By Kellie Lala
Japan’s horrific earth quake and tsunami has far reaching effects. Not just to loved ones around the world but also on many a business. I found the pictures and images simply amazing and upsetting. What a horrible thing for those people. I really didn’t stop to think about the effects that this disaster might have on business until I started to see business articles surface. According to Automotive News on March 21, 2011, North American auto makers, suppliers and dealers are preparing for shortages in both parts and vehicles. What does that mean for us as consumers? Higher prices on new cars and parts, higher gasoline prices and limited production on certain brands and models. Assembly plant shutdowns will mean a loss of nearly 300,000 units by months end. All the biggies-Toyota, Honda, Mazda and Suzuki motors were shut down for at least a week after the disaster. Japan also exports 2 million transmissions a year to the USA. Those plants were severely damaged as well, making auto parts prices bound to rise in the months ahead. Many analysts are afraid to make predictions on the impact of the disaster. What we do know is that the earth quake’s ripple effects goes far beyond the human tragedy. I pray that Japan can recover from this sooner than later.
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