Japanese Auto Plants To Face Parts Shortages

Derek Kreindler
by Derek Kreindler

Japanese auto makers have been scrambling to assess the impact of the recent natural disasters on their supply chains, as North American production facilities face potential harm, as Japanese factories have begun suspending production in the face of a series of catastrophic events.

Toyota has suspended overtime production at their North American facilities, while Subaru announced that some 30 percent of their parts suppliers were affected. Automakers have closed their factories as part of a campaign to ease stress on the nation’s power grid. While many of the Japanese car companies built a significant portion of their vehicles in North America, the Toyota Prius and Honda’s entire hybrid lineup are built in Japan, and these vehicles will be critical for dealers if they wish to have a hedge against rising gas prices. Similarly, Ford procures much of their battery technology from Japan, and supplies could be compromised.

[Source: Automotive News]

Derek Kreindler
Derek Kreindler

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  • Major factors hurting the japanese businesses right now. But they are BIG businesses.... what about Tesla? Do they get parts from Japan? It could cripple them as I'm sure they are a "low-level" buyer.