Toyota and Honda Production Stalled
By Jim Sharifi
Mar 23, 2011
Automakers Toyota and Honda are continuing to struggle with supply issues after the earthquake and tsunami, which have caused them to stop production in Japan until at least March 27th. “Auto analysts say that ‘significant challenges’ are emerging in the automotive supply chain and the full impact of the disaster on the global auto industry may not be known for several weeks,” writes Edmunds. “The shutdowns and supply-chain problems could eventually affect the export of Japanese vehicles to the U.S., including the Toyota Prius and Honda Fit.”
Still, it is possible that not all of Honda’s products will likely be affected. “Despite challenges in Japan, Honda says that North American operations are continuing on normal schedules, with ‘no impact,’” says Left Lane News. “On the whole, just over 80 percent of Honda and Acura vehicles sold in the U.S. are produced in the region, meaning that overall sales interruptions will be somewhat limited pending unforeseen parts shortages in the future – although Honda says that most of its parts do come from within North America.”
Overall that’s good news for shoppers, since limited production usually leads to higher prices, but if some parts are in short supply, manufacturers may have difficulty continuing production. “Automakers are scrambling to find alternative suppliers to replace those from plants damaged by the 9.0-magnitude earthquake,” reports the Detroit News. “But some parts, such as electronic components, as less interchangeable than others.”
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