U.S. automakers are beginning to feel the effects of Japan's earthquake of several weeks ago due to the shortage of new car parts that are normally supplied by Japanese manufacturers.
An article by Peter Valdes-Dapena, senior writer for CNN, describes how far-reaching the earthquake is when U.S. factories are shutting down production for the lack of even a $5 part.
In the next two months Honda, Toyota, Ford, Chrysler and General Motors will all be facing shortages of key parts, mostly electronic items, and either slowing down production or shutting down completely until the supply can resume.
Ford Motor Co. spokesman Todd Nissen described the scramble to find parts a normal routine since shortages occur all the time, but the shortages that will be experienced this time will be out of the ordinary.
Nissen says that there are specialized products that involve patented processes and the only place that can make them are in the Japanese plants that have been shut down.
In order to secure a new supplier for some parts, such as electronic chips, the certifying process can take up to a year.
The shortages are not limited to Japanese and U.S. automakers, and global auto production by non-Japanese could be ultimately reduced by as much as 30%.
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