Japans Auto Industry problems worsen

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.