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Automotive industry could lose 5 million vehicles during the 2011 Japan disaster

1627 Views 3 Replies 4 Participants Last post by  all-terrain
That's right, 5 million vehicles will be lost during this major crisis. The situation in Japan is getting worse with melt downs happening at a small rate as I'm writing this with the potential for bigger melt downs in any amount of time. 5 Million vehicles is a big loss and will most likley take on a world wide effect.

If you have been keeping up with the news you will see the disaster is not close to being over but the worst part of it has passed.

With the loss of 5 Million vehicles, what else do you guys think this will effect? Stock Market? Gas Prices? Availability of automotive parts?

Fallout from the Japan earthquake, tsunami and crisis at a crucial nuclear power has caused automakers to lose 320,000 vehicles, and if rolling blackouts continue the global industry could lose as many as 5 million vehicles before supply chains and factories return to normal, a leading expert said today.

"We could potentially lose up to 5 million units and while much of it could be made up over time, it could not be made up in 2011," said Michael Robinet, director of global production forecasting for IHS Automotive. "As we stand today 18% of global auto output is down."

To provide perspective, most forecasters expected global automakers to produce about 74 million cars and light trucks this year.

While all Japanese automakers have idled plants in their home country, the impact is spreading to North America. Toyota has told its workers in the U.S. and Canada to expect days when they will not build vehicles. General Motors has halted assembly of compact pickup trucks in Shreveport, La., and certain engines that power those trucks that GM makes in Tonawanda, N.Y.

Ford and Chrysler say they have adequate parts to keep their U.S., Canadian and Mexican plants running, but Ford eliminated overtime hours last weekend at plants in Dearborn, Kansas City and Avon Lake, Ohio, said Ford spokesman Todd Nissen.

Robinet said the period between April 22 and May 6 will be crucial in determining how significantly production will be reduced.

The most vulnerable parts, many of which are produced in the area near where the 9.0-magnitude earthquake struck most directly on March 11, are microchips, semiconductors, certain rubber and plastic components.

"Honda has 19 suppliers in the radiation zone (surrounding the Fukushima Daiichi nuclear power plant)," Robinet said. Honda said today it is extending the shutdown of its Saitama and Suzuka plants, already idled through the end of this week, until April 3. Motorcycle production will resume next Monday at its Kumamoto plant.

Toyota will resume production of its Prius and Lexus HS 250h and CT 200h hybrids next week at plants in Tsutsumi and Kyushu.

David Andrea, vice president of the Original Equipment Suppliers Association, said disruptions in microcontrollers could affect the availability of things such as electronic control modules that are critical to making engines.

"Many suppliers and the automakers are finding that three or four levels down their supply chain they're not sure how long those suppliers will be out of production," Andrea said.

"In the best case scenario we lose production in the late first quarter and early second, but most of that will be made up in second half of this year."
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Even though, much was lost, the stock hasn't taking too big of a hit yet, even though markets have taken a plunge, but its not too drastic. As for production of cars and such, and other things there has been a spike in price as there should be as the ripple effect happens, as Japan being a huge supplier for many products such has transmissions and paint and other things are on the short fall. Price will rise its simple demand ans supply but luckily, Japan has been able to get on their feet and work as quickly as possible.
At this time i don't think a lot of things will be affected by the Japan earthquake & tsunami if it has, we would already see the most obvious things change and going about my daily activities I never noticed a change in anything yet.

Anyone have a update on whats going on in Japan?
dude where have you been check the news!

Oil prices went up!
Food prices will go up due to the fact Japan or the Fukishima Perfecture, their food can no longer be sold legally!

This will have a huge ripple effect across the market, esp still with rolling blackouts, and the automakers in japan are still taking a hit!

Listen to the news!
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