Prepping for Supply-Chain Interruption

With Japanese manufacturing plants idled ― on the heels of a massive earthquake, tsunami, and nuclear disaster ― it’s only a matter of time before the ripple effect hits the U.S. auto industry.

So far, the slowdown in parts production has yet to disrupt U.S. vehicle production. For now, automakers have enough parts in stock to build cars. But rolling blackouts through much of the country have resulted in limited power use. Also, plants that produce the Toyota Scion xB and xD models are near the brunt of the quake and tsunami damage. Not only that, but the Toyota Yaris and Prius hybrid, along with the Honda Fit and Insight hybrid, are assembled in Japan.

My guess: If the situation doesn’t improve in the next three or four weeks, U.S. dealers will start to feel the pinch of limited supply.