First Navy Trainer completes biofuel flight at Patuxent River
General Motors launches Buick LaCrosse eAssist in China

Nikkei: higher auto output raises fears about parts shortages

The Nikkei reports that with the major Japanese automakers gearing up to sharply increase output in the second half of this fiscal year, shortages of tire and other autoparts are a growing concern.

Bridgestone Corp. has notified automakers that orders for passenger car tires will likely exceed its domestic output capacity. The firm is expected to face a shortage of an estimated 500,000 tires, or roughly 5% of orders received, this year.

...Japan Polypropylene Corp., a Mitsubishi Chemical Corp. group company, is having trouble keeping up with demand for resins used for such autoparts as bumpers. Inventories are running low at the key Kashima plant in Ibaraki Prefecture, which shut down for about two months following the March 11 earthquake. In addition, regular maintenance is scheduled at the plant from the end of this month through mid-October.

Eight major OEMs project a 2% year-on-year increase in global output in the second half, with major hikes planned in Japan.



The local temporary shortages will not last very long. Imports could solve the problem quickly enough.

The comments to this entry are closed.