Disaster overseas might impact automotive sales back home [Video]
Posted on Wednesday, April 20, 2016 at 3:50:16 PM
When a major disaster strikes overseas, global supply chains will almost always be at risk of experiencing major disruption or shutdowns. This is especially true for industries that have a very large and diverse global network of suppliers and partners, such as automotive manufacturers. One major natural disaster recently took place in Japan, and it might impact the American automotive market.
AutoBlog reported that an earthquake that hit the Kumamoto Prefecture in Japan's southern islands is likely to have a significant impact on manufacturing giant Toyota, which was forced to halt operations in the wake of the event. The source noted that supply shortages for parts were felt almost immediately, but it is yet to be seen how costly the earthquake will be.
Because Toyota has many plants in the United States, the domestic supply chain might be able to bear the brunt of the hit.
In America, Toyota and other major international automotive manufacturers have been more successful of late thanks to rising consumer confidence and surging car purchases. Now is an exceptional time to look into auto financing programs, as rates are competitive.