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Earthquake impacts auto industry
EARTHQUAKE IMPACTS AUTO INDUSTRY
03/14/2011
The earthquake in Japan, besides being a terrible tragedy, is having a big impact on the automotive industry. Virtually all automotive production in Japan is at a halt, though automakers signaled they could resume making cars before the week is out. If the disruption only lasts a week then the impact will not be that great. However, Japanese suppliers export parts all around the world and that could affect both Japanese and other automakers who rely on those parts. Bloomberg reports that the price of copper, aluminum and nickel fell because of an expected drop-off in demand. Speculators also bid up the stock of Chinese and Korean automakers, in the belief they will be the big beneficiaries of the work stoppage in Japan. But here’s my Autoline insight. Anyone betting against the Japanese is going to end up losing. Sure, there might be a short-term blip. But it will be very short term. Also, you’ve seen the pictures of all those smashed-up cars and trucks. They’re going to have to be replaced, and that will turn into a boom for Japanese car companies.
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Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
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