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How will the earthquake in Japan affect the auto industry?
Posted: 03.14.2011 at 2:05 PM
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The earthquake in Japan could have a major impact on the auto industry here.

Japan is home to the largest manufacturer of vehicles, Toyota, and it supplies parts to several United States companies.

Japanese auto-makers are trying to get back on their feet and on the production line after the devastating 8.9 magnitude earthquake Friday.

Several plants shut down or were put on idle as Japanese auto officials assess the damage.

One Honda worker was killed and 30-others injured when the walls and ceiling started crumbling at a research facility.

Toyota has been able to restart production on all but four of its Japanese plants.

Automotive expert John McElroy of Autoline says from an automotive standpoint the earthquake could have been much worse.

"As horrific as all the images are that we've seen of earthquake damage, that was largely relegated to the coast and the manufacturing base is located much farther inland," says McElroy.

However, several plants of Japan's big seven automakers are still not back to normal.

Their rebound will have a direct affect on when customers across the globe will be able to get service parts and also if production could be stalled in the U.S. for Americans that build Japanese brands.

McElroy says, "Japanese suppliers ship components all over the world. If they have to be shut down for more than a couple of weeks at a time, it will absolutely impact other facilities overseas."

It could also impact car shoppers and force them to choose another brand based on availability.

From most accounts, many Japanese production facilities say they'll be functional by Wednesday. Others say, by the end of the week.

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