Sunday, April 3, 2011

Quake could cause large car price increases

There are some tentative signs that the Japanese automotive industry comes slowly back to life after the deadly earthquake and tsunami, which struck the country March 11. But American consumers should brace for the probability that they pay more for cars with Japanese nameplates in the coming months.

Mitsubishi and Nissan expect that at least some of their factories again, although industry officials warn that plans change quickly in the days and weeks ahead, could in operation this week continued uncertainty about factors such as basic communication and transport.

Japanese auto plants remained the most idle 10 days after the disaster, at least in part because of the crisis on the Fukushima Dai-Ichi makes nuclear complex and nationwide shortage has caused it.

The crisis has reached, automotive parts always in short supply across the Pacific with Japanese made. Several automakers, Toyota and Subaru, including have curbed production at their North American 'transplantation' assembly lines, while General Motors assembly plant in Shreveport, La., down for the week due to a lack of Japanese manufactured parts. GM is also production in the factory engine Tonawanda, in nearby Buffalo, containment and release of 59 of 623 workers.

"The impact of this [crisis] has yet to unfold," said Mark Reuss, President of GM's North American operations, adding that the ripple effects have Japanese auto suppliers close - or their delivery disturbed - "could be larger pipelines for everyone today white."

Deutsche Bank automotive analyst Rod pool said it is "still too early to estimate the impact of the supply chain, or how long energy conservation measures (such as the rolling blackouts felt across much of Japan) production could potentially limit."

But a report by IHS global insight makes claims, that all major auto manufacturers by the Japanese disaster and the subsequent lack of parts, probably by be affected are mid - to late April.

"It not a question of, but when," said Michael Robinet, Director of automotive forecast.

The effects of the disaster differently so far automobile manufacturers and suppliers. Nissan and Toyota have a range of facilities based in Northeast Japan, the region most hit by the disaster. On the other hand, said Suzuki's facilities based South of the nation "and not useful direct impact, suffering Kurt Sanger of Deutsche Bank."

But parts shortages and the situation electricity are wild cards, which threaten all Japanese automakers.

Sanger said Nissan has between four to six weeks of the imported parts for its North American plants, but he warned that that Honda trouble could face, how new 2012 launch civic is if at some point in the may re-opened the supply line is not ready.

Honda has delayed some U.S. merchants orders due to delays in the production.

For its part, Toyota has said "Every effort to long-term impact on the Prius availability to minimize makes." But the timing of the crisis is particularly bad for the world's top car manufacturers as it prepares to launch the Prius several additional hybrid models name as part of a new brand in a brand.

With a major engine plant may consider the Commission for a longer period of time, Nissan the possibility of shifting part of the production in a Powertrain plant in the United States it could filed shipping engines back to Japan as soon as home market assembly plants resume functioning.

American driver, which must have an eye on a new Japanese car, truck or crossover to stretch your budget a bit more than expected.

A number of online services that track of automotive pricing report, that Asian manufacturers and their dealers already begin to increase incentives, prices in the wake of the crisis still put an end to areas.

Story: Japan supply problem is spreading to cut output as a company

Shuster, the, said Darren Toyota prices immediately after the earthquake increases.

Japanese automakers and dealers are also eliminate the discounts and other incentives, which were before the Japanese natural disaster, according to Jesse Toprak, Vice President of industry trends and insight in The impact, he warned could "weeks, if not months." Last

Nissan expected, launch a series of component plants on Monday and bring your to at least some assembly lines by mid of week. A high official Nissan car manufacturers said "The situation hour by hour, partly by part tracked."

The disaster at the nuclear power plant in Fukushima complicates an already serious crisis for the automotive industry.

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The loss of the system of six atomic nuclear reactors causes headaches for the Japanese manufacturer of steel producers on silicon chip manufacturers who are faced with the nightmare of rolling blackouts.  Several automakers have reported suffering serious damage to equipment cool briefly during the blackouts in the molten metals.

Now, because the damaged reactors emitted radiation still, is there is growing concern not only about the impact on Japanese water and food, but were also on the country.

"We do not believe, is harmful radiation", Dave Reuter, Vice President of communications for Nissan North America said operations, but "should correspond to radioactive material our cars and trucks, the which will we all necessary precautionary measures take, to ensure that harmful material not in the country brought and to partners of carriage including customers."

The crisis is Japanese car manufacturers in a bad time for American drivers - such as automotive demand usually in the Spring Summit. Although the current crisis proves short-lived, can try the Japanese automaker, take advantage of the situation to push up prices, in the hope that the consequences of the increasingly strong yen.

Strong competitive pressure from United States, Korean and European automakers could force, to rethink this strategy Japan's automakers. But then again, the entire industry can see this as an opportunity to increase the prices, something that was difficult, during the recession, if the most lavish incentives car buyers could not showrooms again.

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