Japanese Disaster Hits Toyota Badly

Mar 28 2011

The ripple effect of the recent earthquake and subsequent tsunami in Japan is slowly being felt by manufacturers and auto loan buyers all over world.  Many factories use Japanese firms as subcontractors, and large numbers of these firms are still closed for business.

 

In a development that will affect many auto loan consumers, Toyota has informed workers at their U.S. car plants that they will have to work reduced hours and might even be asked to stay at home.  The reason for this is the supply chain disruptions caused by the disaster in Japan.

 

A shortage of parts imported from Japan has prompted Toyota U.S. to drastically scale down production at its pick-up plant in San Antonio, Texas.  Other Toyota plants across the U.S. have also been warned that parts shortages could drastically influence their ability to keep working at full capacity.

 

The severity of the situation was reiterated by HIS Automotive, a company that does research in the motor industry.  They issued a warning yesterday that car production worldwide could drop by as much as 30% if Japanese factories were not able to resume production by the end of April this year.

 

In a clear indication that ordinary auto loan buyers might soon personally feel the pinch of the Japanese disaster, market research companies have reported that Toyota dealers are scrapping any discounts.  This has already led to a price increase of $2 000 (£1,240) for a car such as the Toyota Prius.

 

Other companies are also affected.  General Motors has, for example, temporarily halted production at their pick-up plant in Louisiana.

 

Author: Louise Hutchinson

More from Financial and Loan News

---

---

---

---

---

---

---

---

---

---

---