On Thursday, Toyota announced its overseas plants may need to shut down, which could have an effect on car prices. A spokesman from the auto manufacturer told all 13 of its Toyota factories in the United States, Canada and Mexico that they should be ready for the worst due to parts shortages from Japan.
Parts Shortages Could Cause Shutdowns
North American Toyota plants are possibly on the brink of shutdowns due to the after-effects of the March 11 earthquake and tsunamis that hit Japan.
Car production in the Japanese plants has already been shut down since the disasters crippled the country and while some overseas suppliers have recently started producing parts again, even they are slow in production because the components they create rely on parts made in Japan.
Since production is nowhere near the level it was prior to the quake, Toyota spokesman Mike Goss told North American factories that they need to prepare for the possibility of shutdowns. While he noted the plants probably won’t have to completely stop production, he did explain the plants should ”expect some kind of interruptions.”
Plant Shutdowns Could Increase Car Prices
We reported on Tuesday that auto prices are expected to increase due to slowed production in Japan. However, with the possibility of production halting at all of the plants in North America, this likelihood increases.
Experts have noted that the lack of vehicles in production will increase demand considerably, making the prices for these vehicles skyrocket. Even some American cars could be affected. General Motors was forced halt production in a plant in Shreveport, La. as well as one in Buffalo, N.Y. because several of its cars are built with parts from Japan, meaning we could see increases in American-made cars as well.
Some think the increase in prices could come as soon as this week and could last as long as April or May. So if you’re in the market for a new vehicle, now would be the time to start exploring your auto loan options.
