Japan crisis could squeeze world auto production

[marjar]

While the immediate focus of Japan is on rescuing the wounded, recovering the dead and caring for survivors, the island nation is slowly coming to grips with the impact of last week’s natural disaster on its largest industry: automotive manufacturing.

The massive earthquake and the devastating tsunami that followed appear to have wrecked or washed out to sea thousands of new cars. The force of the natural disaster also crushed plants and left manufacturers large and small struggling to take stock of the damage.

Auto production is on hold at least temporarily, and it remains to be seen how long it will take to get production up and running again. The impact of the stoppage could be felt for months in Asia and around the world — by automakers, workers, investors and motorists, who could find some of their favorite vehicles in short supply.

www.msnbc.msn.com/id/42087174/ns/business-autos/

[Value Buy]

I guess, I have to make the statement, that this might be good for American car companies in the short term.
Are the Japanese cars that are made here, built with American made parts, or are most parts sourced from Japan?

[Value Buy]

If Japanese cars made in America are built with sourced parts, this could also increase unemployment here in the states, with shutdowns coming from lack of parts.
GM Ford and Chrysler might benefit from any shutdowns.

[marjar]

news.yahoo.com/s/ap/20110315/ap_on_bi_ge/us_japan_earthquake_autos_5

DETROIT – Two Japanese automakers are scaling back production at North American plants as they assess their ability to get parts from Japan after that country's devastating earthquake and tsunami.

Subaru of America said Tuesday it has suspended overtime at its only North American plant in Lafayette, Ind. Toyota Motor Corp. also said it was suspending overtime and Saturday production at its 10 plants in the region.

So far, other Japanese automakers say their North American plants are unaffected. Nissan Motor Co., Honda Motor Co., Mitsubishi Motors and Mazda Motor Corp. all say they have not changed their production plans.

But that could change if lingering damage from the earthquake prevents parts shipments. Mitsubishi, for example, has enough parts on hand or en route to operate its Illinois assembly plant through April 3, spokesman Dan Irwin said.

"The situation is fluid, so we continue to monitor our supply chain and logistics," he said.

In Japan, auto companies have shut down production for the rest of the week as they assess damage to plants, ports and roads.

While Japanese automakers with North American plants use locally-based suppliers for many of their parts, others still come from Japan. The U.S. imported $12 billion worth of auto parts from Japan in 2010, from spark plugs to engines, according to the Original Equipment Suppliers Association.

[Bluerobin]

Yep, this could be a real crisis. I noticed the long lines outside the dealer ships lately.

[marjar]

Japan is a major electronics manufacturer, accounting for 14 per cent of the global production of computers, consumer electronics and communications gear last year, according to research consultancy IHS iSuppli.

Toshiba, which supplies more than a third of the NAND memory chips used worldwide in devices such as Apple's hot-selling iPad, said it was starting the process of restarting a chip factory in Iwate, northern Japan.

Japan's Shin-Etsu , the world's top producer of silicon wafers used to make semiconductors and the plastic PVC, suspended operations at its Shirakawa plant over the weekend.


"The earthquake has reportedly affected around 20 per cent of the Japanese steel production capacity," said Kim Hyun-tae, an analyst at Hyundai Securities in Seoul. "It will disrupt production in Japan, one of the major steel producers exporting 40 per cent of its output. In contrast, steel demand will rise for damage restoration."

[Bluerobin]

marjar, don't worry, China can make those parts.

[marjar]

Better yet, it would be nice if we could.

[handyman2]

Not to worry, there are loads of models left over from the last two years that have not sold yet. Did you notice how long those little cars floated before sinking? Must be part boat.

[mmhmm]

Must be well sealed, eh, handyman. Speaks in their favor, most certainly.

[mmhmm]

Must be well sealed, eh, handyman. Speaks in their favor, most certainly.

[fairlycrazy23]

We could see a hit in beef prices, which would be good for shoppers here.

[Value Buy]

Mar 15, 2011 21:37:14 GMT -5 @marjar said:

news.yahoo.com/s/ap/20110315/ap_on_bi_ge/us_japan_earthquake_autos_5

DETROIT – Two Japanese automakers are scaling back production at North American plants as they assess their ability to get parts from Japan after that country's devastating earthquake and tsunami.

Subaru of America said Tuesday it has suspended overtime at its only North American plant in Lafayette, Ind. Toyota Motor Corp. also said it was suspending overtime and Saturday production at its 10 plants in the region.

So far, other Japanese automakers say their North American plants are unaffected. Nissan Motor Co., Honda Motor Co., Mitsubishi Motors and Mazda Motor Corp. all say they have not changed their production plans.

But that could change if lingering damage from the earthquake prevents parts shipments. Mitsubishi, for example, has enough parts on hand or en route to operate its Illinois assembly plant through April 3, spokesman Dan Irwin said.

"The situation is fluid, so we continue to monitor our supply chain and logistics," he said.

In Japan, auto companies have shut down production for the rest of the week as they assess damage to plants, ports and roads.

While Japanese automakers with North American plants use locally-based suppliers for many of their parts, others still come from Japan. The U.S. imported $12 billion worth of auto parts from Japan in 2010, from spark plugs to engines, according to the Original Equipment Suppliers Association.

In our local paper this morning, the AP reported Subaru suspended production at it's Lafayette Indiana plant, not just overtime......

[BeenThere...DoneThat...]

...went to a Toyota dealership this week... I didn't have the heart to ask the guy what he thought about expected inventory or service supplies for their warranty... prices weren't bad... but isn't the whole "sticking pedal" discount still in effect?