Japan is slowly taking steps to resume auto and parts production after the devastating earthquake and tsunami hit on March 11, with auto companies starting limited production throughout the week. Due to aftershocks, rolling blackouts and infrastructure problems, Japanese auto factories have remained idle costing Japanese automakers an estimated $150 million a day, according to Goldman Sachs.
The IHS Automotive Insight states that “lost production outside of Japan is so far about 10,000 vehicles, but that number will rise ‘exponentially’ as more parts suppliers are affected, reducing stockpiles of components for cars and trucks built overseas”. The U.S. is starting to feel the effect, as General Motors Co. will shut down production at its 900 employee pickup plant in Shreveport, La. next week, which relies on Japanese made transmissions.