After a brief announcement on March 23rd stating that the natural disasters in Japan may affect North American production, Toyota has announced that it is still “too early to predict” whether plants in Canada and the United States, which build both Toyota and Lexus cars, will face shutdowns due to a shortage of parts from Japanese factories.
Toyota claims that most of their factories on this side of the Pacific use North American sourced parts, and that stocks of Japanese parts are still plentiful. However, the depletion of these stockpiles and the failure to restart production at Japanese part plants could mean shutdowns occurring here. While most of the news surrounding the condition of the Japanese auto industry is speculation, the hypothetical consequences of such a shutdown could be catastrophic.
Economic effects, like a lack of work for plant employees, a dearth of cars for dealers to sell and the associated economic effects of a crippled auto industry could occur at a time when an economic recovery is in a fragile infancy, and a blow of this nature could be very hazardous to our economic health.
[Source: Left Lane News]