Worldwide auto production could drop 30% due to quake in Japan
25 March 2011
The Detroit News reports that research firm IHS Automotive thinks that global auto production could drop by 30%, and nearly every major automaker will be affected.
The key to that dire prediction will be the speed with which Japanese suppliers can get back to making parts for the industry. IHS Vice President Michael Robinet reportedly told DetNews that if suppliers aren't online within six weeks, global vehicle production could drop by 100,000 units per day. With average total production sitting at 280,000 to 300,000 units per day, 100,000 represents about 30% of all vehicles built. Robinet adds that if parts don't start coming online quickly, automakers will begin feeling the pinch by mid-April.
IHS points to electronics and transmission components as the most likely to run dry. And that 30% figure could rise 40% if automakers can't get replacement parts within eight weeks.
Sobering statistics, indeed. We're thinking automakers are hoping Japan can rebuild factories as quickly (and miraculously) as it can rebuild highways.