Tag Archives: Japan auto industry

Auto Shortage Problems Worsen

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Disruption in the auto industry because of the earthquake and tsunami in Japan last month have been minimal so far, but the continued aftershocks and impending nuclear meltdown causing roaming power shortages is starting to take it’s toll. Shortages of vehicles built in Japan are starting to be noticed around the world, and the lack of parts is making it difficult for other auto manufacturers to run their assembly lines. Auto analysts predict that Japans auto industry may not hit it’s full manufacturing potential until late this summer. This uncertainly has suppliers, automakers and dealers scrambling.

Car buyers are already having difficulty finding models they want in certain colors, and auto plant workers are expecting they will soon be told to stay home. The complexity of the auto supply chain shows just how vulnerable the industry can be. With over 3,000 parts going into a single car or truck, one missing part means the vehicle cannot be built. Customers not only notice auto shortages, but rising prices, especially on fuel efficient hybrids as gas prices rise.

IHS Automotive predicts that one-third of daily global automotive production will be cut because of supply chain disruptions. That means about 5 million vehicles worldwide won’t be built, out of the 72 million vehicles planned for production in 2011. In the U.S., some car manufacturers are considering shifting part manufacturing operations to local companies, but stringent safety requirements and exacting high tech specifications will limit a company’s flexibility. For now car executives are allocating certain parts to build the more popular and profitable vehicles.

Part Shortages Slowing Down Auto Production

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As automobile manufacturers and part suppliers continue to experience delays in reopening factories in Japan after last weeks earthquake and tsunami, part shortages are starting to slow automobile production world wide. Toyota, Lexus, Honda, and Mazda have extended shutdowns in most of their Japanese factories, and the ones that have been reopened are not working at full capacity. According to analysts, auto makers will feel the worst of the shortages by early may and as many as five million vehicles will end up not being built because of it. It is estimated that about 13% of the world’s automotive production is out of commission.

The components most affected include semi-conductors, integrated circuits, sensors and LCD displays, but it won’t be long before shortages will also be seen in resins and synthetic rubber, power train parts, specialty materials such as silicon and certain types of glass and metals. General Motors announced that they will be suspending production of the Chevrolet Colorado and GMC Canyon pickup trucks in their Louisiana factory and plants near Buffalo, New York that makes engines for those trucks. Other automobile manufacturers, are expected to suspend building in some of their U.S. factories as parts continue to become more scarce.

Japan Earthquake And Tsunami Halt Auto Production

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Japanese auto manufacturing plants will remain closed today in order to assess the damage from Friday’s earthquake and Tsunami. Being outside the hardest hit areas, the factories are still operational, but rolling power blackouts and damaged infrastructure could prevent automobile shipments from leaving ports for a considerable amount of time. The three major Japanese automobile manufacturers, Toyota, Nissan, and Honda, supply most American consumers through factories in the U.S., but Lexus, Mazda, Suzuki and smaller fuel efficient cars like the Toyota Prius and Yaris, and the Honda Fit are built in Japan. In America, consumers have been turning to these small fuel efficient cars as gas prices increase. Some dealerships in North Palm Beach say that they have already sold out of these efficient cars, and they don’t know if any will be getting to their dealerships anytime soon.