The economic repercussions of Japan’s devastating earthquake and tsunami are creating shock waves in the global auto industry. The dual disaster have shuttered many Japanese factories alright, they are also causing worries about the impact on the production shutdowns in North America. While Japan is grappling with the situation created as the after math of the earthquake, auto makers are scrambling to assess the full impact of the twin natural disasters and Japan’s ongoing nuclear crisis.
There are already signs that Japanese auto plant shuttering will interrupt supply chains beyond its borders. It is affecting the auto industry's global supply chain. The auto companies outside Japan keep their fingers crossed and hope that the disruption does not stay long enough to affect the deliveries of the car parts or shipments. Japan’s ravaged northeastern region is a major hub for auto parts suppliers and critical infrastructure. The auto parts suppliers have traditionally ensured the flow of goods to overseas markets earlier before persistent power outages came in. Even though only 7 to 8 per cent of a North-American built car comes from Japan, all it takes is one critical supplier to be out of business and you can’t make vehicles.
There are already signs that Japanese auto plant shuttering will interrupt supply chains beyond its borders. It is affecting the auto industry's global supply chain. The auto companies outside Japan keep their fingers crossed and hope that the disruption does not stay long enough to affect the deliveries of the car parts or shipments. Japan’s ravaged northeastern region is a major hub for auto parts suppliers and critical infrastructure. The auto parts suppliers have traditionally ensured the flow of goods to overseas markets earlier before persistent power outages came in. Even though only 7 to 8 per cent of a North-American built car comes from Japan, all it takes is one critical supplier to be out of business and you can’t make vehicles.
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