Prospective automobile buyers may have a hard time finding their
desired models this spring and summer as a direct result of the
natural disasters in Japan.
Most Japanese manufacturing plants are only just now reopening
following the earthquake and tsunami that devastated the nation
March 11. Factories that are producing vehicles and parts are
generally operating at a slashed percentage of normal capacity.
The shortage comes at a bad time for American automotive
dealers, which typically enjoy high sales rates from May through
September.
Hybrid vehicles such as the Toyota Prius and the Honda Insight
will be the hardest to come by, as they are assembled exclusively
in Japanese factories.
“Those are the ones that are hurt the most,” said Doug Thorne,
new car sales manager at Kuni Honda in Centennial.
The hybrid cars, however, only comprise a small percentage of
sales, Thorne said.
Rising gas prices will play another factor in vehicle
availability. Fuel-efficient models will be in high demand as gas
approaches $4 a gallon, though many dealers believe their current
stock will see them through the manufacturing slowdown in
Japan.
“We think we might make it,” said Jason Krawczyk, new car sales
manager at Go Nissan Southwest in Littleton. “We are going to run
low on (Nissan) Versas and Sentras.”
Consumers can expect to pay more for vehicles that are in short
supply.
“But I’m certainly not going to gouge customers because there’s
a shortage,” Thorne said.
The small supply of some vehicles will be the first effect
American consumers notice. A lack of Japanese-made car parts will
follow shortly after.
Local dealerships reported that they weren’t too concerned about
having enough parts to perform routine repairs. Honda, for
instance, utilizes a nationwide network to locate needed materials.
If a part can’t be found in Colorado, it can be shipped in from
elsewhere.
“They do everything they can to make sure the customer can get
their car fixed,” Thorne said.
The dearth of parts will also affect production plants in North
America. Without the needed materials to assemble vehicles,
factories in Canada and the United States won’t be able to meet
their normal quotas.
Toyota announced April 19 it is adjusting the hours of its North
American manufacturing plants throughout May. All factories will
operate at 50 percent capacity on Tuesday, Wednesday and Thursday
until June 3. The company had already suspended plant operations on
Monday and Friday, which will continue.
Additionally, Toyota factories will be closed the week of May
23-27 in Canada and May 30 to June 3 in the U.S.
Other Japanese automotive companies, including Nissan, Honda,
Mazda and Subaru, have taken similar steps in recent weeks to
account for a limited supply of materials. Honda and Mazda stopped
taking orders for U.S. models made in Japan.
Most local dealerships have yet to feel the effects of the
looming shortages, but they are preparing for impact within 30 to
60 days.
“We’re bracing for it a little bit, but Japan’s a resilient
country,” Krawczyk said.
Dealers aren’t sure when the Japanese factories will again be
running at full capacity, but the shortage isn’t anticipated to
last past this fall. Toyota has reported it expects its global
production to be back to normal by November or December. Some
companies are already ramping up their manufacturing in the regions
of Japan least affected by the natural disasters.
“They’re getting back, but no one really knows how long until
they get back to 100 percent,” Thorne said.