• Mar 24, 2011
You've likely seen plenty of news lately about how Japanese automakers have been affected by the March 11 earthquake in Japan, but what about the rest of the industry? The Detroit News reports that research firm IHS Automotive thinks that global auto production could drop by 30 percent, and nearly every major automaker will be affected.

The key to that dire prediction will be the speed with which Japanese suppliers can get back to making parts for the industry. IHS Vice President Michael Robinet reportedly told DetNews that if suppliers aren't online within six weeks, global vehicle production could drop by 100,000 units per day. With average total production sitting at 280,000 to 300,000 units per day, 100,000 represents about 30 percent of all vehicles built. Robinet adds that if parts don't start coming online quickly, automakers will begin feeling the pinch by mid-April.

IHS points to electronics and transmission components as the most likely to run dry. And that 30-percent figure could morph into 40 percent if automakers can't get replacement parts within eight weeks.

Sobering statistics, indeed. We're thinking automakers are hoping Japan can rebuild factories as quickly (and miraculously) as it can rebuild highways.

[Source: The Detroit News]


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  • 13 Comments
      • 3 Years Ago
      This what happens when you are a manufacturing powerhouse.

      Its a shame that this disaster has put a damper on their output, but the Japanese people should be proud of the fact that soooo much of the world's industrial production is dependent on them. They understand that manufacturing is a vital part of any economy and haven't looked to outsource all their production to other countries just to save a buck or three.
        • 3 Years Ago
        lol...you do understand that other countries like the US have 'outsourced' their manufacturing TO Japan. And if Japan actually 'outsourced' that production, they would just be sending it back where he belonged in the first place.
        • 3 Years Ago
        @ bloggin

        How does what you just wrote contradict what I posted??

        They were (and still are) smart enough to have kept production of products vitally important to their economy in-house. What do we do? We look for the lowest bidder anywhere in the world - China being the latest favorite son - just so some company can save a couple of bucks and put Americans out of work.

        Japan looks-out for what's most important to the Japanese people. We look-out for what's only important to billion dollar conglomerates.
      • 3 Years Ago
      One long term upside, if you are anti nuclear power (I'm sure I'm not the only recent convert), there is this feeling that you can't fight the wealthy and powerful pro-nuclear forces. But this might get other large industries concerned about potential fiscal consequences of a plant mis-hap. Of course it would help if we actually built things over here.
        • 3 Years Ago
        How exactly do you propose to generate electricity then? Fossil fuels won't last forever, and the pollution they cause shorten the lives of far more people than nuclear power plants. Renewable energy has killed far more people than nuclear power plants - the Banqiao dam collapse by itself killed 26,000 people in the initial flooding, with a 145,000 more dying in the following famine & epidemics.

        Even rooftop solar power kills more people per amount of electricity created than nuclear power plants - people occasionally fall off roofs and die while installing and maintaining solar panels. Ditto for wind power.

        If anything, this disaster should inspire confidence in nuclear power; a decades old nuclear plant gets hit with a massive earthquake & a following tsunami, and no one is killed by the plant malfuctions, and what radiation is released by the plant is small enough that anyone will have a hard time proving that it will cause any specific amount of harm.
      • 3 Years Ago
      "the just in time model is great for products"

      'what happens if anything unusual occurs'

      "look over there, something shiny"

      r
      • 3 Years Ago
      but let's keep sending them money...
      • 3 Years Ago
      Hopefully U.S. companies will move manufacturing of parts back to the U.S. Japan is not a low-wage country anymore so I don't see why the parts that are causing a supply-chain nightmare cannot be manufactured here at home. Now if we would only have a better industrial policy such as less regulation for manufacturers and cutting the corporate tax from 35% to say 20% perhaps our American ingenuity will lead to a renaissance in manufacturing back in the U.S. with the corresponding jobs.
      • 3 Years Ago
      Wall street takes common sense and education right out of American business.
      Thats why the Japanese have it as does China.
      Just like one young and one old bull sitting on top of a hill over looking a valley of cows.
      The young bull says lets run down there and nail us one of them cows.
      The old bull says lets walk down and nail them all.
      America being the young bull.
      • 3 Years Ago
      This was a big wake up call for the auto industry. Allowing one country the ability to impact your production around the world is a very bad thing.

      It looks like the US is FINALLY about to get back into the electronics manufacturing business.

      And by the way, there is nothing 'miraculous' about repaving 2 lanes, 500ft of asphalt in 6 days.
      • 3 Years Ago
      Whoa!! The project 30-40% will really change somethings in the near by car industry. Look for a lot more products from the Mexico/Canada/US by this summer probably though parts will be hard to come by. Prayers are sent out to the Japenese that they may recover from this disaster.
        • 3 Years Ago
        doesnt toyota have a rather new plant that goes used here in the states, i may be wrong but i think it was initially built for the current gen prius
      • 3 Years Ago
      Correct me if I'm wrong, but I am pretty sure I have read somewhere recently that labor costs are higher in Japan than the U.S.
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