

So will the collapse of the japanese economy make it possible for me to import a BB R34 Vspec grade 4 or over for under 3,500,000yen or am i dreaming??

[Iron Chef]

I highly doubt it.

[gtr fan]

Given japan has bought back /repatriated a lot of its currency is thier currency going to get stronger?

This along with the supply available makes me think things out of Japan are going to be more expensive. Time will tell.

[Iron Chef]

My hypothesis - apart from a few extra water-damaged cars coming through auction, auction prices and the exchange rate will all pretty much stay the same.

[elrodeo666]

Japan currency wont get higher as the Japan Bank has poured billions of yen in to stop this happening.

If they hadnt you would have probably seen the Aussie dollar in the very low 70's if not lower and same for the US dollar against the yen right now.