Home / Auto News / News article: Japanese Earthquake Could Cause 30 Percent Reduction In Global Car Production - AutoGuide.com News
 |  Mar 25 2011, 2:05 PM

The latest hiccup deriving from Japan’s earthquake may cause global automotive production to fall by as much as 30 percent, as parts suppliers remain crippled by the quake and subsequent tsunami that devastated Japan.

“We could lose up to 5 million vehicles in a worst-case scenario,” said Michael Robinet of IHS, in an interview with Bloomberg. “This will affect income for the entire year if this continues for an extended period of time.” Robinet said that global production levels are currently off by 13 percent, and a projected disruption of 12 weeks could cause that number to more than double. Companies are currently searching for alternative parts sources, but analysts have highlighted the third week of April as a critical point at which production could drop dramatically.

Currently, Honda and Toyota have extended their plant shut-downs, while domestic automakers like GM have closed plants across the globe due to a shortage of parts.

[Source: Bloomberg]

  • mike saunders

    Waht is wrong with North American industry? Get busy and make the parts here..it’s not rocket science, it requires organizational skill and engineering know how and money. Get at it!

  • molly

    i feel so sorry for them