Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Long Pause For Japanese Industry Raises Concerns About Supply Chain

March 16, 2011
3 min to read


TOKYO - Japan’s vaunted “just in time” approach to business has become “wait and see.”


Much of Japan’s industry seemed to remain in a state of suspension Wednesday, as the devastation from an earthquake and tsunami, combined with fear and uncertainty over the nuclear calamity, made it difficult for corporate Japan to think about business as usual, reported The New York Times.

Ad Loading...


And that has left many overseas customers and trading partners in something of an information vacuum, unsure how soon the effects of any supply-chain disruptions would make themselves felt — and how long they might last.


Even General Motors, a company that might seem to benefit from disruptions to Japan’s auto industry, finds itself in a period of watchful waiting. For one thing, the new Chevrolet Volt plug-in-hybrid from G.M. — whose sales could conceivably benefit from any production snags in Toyota’s popular made-in-Japan Prius — depends on a transmission from Japan.


Mark L. Reuss, G.M.’s president for North American operations, said Wednesday that he did not yet know whether his company could count on an uninterrupted flow of that Volt component from Japan.


“We just don’t know from a supply standpoint; there’s so many great things that come out of Japan for the whole industry,” he said, speaking to reporters after a speech at the University of Detroit Mercy.


Here in Tokyo, Japan’s business capital, many companies — whether Japanese or foreign — were distracted Wednesday by plans for removing their employees from the potential path of radiation from the damaged Fukushima Daiichi nuclear power plant 140 miles north. Telephone calls and e-mails to many corporate headquarters in Tokyo simply went unanswered.

Ad Loading...


Air Liquide, a French company that is the world’s biggest producer of industrial gases, has closed its head office in Tokyo and moved its operations 250 miles south to Osaka.


The German auto giant BMW, which has 800 employees in Tokyo, is sending its few dozen German employees home and offering local workers safer locations within Japan.


Even the America unit of the Japanese auto company Nissan has ordered any employees traveling in Japan on business to return home.


Within Japan, Nissan has suspended many of its manufacturing operations at least through the weekend because “it is still taking time to arrange delivery of parts from our suppliers,” the company said in a statement. Nissan’s engine plant in Iwaki, near the coast in the earthquake-stricken region, remained out of action, the company said.


Meanwhile, many American electronics companies remain uncertain — or decline to say — whether supplies of crucial components from Japan will hit air pockets. But Dallas-based Texas Instruments acknowledged that one of its Japanese factories would be at least partially out of action until July and would not resume shipping at full capacity until September.

More Industry

blue subaru crosstrek in city with Save with SUVS text and Providers and Administrators logo
Industryby Lauren LawrenceMarch 17, 2026

Safety Drives Insurance Rates

Sixteen out of the 20 cheapest vehicles to insure in 2026 are SUVs, according to CarInsurance.com, largely because of their safety features and lower repair costs.

Read More →
Close-up photo of the front of a new-looking white car
Industryby Hannah MitchellMarch 17, 2026

New-Vehicle Shoppers Get Some Relief

Overall conditions in February tipped slightly in consumers’ favor as prices stayed high, granting a reprieve of sorts just before the war on Iran commenced and started to reverse the welcome trend.

Read More →
row of cars, used vehicle demand spikes, chart showing data spike, F&I and Showroom logo
Showroomby Lauren LawrenceMarch 11, 2026

Used Market Gains Speed

New-vehicle sales fell year-over-year for the fifth month in a row in February, making retail deliveries the slowest they’ve been since 2023, according to a CarGurus report.

Read More →
Ad Loading...
text reading Auto Loan Defaults Reach 2% on desk background with car keys, calculator, notepad, and toy car
Industryby Lauren LawrenceMarch 10, 2026

Auto Loan Defaults Measured Amid Inflation

According to LendingTree data, the average monthly auto loan payment was $540 in the fourth quarter, and the average credit score for those with a recorded default was 529.

Read More →
Photo of rear of electric 2026 Mercedes VLE
Industryby Hannah MitchellMarch 10, 2026

No End in Sight for Vehicle Inflation

The February average transaction price was well above a three-year average annual bump, but Cox analysts consider today’s prices to be on the normal side.

Read More →
Graphic showing used-vehicle days to turn rate
Showroomby StaffMarch 10, 2026

Black Book: Weekly Market Update

Both vehicle values and conversion rates sped up last week as two segments outperformed in the pre-spring burst of buying.

Read More →
Ad Loading...
Photo of Chevrolet Bolt on a beach
Showroomby Hannah MitchellMarch 9, 2026

Economical Electric

GM says it sells the cheapest electric vehicle in the U.S. market. It explains how it made improvements to the entry-level EV while keeping its price down.

Read More →
Showroomby Lauren LawrenceMarch 4, 2026

Used-Vehicle Program Aims to Draw More Buyers

GM says more than 750 dealers across the U.S. are enrolled in CarBravo and that in January CarBravo dealers sold over two times the certified volume of Chevrolet, Buick and GMC dealers using traditional CPO.

Read More →
Industryby Hannah MitchellMarch 3, 2026

Auto Dealers Cautiously Hopeful

Though traffic and profits were down in the first quarter, normally optimistic franchisees and independents saw dim current conditions while holding out visions of healthy spring sales.

Read More →
Ad Loading...
Industryby StaffMarch 3, 2026

Black Book: Weekly Market Update

Conversions picked up last week at wholesale vehicle auctions, according to the market observer, as the spring shopping season appeared to begin.

Read More →