A distant catastrophe hits home for car buyers

Several Nissan plants reopened this week, but the company has said its facilities are still producing at half the volume originally planned for April, which will probably lead to shortages in months ahead. Honda is in a similar situation.

Some Japanese manufacturers are also cutting production at US operations, which depend on supplies from Japan for certain car models. Toyota last week said it would suspend production at most of its North American plants for several days this month, with shutdowns planned Monday, Thursday, and Friday.
“We are slowing down to conserve parts yet maintain production as much as possible,’’ Steve St. Angelo, executive vice president of Toyota Motor Engineering and Manufacturing in North America, said in a statement. The car maker said yesterday that its Japanese plants will continue to produce at half their normal volume until at least early June.
Gary Jaffarian, a third-generation car dealer who sells Toyotas, Scions, and Volvos at Jaffarian Automotive Group in Haverhill, said he expects any shortages to hit by June and last no more than a few months. He is already fielding questions from customers worried about being able to buy a new car or service older ones.
“We’ll find a way to get a car for you; we’ll find a way to fix your car,’’ he assures them.
One customer, Stephen Buscema of Haverhill, said he isn’t concerned about a parts shortage, but is thinking about what work his wife’s 2005 Lexus RX 330 might need in the near future.
“What’s coming up as far as major service? Do I need to buy an air filter?’’ he said. “If there’s something that the engine absolutely needs, I might be prone to go looking for it.’’
Kevin Lawrence, Jaffarian’s wholesale parts manager, said one way Toyota is managing possible shortages is by only sending parts that might be in short supply if they are needed for immediate repairs. To get a part, dealers must send in a form with the Vehicle Identification Number of the car getting fixed.
“They want to make sure,’’ Lawrence explained, “that people aren’t just putting this stuff on the shelf to have it on the shelf.’’
Part of the problem, analysts said, is the auto industry’s use of a “just-in-time’’ inventory management system, which replenishes supplies to dealers just as they run out. When that system is disrupted, there are no significant stockpiles to fall back on.
“It has a huge trickle-down effect,’’ said analyst Phil Magney, automotive vice president for IHS iSuppli, which researches distribution networks. “At the end of the day, if that raw material or that raw component that comes out of Japan is out of stock, everybody in the supply chain is affected.’’
To maintain as much inventory as possible, Boch and Ciccolo said, they will promptly report every car sold and urge other dealers to do the same, because regional sales help manufacturers determine where to send more cars. But if inventory dwindles, dealers said, it will force customers to compromise on what they want in a new car or delay the purchase.
To prepare for the months ahead, Ciccolo said, he plans to take every car offered by an automaker. In the past, he explained, he might have quibbled over things like model or color.
“Now, there’s no negotiation,’’ Ciccolo said. “Send me every car you can.’’

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