Potential Japanese Auto Parts Impact On U.S. Production

While several Japanese OEMs are still sorting out what they’ll be doing vis-à-vis the devastation brought on by the earthquake and tsunami*, and while most of them have significant vehicle manufacturing capability in other places in the world like the U.S., according to data and analysis from The Journal of Commerce/PIERS, there could be a significant impact on production by these companies at their U.S. facilities due to disruptions of containerized shipping.

While several Japanese OEMs are still sorting out what they’ll be doing vis-à-vis the devastation brought on by the earthquake and tsunami*, and while most of them have significant vehicle manufacturing capability in other places in the world like the U.S., according to data and analysis from The Journal of Commerce/PIERS, there could be a significant impact on production by these companies at their U.S. facilities due to disruptions of containerized shipping.

s

PR Newswire

According to the firms, the auto industry is the largest U.S. importer of goods shipped via container from Japan. So given factors ranging from impassable roads to electricity shortages, parts manufacturing facilities in Japan are going to be affected for some time to come, which will lead to reduced shipments to the U.S. As Mario Moreno, economist for The Journal of Commerce, points out, exports “will weaken in the months ahead as the closing of several manufacturing plants prompted by electricity shortages, combines with several damaged roads and bridges to hamper production.”

Moreno goes on to note, “U.S. car manufacturers, like Toyota, must meet strict specifications and use Toyota-made auto parts only.” Consequently, there could be an impact on Toyota and others vehicle manufacturers that operate under similar circumstances.

*If you’d like to make a donation to help out those thousands upon thousands of people in Japan, there’s a link at the top of this page that will take you to the International Federation of Red Cross and Red Crescent Societies where you can do so. Or just click here.  Please help.