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NA auto plants bracing for parts shortages following earthquake



NA auto plants bracing for parts shortages following earthquake
By Drew Johnson
Tuesday, Mar 15th, 2011 @ 11:26 am
 
Japan's recent 8.9-magnitude earthquake forced many of the country's automaker to suspend production for several days, and it looks as though the ripple effect could affect North American car production.

North American production has yet to be impacted by the recent events in Japan, but several automakers are now bracing for possible parts shortages. Most Japanese-owned automakers operating plants in North America source at least some of their supplies from Japan, and even Dearborn-based Ford could experience some supply issues due to the quake.

Toyota has already suspended overtime production at its North American plants to conserve parts, with regular production likely to see some disruption in the coming days. Toyota imports about 20 percent of its supplies from Japan.

Subaru is in a similar situation, with the company's Indian plant relying exclusively on Japanese suppliers for its transmissions and six-cylinder engines.

"We just don't know yet what impact we will see," Tom Easterday, executive vice president of Subaru of Indiana Automotive Inc., told Automotive News. "Right now, it's production as usual. But it takes about a week for the parts flow to reach us from Japan. So it will be next week before we see any effect."

Honda is in a better position than its cross-country rivals as it relies on U.S. and Canadian suppliers for most of its North American vehicles. However, the Fit, CR-Z, Civic Hybrid and Insight are all made in Japan, so supplies of those vehicles could be squeezed in the coming weeks.

General Motors and Chrysler have not lost any production due to the earthquake, but Ford could see some parts shortages. Ford relies on Japan-based Sanyo for the batteries used in its hybrid vehicles.

References
1.'In North America...' view