Featured Research

from universities, journals, and other organizations

Earthquake could mean major shortage of some Japanese cars in US

Date:
March 16, 2011
Source:
University of Rhode Island
Summary:
American consumers thinking about buying a car made by Toyota, Nissan or Honda might want to make their decisions quickly. That's because work at Toyota, Nissan, Honda and other auto plants in Japan has been interrupted following the historic earthquake, resulting in a loss of 10,000 vehicles per day for Toyota alone.

American consumers thinking about buying a car made by Toyota, Nissan or Honda might want to make their decisions quickly.

Related Articles


That's because work at Toyota, Nissan, Honda and other auto plants in Japan has been interrupted following the historic earthquake, resulting in a loss of 10,000 vehicles per day for Toyota alone. Douglas N. Hales, associate professor of supply chain management at the University of Rhode Island's College of Business Administration, said such interruptions will slow production of some models in the United States and around the world.

The URI professor is in Le Havre, France doing research at its port until next week. Shortly after the earthquake, he switched his focus to examining the effects of the Japanese earthquake on French businesses.

Hales said that even more critical to the companies' plants in the U.S. would be the loss of some key components that are only made in Japan, which could slow production here.

For the short term, Japanese auto manufacturers have enough inventory in the United States, Hales said, adding that "precisely how much Toyota stock is held in the U.S. is a trade secret, but it is estimated at 10 to 20 days for key parts."

One of the biggest concerns for Japanese businesses now is electric power because the emphasis is on providing power to individual homes.

If it has to, Toyota can shift its supply chain to support production at any of its plants around the world in about 90 days. "The company is among the best in the world at this," Hales said.

"Also, high-tech chips for computer memory and cell phone technology that are sole-sourced in Japan could run short, which will stop U.S. plants as well," Hales said. "Again, how much stock American plants have on the shelves is not publicly shared.

"On a more strategic note, Japan has just fallen to third place as the world's largest economy, now following China," Hales said. "My best estimate places the Japanese Gross Domestic Product loss, through its supply chain, of this earthquake to be about 7 percent."

Hales said Japanese restaurants in the U.S. that buy products from Japan will begin to run out of those ingredients in 15 to 20 days. Because there is a serious food shortage in the affected areas, Japan has virtually stopped all food exports for now, he said.

Hales said the French are worried about the quake's effects because the country exports more to Japan than it imports.


Story Source:

The above story is based on materials provided by University of Rhode Island. Note: Materials may be edited for content and length.


Cite This Page:

University of Rhode Island. "Earthquake could mean major shortage of some Japanese cars in US." ScienceDaily. ScienceDaily, 16 March 2011. <www.sciencedaily.com/releases/2011/03/110316134415.htm>.
University of Rhode Island. (2011, March 16). Earthquake could mean major shortage of some Japanese cars in US. ScienceDaily. Retrieved November 26, 2014 from www.sciencedaily.com/releases/2011/03/110316134415.htm
University of Rhode Island. "Earthquake could mean major shortage of some Japanese cars in US." ScienceDaily. www.sciencedaily.com/releases/2011/03/110316134415.htm (accessed November 26, 2014).

Share This


More From ScienceDaily



More Earth & Climate News

Wednesday, November 26, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Bolivian Recycling Initiative Turns Plastic Waste Into School Furniture

Bolivian Recycling Initiative Turns Plastic Waste Into School Furniture

Reuters - Innovations Video Online (Nov. 26, 2014) Innovative recycling project in La Paz separates city waste and converts plastic garbage into school furniture made from 'plastiwood'. Tara Cleary reports. Video provided by Reuters
Powered by NewsLook.com
Antarctic Sea Ice Mystery Thickens... Literally

Antarctic Sea Ice Mystery Thickens... Literally

Newsy (Nov. 25, 2014) Antarctic sea ice isn't only expanding, it's thicker than previously thought, and scientists aren't sure exactly why. Video provided by Newsy
Powered by NewsLook.com
3D Map of Antarctic Sea Ice to Shed Light on Climate Change

3D Map of Antarctic Sea Ice to Shed Light on Climate Change

Reuters - Innovations Video Online (Nov. 24, 2014) A multinational group of scientists have released the first ever detailed, high-resolution 3-D maps of Antarctic sea ice. Using an underwater robot equipped with sonar, the researchers mapped the underside of a massive area of sea ice to gauge the impact of climate change. Ben Gruber reports. Video provided by Reuters
Powered by NewsLook.com
Car Park Solution for Flexible Green Energy

Car Park Solution for Flexible Green Energy

Reuters - Innovations Video Online (Nov. 24, 2014) A British solar power start-up says that by covering millions of existing car park spaces around the UK with flexible solar panels, the country's power problems could be solved. Suzannah Butcher reports. Video provided by Reuters
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Plants & Animals

Earth & Climate

Fossils & Ruins

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins