Japans Auto Industry problems worsen

Submitted: Tuesday, Mar 29, 2011 at 16:15
ThreadID: 85301 Views:1989 Replies:2 FollowUps:3
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Rather than starting to recover from the damage and blackouts resulting from the earthquake and tsunami, the assembling of cars and manufacture of parts is predicted to get worse.

See Mainichi Daily News http://mdn.mainichi.jp/mdnnews/business/news/20110328p2g00m0bu022000c.html

Everything from computer chips to paint pigments are running out because of water, power and transport problems.

Outside Japan, the impact will be felt from Japan onwards, because supplies being unloaded now were loaded in Japan before the quake.

""This is the biggest impact ever in the history of the automobile industry," said Koji Endo, managing director at Advanced Research Japan in Tokyo"

For many decades the industry has worked on just-in-time delivery of parts, but this is a disadvantage when when suppliers have problems, because there is no reserve stock.
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Reply By: Member - Duncan W (WA) - Tuesday, Mar 29, 2011 at 16:33

Tuesday, Mar 29, 2011 at 16:33
Was talking to my wife about this last weekend. I reckon th eprice of new vehicles that are now stockpiled in Aus will sky rocket in price and 2nd hand vehicles will follow suit.

Supply and demand has that effect unfortunately.
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Follow Up By: cycadcenter - Tuesday, Mar 29, 2011 at 16:39

Tuesday, Mar 29, 2011 at 16:39
In the USA, Toyota, Nissan and Mazda have already stopped some production lines and even GM and Ford will be slowing production as they try and resource some components.


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Reply By: olcoolone - Tuesday, Mar 29, 2011 at 18:03

Tuesday, Mar 29, 2011 at 18:03
Word has it that Toyota alone have lost manufacturing over 170000 vehicles and plants affected make the Rukus, Corrolla, Yaris and Prado.

Spoke to a Toyota salesperson today and they still have no up to date information on short to long term effects.

Even Audi have closed for 4 working days to conserve parts.

We are still waiting to see what impact it will have on our business.

In about 4 weeks the world will start feeling the aftershock when parts start running low.
AnswerID: 449620

Follow Up By: dbish - Tuesday, Mar 29, 2011 at 18:13

Tuesday, Mar 29, 2011 at 18:13
JIT Just In Time is a bean counters concept of efficient business!!!! Now it might be look the cupboard is bare.
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Follow Up By: olcoolone - Tuesday, Mar 29, 2011 at 22:11

Tuesday, Mar 29, 2011 at 22:11
It's all to do with lean manufacturing processes concept.

It's not a bad thing and can be cost saving for the manufacture and customer.
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