Global auto market could lose 5 million vehicles due to Japan quake

Japan Earthquake Disaster
Japan Earthquake Disaster

Fallout from the current crisis in Japan has put a dent in the global auto industry to the tune of 320,000 vehicles. If the rolling blackouts continue, it is forecasted that that number could reach 5 million before supply chains and production plants return to normal.

“We could potentially lose up to 5 million units and while much of it could be made up over time, it could not be made up in 2011,” said Michael Robinet, director of global production forecasting for IHS Automotive. “As we stand today 18% of global auto output is down.”

Most forecasts had predicted the industry to pump out 74 million units this year.

All production in Japan has idled, and Toyota and GM’s North American operations have been affected. Toyota will resume production of the Prius and Lexus HS 250h and CT 200h hybrids next week in Japan.

Honda is a different story entirely, with 19 of its suppliers in the radiation zone.

– By: Stephen Calogera

Source: Free Press