Posts Tagged ‘automobile industry’

Effect of Japan’s Earthquake & Tsunami on America’s Auto Industry

May 19, 2011

It may take some time before the earthquake and tsunami that struck Japan in March 2011 really affects America’s car industry, but when it does, here are some things you can expect to happen.  Since there were several parts suppliers that got wiped out by the earthquake, there will be less inventory at Japanese car showrooms, in turn, reducing inventory in the United States, which is supplied by Japan.  The popular Toyota Prius and other Japanese hybrid cars are already experiencing scarce inventory.

How would the earthquake and tsunami that struck Northern Japan in March 2011 affect the auto industry in the United States?In addition, there could be an increase in the demand for used cars.  Used car prices may rise this summer if the demand increases.  However, this could be good news to those looking to trade their old vehicle for a new car.  Finally, a buying frenzy for American cars may occur.  There was a large recall on Toyota cars recently, putting the Ford Motor Company in the spotlight.  It looks like 2011 may be a good year for Ford, Chevy and Chrysler and other American car makers.

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Taylor P.

How is the Car Industry Being Affected by the Tsunami and Earthquake in Japan?

March 30, 2011

The tsunami and earthquake of March 11, 2011 have had a devastating effect in Japan.  If you look through Japan’s history, they are usually prepared for earthquakes, but this time, they were taken by surprise.  With the earthquake shaking buildings off their foundation and the tsunami waves sweeping away everything in its path, it leaves you wondering: how is the disaster affecting the car industry? Nissan, Subaru, Honda, Mazda, Mitsubishi, Toyota and Suzuki all have their headquarters in Japan, not to mention their manufacturing facilities, as well.

Not only has Japan's agriculture taken a hit, but so has its automobile industry.  Nissan, Subaru, Honda, Mazda, Mitsubishi, Toyota and Suzuki have experienced both an interruption in production as well as a loss in inventory.Most of the major auto factories have been closed due to the circumstances.  This is going to affect sales and production significantly, locally and worldwide.  Many of the plants are unsure as to how long they will need to close down production.  Along with this delay, auto manufacturers must also deal with the massive loss of inventory.  Nissan lost 2,300 of its cars, 1,300 of which were meant to be exported to the United States.  For every day that the facilities are closed, there is a loss of USD$72,000,000.  Let’s hope that Japan has seen the last of these tragic events and that the car industry can start getting back on its feet and move forward.

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Joie Montoya