Japan Quake Fallout, Ford's Army Bid, Buyers Chase Tech

Episode #1408: Toyota assesses earthquake impacts in Japan, Ford jumps back into military vehicle development, and a new McKinsey study reveals affordability is squeezing buyers while technology—not brand loyalty—is increasingly driving purchase decisions.

Next week! We'll be at the Columbus Auto Dealers Concert for a Cause!

• A powerful 7.1-magnitude earthquake rattled Japan’s Kyushu region Tuesday, putting Toyota and Nissan on alert as both have operations near the affected area. While production is continuing for now, the real question may be what happens deeper in the supply chain.

  • The quake triggered fires, damaged infrastructure, disrupted transportation, and prompted a small tsunami in southern Japan.

  • Toyota and Nissan assembly plants are about 93 miles from the epicenter. Nissan reports no injuries or major damage and plans to continue production while monitoring conditions.

  • Even if assembly plants stay online, supplier disruptions could create parts shortages in the coming days, as Kyushu is home to a dense network of powertrain and component manufacturers.

  • Toyota’s Kyushu plant builds Lexus models for export to 80 countries, while Nissan’s nearby plants produce vehicles including the Infiniti QX80, Armada, Patrol, Kicks e-Power, and Serena.

• Ford is returning to military vehicle development, joining GM and an off-road specialist in the competition to build the Army's next-generation tactical truck.

  • The Army awarded prototype contracts to Ford, GM, and BC Customs as it looks to build about 600 of the new vehicles.

  • Ford will build 3 prototypes based on theSuper Duty that will transport troops while serving as mobile power sources for drones, communications equipment, and other military systems.

  • The bid marks Ford's biggest defense push in decades and reflects the Pentagon's effort to leverage commercial automakers for military production.

  • GM is also competing after field-testing its ISV-Heavy prototype and securing a potential $1 billion contract for 10,000 infantry squad vehicles.

  • Ford said it looks forward to "delivering several incredibly capable vehicle prototypes that demonstrate the value Ford can provide to the Army and soldiers."

• A new McKinsey survey shows that while affordability is squeezing buyers worldwide, advanced tech is proving more valuable than brand loyalty when choosing their next vehicle.

  • Nearly one-third of buyers plan to delay their next purchase, while 45% are considering a less expensive vehicle because of financial pressure.

  • About one in four shoppers would switch brands for better driver-assistance technology, with younger buyers far more willing to leave their favorite brand behind.

  • Premium brands face the biggest challenge, as their traditional advantages in design and prestige are losing ground to software, ADAS, and digital features.

  • The study also found EV owners remain committed to electrification, with nearly 90% planning to replace their current EV with another plug-in vehicle.

0:00 Intro with Paul J Daly and Kyle Mountsier

3:21 Toyota, Nissan Plants Are 93 Miles From Epicenter of Japan Quake

6:12 Ford Pitches Army On New Tactical Truck

9:47 Car Buyers Want Advanced Tech In Their Cars