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Posts Tagged ‘auto shortage’

Carpet Company Could Save Auto Industry from Disaster

Stainmaster offering to help offset serious resin shortage.

by on Apr.20, 2012

One of the raw materials used in Stainmaster carpets could save the auto industry from a serious shortage.

Faced with a shortage of a critical resin used for everything from seat fabric to fuel tanks, as well as brake and fuel lines, automakers may turn to an unlikely ally, the Kansas firm best known for its Stainmaster carpets.

Wichita-based Invista, Inc., it turns out, is one of the world’s few manufacturers to have a surplus of a chemical called CDT – a primary ingredient needed to make resin PA-12.  Also known as Nylon-12, it has been in increasingly short supply since a March explosion and fire killed two workers and put a factory in Germany out of action.

That plant, operated by supplier Evonik, is the primary source of both CDT and Nylon-12 for use in the auto industry.  With supplies dwindling, automakers around the world face the prospect that many of their assembly lines could grind to a halt in the coming weeks.

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April Auto Sales Expected to Rise 19%

But mounting shortages of Japanese products meant fewer good deals.

by on May.03, 2011

In increasingly short supply: the 2012 Honda Civic.

When automakers begin releasing their sales numbers later today the industry could be in for some good news, April new car, truck and crossover sales expected to show a 19% overall gain despite concerns about rising gas prices and an uncertain economy.

But for consumers, the April sales held some disappointment, nonetheless, industry analysts say, with prices rising and incentives falling as the March 11 disaster in Japan began to curb the availability of Asian-made products.

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Indeed, some observers warn that April could be the end of the steady stream of improving sales numbers due to those shortages.  Honda, for one, yesterday warned dealers that it will be unable to keep up with demand for the new Honda Civic, while both Honda and Toyota have decided to delay the launches of several important new products in the months ahead.

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Japanese Makers At Risk if Shortages Linger

Inventories could plunge by half.

by on Apr.05, 2011

Will normally loyal import buyers switch if faced with serious shortages of products like the new Honda Civic?

The ongoing crisis in Japanese automotive manufacturing could be the biggest setback brands like Toyota, Honda and Nissan have faced in decades should anticipated product shortages send buyers scurrying to check out competing products.

Dealers could struggle with barely half their normal inventory of Japanese cars, trucks and crossover in the coming months, warns the nation’s largest automotive retailer – while analysts say that rising prices could be an equally influential factor leading to mass defections by normally loyal import buyers.

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Nearly a month after Japan was rocked by a 9.0-magnitude earthquake and subsequent tsunami, a large portion of the island nation’s automotive assembly plants remain out of action or are operating at significantly reduced production schedules.  Though only a few assembly lines were damaged by the disaster, scores of automotive parts plants were impacted.  And compounding the situation, Japan continues to struggle with rolling blackouts in the wake of the crisis at the Fukushima Daiichi nuclear plant touched off by the quake and tsunami.

“Everybody’s in crisis mode,” said Michael Jackson, CEO of AutoNation, the Florida-based retailer that operated 243 dealerships in 15 states.

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