Several key automotive companies manufacture their vehicles in Japan, and even more rely on car parts made in Japanese factories to get their cars on the showroom floor. It has been more than two weeks since Japan was first hit by an earthquake, then a tsunami, and finally, the destabilization of a 30 year old nuclear reactor. More than half of a million disaster survivors are still waiting to get rescued from their makeshift homes at disaster shelters, but few will be able to return to the towns and cities that have been destroyed. What is even more troubling for Japanese leaders is the fact that several of their key industries have been indefinitely ceased production. No shipments of vehicles or auto parts have left Japan since March 15, and it could be many more weeks before the first batches begin to trickle out again. Even then, factories will have to run on skeleton crews as few workers will be returning to work immediately.
In response, some car makers in the US and Europe have been looking for suitable replacement car parts in other parts of Asia. This may prove to be a somewhat risky business move as producing vehicles with different types of parts can lead to recalls and other issues in the future. Alternatively, some automotive manufacturers are planning to wait until Japan begins to show signs of progress before weighing all of their options. Japanese auto companies have completely shut down, but they are expected to reopen within the next few weeks.
