12
Apr
11

automaker inventories affected

 

This month U.S. dealers will probably begin to see an effect on their car inventories, particularly small cars, due to the overall halt in production in Japan. It’s now been a month since the major earthquake and tsunami hit Japan, effecting global production and forcing the shutdown of assembly plants. Among the many, many obvious problems these natural disasters have caused, they have also had a dramatic effect on global auto production.  Some of the consequences of these shut downs; days in inventory numbers are down from last month and depending on the automaker down to as low as 22-day supply  (Kia cars) and 23-day supply (Ford Focus). Many other automakers, such as Toyota Motor Sales, American Honda and Ford Motors, are at less than 60-day supply which is considered ideal. As days in inventory numbers decline automakers such as Toyota are being proactive and prioritizing distribution by  managing inventories in hopes of ensuring that high-demand vehicles such as the Toyota Prius remain available.

Even with all the effects that the Japan earthquake and tsunami have had on global production most see the production disruption as short-term and not having a major effect in the long run. Both GM and AutoNation have kept their forecasts for the remainder of the year the same. On the other hand the consulting firm of IHS Automotive sees an American auto production shut down like the one seen in Japan auto production just weeks away. They see that non-Japanese automakers will have their own product shortages by summer. Overall it looks like automakers, both Japanese and non-Japanese will continue to see effects but for how long and how dramatic remains to be seen.

To read the entire article in Automotive News, please click here.


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