/ Industry, News, Sticky news / Japan crisis hits the entire automotive industry

Japan crisis hits the entire automotive industry

Linked In Share
Japan crisis hits the entire automotive industry

Parts shortages caused by Japan’s enormous earthquake may reduce global automobile production by up to 40 per cent, research firm IHS Automotive said Thursday.

That would be an enormous cut, equivalent to production levels at the depth of the credit crisis and recession in late 2008 and early 2009.

Given the wide use of Japanese-manufactured parts in a large portion of the vehicles produced worldwide, this disaster has rocked the automotive sector to its core, and delays associated with the devastation just keep piling up.

Prior to the global economic collapse, the sector already had crashed and automakers were scrambling to recover from significant problems that had plagued the sector for years.

According to the same study, a drop in output of up to 100,000 vehicles per day was possible if major supply disruptions out of Japan persist for up to eight weeks after the March 11 earthquake. The analyst also detailed substantial production losses in North America and Europe, while in India and South-east Asia the close links of Toyota, Honda and Nissan plants with Japanese supply would “likely compromise volume by late March”.
Citigroup warned investors this week that a genuine recovery in automobile production will likely be pushed back to at least the fall of this year.

The Wall Street Journal reported Wednesday that Toyota Motor TM has told its North American employees that North American production will have some shutdowns, but the timing, extent, and models affected are not known.

Also, General Motors Co temporarily suspended some production at its Buffalo, New York engine plant due to a shortage of parts from Japan. The parts are the same ones causing General Motors to lay off 880 hourly workers at Shreveport’s plant.

Fors Motor Co said that the company hasn’t had any disruptions yet, but the automaker told dealers to stop taking orders for vehicles painted in tuxedo black and will limit output of automobiles in three red shades because of a shortage of a necessary pigment.
In the meantime, Volkswagen AG, PSA Peugeot Citroen and other European automakers may be forced to halt production in coming weeks as component suppliers in earthquake-ravaged Japan struggle to restart factories. VW, Europe’s largest carmaker, already dropped some shifts at the main plant in Wolfsburg in January due to parts shortages.

With earnings certain to take a hit and Japanese transport sector stocks slumping 11 percent since the disaster, automakers are reluctant to forecast how long the stoppages could last, saying only that a near-term solution is elusive.

by Mircea Serafim (my Google+) - Friday, March 25th, 2011 - filed under Industry, News, Sticky news. Image credit: .
Linked In Share
Related Articles
global auto industry impact auto industry japan auto industry japan earthquake


Discuss: Japan crisis hits the entire automotive industry

4 Responses to “Japan crisis hits the entire automotive industry”

  1. [...] output may fall 30 percent due to quake: IHSReutersThe Detroit News -Houston Chronicle -INAUTONEWSall 99 news articles » Posts Related to Shortages could spur auto layoffs in Indiana – [...]

  2. [...] output may fall 30 percent due to quake: IHSReutersThe Detroit News -Houston Chronicle -INAUTONEWSall 99 news [...]

  3. [...] Read More… This entry was posted in Uncategorized. Bookmark the permalink. ← Thresher Uses Metal Matrix Composites to Purse Sales Opportunities in the … – Azom.com LikeBe the first to like this post. [...]

  4. [...] parts scarcities and increasing supply chain disruptions; higher car prices; and a possible 40-percent drop in global auto [...]

