Japanese Parts Paralysis, Take 2
Now that the effects of the March 11 tsunami are behind the Japanese auto industry, carmakers are pulling out all stops to make up for lost volume. Only to run into new problems: “Shortages of tires and other autoparts are a growing concern,” reports The Nikkei [sub]. The new shortage is tsunami-unrelated. Its reason: Bad old supply and demand.
According to The Nikkei, Bridgestone has notified automakers that the company has more orders for car tires than it has capacity. Bridgestone thinks it will be short 500,000 tires, that’s 100,000 cars missing from the production stats.
Japan Polypropylene has trouble keeping up with demand for resins used for plastic autoparts.
Also short: Workers. Automakers continue having problems finding enough temporary workers, to help out with the great production surge.
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"The new shortage is tsunami-unrelated. Its reason: Bad old supply and demand." Not unless the demand was filled, those lost sales are just that and will never be nmade up. At least not based what product they sell in the US. Other than that it's just more excuses why 60 years olds don't want vanilla styling anymore.
Jeez, really?! Our dealer is just now getting inventory again. Time to find a new industry for me, I guess...oh wait, the malaise hasn't ended yet. :(
And you don't think that Hankook can supply 500,000 tires? Most of this is bogus. They're hiding something, either the lines are maxed out (lack of replacement workers or physical plants) or there's a fundamental Japanese structural problem that gives them a production ceiling. Power perhaps? I can see a Sino/Nipponese joint venture in the offing, soon.