March Auto Sales Solid, But Effect Of Japan Quake To Be Felt This Month
March was a solid sales month for most Japanese automakers in the United States, but the impact of the massive quake in Japan is likely to weigh on their sales later this month and in May.
Bob Carter, a senior manager at Toyota Motor Sales USA, said the North American operations were "somewhat insulated" in March from the disruption in the parts-supply industry in Japan, reported The Detroit News.
About 70 percent of the vehicles Toyota sells in the United States are built at its North American plants, which are all running, unlike the Japanese plants.
But Toyota and Honda Motor Co. recently said stoppages were likely at their North American factories because of shortages of crucial parts shipped from Japan.
"We know there will be challenges in the coming months as we continue to deal with supply chain issues," said John Mendel, executive vice president of sales for American Honda.
Nissan Motor Co. said Friday that it would suspend production at several North American plants for a few days this month.
It will halt output at its Canton, Miss., factory, and at its Smyrna and Decherd plants in Tennessee on April 8, 11 and 18 through 21. Production will be stopped at the Cuernavaca facility in Mexico this week and in Aguascalientes during the week of April 11.
Jesse Toprak, analyst at pricing specialist TrueCar.com, said Japanese automakers still have plentiful inventories of most, though not all, vehicles.
"There are going to be shortages of vehicles made solely in Japan," such as the Toyota Prius, he said. Toyota has an 18-day supply of the popular hybrid.
But "the impact in April is not going to be dramatic," he said. "There'll be more of an impact in late April and May."
The leading beneficiaries of the Japanese automakers' misfortunes are likely to be Detroit's automakers, Hyundai Motor Co. and Germany's Volkswagen AG.
South Korea's Hyundai has a lineup of fuel efficient and quality cars that compete directly against the Japanese brands, and it doesn't rely heavily on Japanese components in its manufacturing process. "By far, Hyundai's going to be the biggest beneficiary," Toprak said.
General Motors Co. and Ford Motor Co., which have a competitive lineup of fuel-efficient cars, are expected to benefit, investment firm Deutsche Bank said in a research note Friday.
"Their market shares are likely to rise as Japanese (automakers') inventories fall," it said.
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →