DETROIT (WWJ) – Japan had better gets its auto supply pipeline back up and running in a hurry. Otherwise, the result could be fewer new cars for sale in America and potentially higher prices. So says Sean McAlindin, chief economists for the Center for Automotive Research.
McAlindin says nearly every car built in the U.S. relies on parts from Japan, mostly electronics:
“There’s just no built-up reserve, expect for what might be on a ship already on its way here. But many of these electronic components are flown here,” says McAlindin.
General Motors is shutting down production at a pickup truck assembly plant in Shreveport, Louisiana, Monday due to a lack of parts. Ford and Chrysler say they have not been affected so far.