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Would You Wait for a Japanese Car?

Toyota, other makers could be hurt if production delays lead to product shortages.

by on Mar.16, 2011

Honda buyers are among the most likely to wait out a product shortage, says CNW research.

How much do you really want that new sedan?  Would you sit tight for that sports car?  Will you wait several months for that big SUV?

Japan’s continuing crisis has already resulted in the loss of tens of thousands of new cars, trucks and crossovers, whether damaged by Friday’s massive earthquake, the subsequent tsunami, or simply through lost production, most Japanese automakers unsure when they’ll be able to get their assembly operations back up-and-running.

Even in the U.S., the natural disaster’s effects are being felt, Subaru halting production at its Indiana plant, while Toyota cuts all overtime.  And, now, even some Detroit makers could feel the pinch if shortages of Japanese-made parts begin to develop. (Find out more…Click Here.)

Helping Worthy Causes!

“The impact of this has yet to unfold,” Mark Reuss, president of General Motors’ North American operations cautioned today, stressing that the quake’s impact on the Japanese supplier network could be “bigger than anyone knows today.”

One test will come if consumers begin to experience product shortages at the dealer level.  American buyers have traditionally preferred to buy whatever they can find on a dealer lot, rather than placing a custom order that might take weeks, even months, to come through.

So, will buyers who can’t find what they want go somewhere else?

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Some Japanese Car Plants Ready to Reopen

But problems persist and could threaten GM.

by on Mar.16, 2011

Toyota pares back production of models like Camry at North American plants but resumes some Japanese operations tomorrow.

With the lights on the landmark Tokyo Tower darkened due to power shortages across the country, things are anything but back to normal in Japan, but one sign of progress comes from Toyota, which says it will reopen some of its parts plants on Thursday, though the maker will keep assembly lines shuttered until at least the 22nd.

The plants resuming operation tomorrow will supply much-needed parts to vehicles in use in Japan.  Meanwhile, Toyota said, it will resume production, next Monday, of parts needed by its overseas plants.

That’s good news for managers of assembly operations in North America, where the maker late yesterday announced it would trim overtime and Saturday hours because of the threat of possible parts shortages.  Like many so-called “transplants,” Toyota’s U.S. and Canadian assembly lines remain dependent upon many parts and components shipped in from Japan.

“It didn’t make any sense to build vehicles on overtime if we were not sure we would have enough parts,” explained spokesman Javier Moreno.  How long the slowdown will continue remains uncertain.  “We’re not sure how many parts they can send us,” said Moreno.

News and Reviews You Can Use!

Toyota isn’t the only maker worried about the impact on foreign operations.  Subaru has halted production at its Indiana plant.  And even Detroit makers are worried about parts shortages triggered by problems with Japanese suppliers.

Chris Perry, General Motors vice president of marketing, told reporters in Detroit it is possible GM’s production in the U.S. could be hurt. “It’s going to have an effect on all manufacturers,” said Perry adding the impact could extend to GM’s operations in China.

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