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Fernandes hints at Caterham exit
Fernandes hints at Caterham exitJun.27 (GMM/Inautonews.com) Just before closing down his high-profile Twitter account on Friday, Malaysian entrepreneur Tony ...
Exclusive live photos: 2014 Goodwood Festival of Speed
Exclusive live photos: 2014 Goodwood Festival of SpeedTaking place this year between June 26 and 29, the iconic motorsports event is already on its merry rumbling way on the deep, ...
[VIDEO] Audi R8 Spyder – huge crash caught on camera
[VIDEO] Audi R8 Spyder – huge crash caught on cameraA huge crash involving an Audi R8 Spyder has been caught on camera, a few years ago, but the footage was just made public. Back ...
[VIDEO] Lexus LFA + GoPro camera on the Top Gear test track
[VIDEO] Lexus LFA + GoPro camera on the Top Gear test trackA blue Lexus LFA has been recently taken to the Top Gear test track where it has received a GoPro camera attached to its rear ...
Are you the Ferrari LaFerrari FXX?
Are you the Ferrari LaFerrari FXX?A leaked image showing a racing modified Ferrari LaFerrari is making us believe that this is the racing spec version of the ...
[VIDEO] Official – Meet the Aston Martin DP-100 Vision Gran Turismo
[VIDEO] Official – Meet the Aston Martin DP-100 Vision Gran TurismoAston Martin has officially pulled the wraps off the new DP-100 Vision Gran Turismo during the 2014 Goodwood Festival of ...
McLaren 650S Spider gets flipped over by company’s employee
McLaren 650S Spider gets flipped over by company’s employeeA McLaren employee has crashed this brand new 650S Spider while he was driving back to the factory. The second recorded incident ...
[VIDEO] BMW X4 gets new promo
[VIDEO] BMW X4 gets new promoThe German based automaker BMW has released a new promotional video with the recently unveiled X4, which is showing the model in ...
Ferrari Enzo gets crashed by mechanic
Ferrari Enzo gets crashed by mechanicA mechanic has managed to crash a customer’s Ferrari Enzo while attempting to enter the freeway in Stamford, CT. The newest ...
Recall roundup: 2014 Ford F-150
Recall roundup: 2014 Ford F-150Ford has issued a new recall for the 2014 F-150 because of a problem with the EPAS which could result in a loss of power steering ...
[VIDEO] BMW 2-Series earns the Top Safety Pick+
[VIDEO] BMW 2-Series earns the Top Safety Pick+The IIHS has just rated the new BMW 2-Series Coupe with a Top Safety Pick+ safety certificate after being crash tested in the ...
[VIDEO] Koenigsegg One:1 gets driven at Goodwood
[VIDEO] Koenigsegg One:1 gets driven at GoodwoodThe Koenigsegg One:1 is the star of this newest driving video where, for the first time, a guy outside the company gets to take ...
[VIDEO] See a Lamborghini Huracan hit 329 km/h on the Autobahn
[VIDEO] See a Lamborghini Huracan hit 329 km/h on the AutobahnA brand new Lamborghini Huracan video is showing the recently unveiled Italian supercar doing an impressive 329 km/h on the ...
Mercedes-Benz CLA45 AMG Shooting Brake rendered
Mercedes-Benz CLA45 AMG Shooting Brake renderedTwo new renderings with the upcoming Mercedes-Benz CLA45 AMG Shooting Brake have recently hit the web and they will provide us ...
US: Airbag lawsuit led to GM’s Cruze recall
US: Airbag lawsuit led to GM’s Cruze recallGeneral Motors seemed to have enough safety problems of their own, but the latest recall showed that the other huge safety crisis ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

1914 Mercedes Grand Prix Goodwood 2014
Aston Martin DP-100 Vision Gran Turismo 1
mclaren 650s spider crash employee factory 1
Mercedes-Benz CLA45 AMG Shooting Brake 1
peugeot 208 gti 30th anniversary 1
2015 Ram ProMaster 1
Mercedes-Benz SLK gets updated by Wald International 1
One-off Ferrari SP America 1
2015 Ford Focus ST 1
Spy-Shots of Cars
Spy-Shots of Cars
Spy-Shots of Cars

More automotive from inautonews
Taking place this year between June 26 and 29, the iconic motorsports event is already on its merry rumbling way on the deep, West Sussex, England located Goodwood estate. And just for you, we already have a huge batch of on location, live photos. The fondly abbreviated FoS is typically held in a ...
read more
Inautonews Editors Section
F1: 2014 Austrian GP review
F1: 2014 Austrian GP reviewNico Rosberg's victory was a cold shower for many, despite the fact that Mercedes needed to work harder than at any other race this year. Some fans ...
Car investment – which are the next classics?
Car investment – which are the next classics?Some prefer the stock exchange, others buy gold and some invest in properties, but there is a small group of people who prefer to try their luck with ...
Where brand new cars go to die
Where brand new cars go to dieHundreds of millions of brand new cars are left to rust in huge parking lots all over the globe after no one wants to buy them. The 2014 world ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: 2014 Ford F-150Ford has issued a new recall for the 2014 F-150 because of a problem with the EPAS which could ... [VIDEO] BMW 2-Series earns the Top Safety Pick+The IIHS has just rated the new BMW 2-Series Coupe with a Top Safety Pick+ safety certificate after ...
Safety Section