Jamaican dealers feel Japan tremor

Brian Bonitto, Special Assignment Editor

AS fears of a nuclear fall-out and global aftershocks of Japan's recent massive 9.0 magnitude earthquake and tsunami reverberate throughout major world economies, the ripple effects are now at the doorsteps of several Jamaican businesses.

Two Fridays ago, a magnitude 9.0 earthquake and tsunami crippled northern Japan, claiming nearly 6,000 lives, while more than 9,000 are reported missing.

Lynvalle Hamilton, president of the Jamaica Used Car Dealer Association (JUCDA), said while he is saddened by the loss of lives and damage to property due to the earthquake and tsunami, Mother Nature has also dealt a massive blow to an already ailing used-car dealership sector locally.

"Ninety to ninety-five per cent of used cars sold in Jamaica come from Japan," said Hamilton. "And, a couple of our suppliers saythey'll be delayed in sending shipment of cars from Japan."

"This is another dent to the used-car sector," the president continued.

Hamilton said, in the short-term, smaller local dealers with small inventories would be first to feel the crunch.

"And, if things in Japan are not back up in say one year, the local market will definitely dry up," he said.

Lifeline needed

Hamilton, who has sat in the driver's seat of the JUCDA since July last year, said over the past two years 27 used-car dealers had permanently pulled down there shutters.

"This is the perfect opportunity for the government, if they really care about this sector, to throw us an overdue lifeline," he said.

Hamilton - principal of the Holborn Road-based used-car dealership, Auto Channel - has been consistent in his call for the government to revise its existing import duties on used cars and to facilitate the importation of older vehicles into the island.

"The recent happenings in Japan is a red flag for our sector," he added.

In the meantime, ATL Automotive Limited -Jamaica's new-car importer of Honda vehicles - said despite Japan's devastation, its shipment of vehicles for next month is still on track.

"I have been communicating with Honda [in Japan] and our April shipment of cars is safe and secure," said Chris DaCosta, group general manager at ATL. However, he said beyond that period, there was no guarantee.

"We're bound to be affected like any other business operator who gets supplies from Japan," he said.

DaCosta said five Honda production plants in Japan were temporary closed since the devastation.

The local arm of Toyota Motor Corporation (TMC) - Toyota Jamaica - said its plants in Japan were closed. However, plans were under way to restart production of parts for overseas production on March 21.

"There may be problems down the line because the supply chain has been broken," said John Connell, Toyota Jamaica's managing director in an interview with Automotives. "However, we'll just have to wait and see."

Several efforts to speak with a Fidelity Motors representative, importers of Nissan vehicles in Jamaica, were unsuccessful.

- brian.bonitto@gleanerjm.com