Japan Effects Estimated to be felt for Next Year
Everyone knows that the earthquake and the tsunami that has hit Japan is one that is crippling the auto industry. One look at pictures of the mangled cars that were sitting in port for shipment gives the viewer a good idea of just how much damage has been suffered in the area. However, though the automakers and part suppliers of Japan that seem to be affected are giving a hopeful date of time in when they will be back to normal, most analysts and professionals are pointing to the fact that this is just wishful thinking and that they would not be surprised if this devastation did not affect the auto market for up to a year after the earthquake and tsunami occurred.
Many in the United States auto market are predicting that the effects are going to carry on for quite some time for those that manufacturing plants located in the US, for both domestic and foreign automakers. Of course the effects are already being felt by many automakers in the US as they are having temporary shut downs as they are missing parts that they usually get from plants in Japan, while other manufacturing plants are going to an amended schedule that is keeping workers at work for a few hours instead of having them being basically laid off.
The shock factor that this is causing is outrageous. Most companies when the quake and tsunami did hit the area did not think anything about the consequences to them. They were under the impressions that the US could go on and make their cars and trucks. Though, as most automakers are finding out not having the paint that they need or the small little component in the engine is throwing off their entire process.
Supplies for automakers are dwindling fast, and after April, if Japan is still unable to produce the parts that are needed, who knows where the auto market will be after that.
Leave a Reply