IHS Automotive Insight on Monday said that Japanese automakers in the first two weeks after the earthquake will lose about 65 percent in light vehicle production. That’s about 338, medicine 000 vehicles.
Moreover, a week after a massive earthquake and subsequent tsunami ravaged parts of Japan, the effects of the associated shutdown of automotive manufacturing capacity across the Pacific has hit the US auto industry.
According to Reuters, lost production outside of Japan is so far about 10,000 vehicles, but that number will rise “exponentially” as more plants of suppliers are affected.
GM on Monday began temporarily laying off 59 of the 623 employees working at the Tonawanda EnginePlant, according to the Buffalo News. General Motors European arm, Opel, will stop production next Monday for 24 hours due to the lack of an electronic item from Japan.
Subaru of America said it has suspended overtime at its plant in Lafayette, Indiana. The final Nissan Americas travelers in Japan will return to their home countries tomorrow, Saturday, March 19.
Nissan Americas has suspended all employee travel to Japan until further notice.
Ford and Lincolns hybrids (Escape, Fusions and Lincoln MKt) all use Sanyo battery packs made in Japan.
Renault said that the company will have to reduce production.
Source: IHS Automotive Insight via Reuters