 |
The recent earthquake and subsequent tsunami that struck Japan is having a harsh effect on the automotive industry. Concerns abound amongst manufacturers of dealers hoarding spare parts to better provide for the customers they need to serve. Manufacturers such as Toyota are working to avert this by putting a limit on how much and what a dealer is able to order.
The tsunami destroyed and washed large sections of Japan’s economic infrastructure away. That includes plants that were responsible for over 20% of the world’s semiconductor production in addition to small plastic and rubber parts. An automobile is a combination of many different moving parts that must work in relative harmony. Even the loss of one part can drastically affect the vehicle’s performance.
Manufacturers are struggling to get facilities opened and production restored in the aftermath of the disaster. Rolling blackouts and brownouts prevent large scale production from once again getting under way. Extensive water damage of the plants that were not utterly destroyed is still in the process of being repaired. Many manufacturers have cited estimates of mid-summer being the earliest they can get back to meaningful production.
In the meantime, other areas where these parts are produced are stepping up their production to try and fill some of the gap. Several dealers are already exploring other supply routes to ensure another disaster does not have a similar impact on their ability to provide.
A car buyer would do well to keep an eye on prices before deciding to purchase a new vehicle. The lack of parts creates the ideal circumstances for prices to rise due to the principle of supply and demand. Those in immediate need may be able to less expensively meet their goals with the purchase of a used car. That route features its own pitfalls if the automobile happens to require extensive service and maintenance.
More manufacturers are expecting to be following suit behind Toyota to ensure there is some level of fair distribution in several areas. In the meantime, aid flows in and the world watches as Japan strives to get cleaned up with a sense of normalcy restored.
