Japan earthquake starts to affect US automotive stocks

Car manufacturers in the United States are beginning to feel the pinch from Japan’s earthquake three weeks ago, with Ford and Nissan halting production while they want for missing parts.

Australia’s big three car-makers haven’t announced any losses from the Japan earthquake yet, however Isuzu Motors said stocks for its trucks would be delayed for an unidentified period.

Ford Motor Co will slow-down production at its Kentucky, US pick-up truck plant next week, and Nissan Motor Co Ltd will lower production in the US due to parts shortages caused by the recent earthquake in Japan, according to Reuters.  

The Kentucky plant is the first US plant that Ford will be shutting because of supply chain issues related to plant closings in Japan. 

According to Reuters, Ford declined to say which parts or suppliers were involved. 

Ford is reportedly also halting production to get rid of excess stock of trucks and make the switch to small cars.  

"It not only addresses a short supply of a few components but it recognises the fact that at the retail level, consumer demand for full-size trucks has declined as we have (progressed) through this year," said Ford sales analyst George Pipas, as quoted by Reuters.

Nissan will reportedly adjust the output schedule at its US auto plants by shifting non-production days planned for later in the second and third quarters back immediately to April. 

According to Reuters, Nissan said the changes were made to avoid major supply disruptions and because some parts shipments are still in transit from Japan. 

Image courtesy of Drive.com.au

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