Review Car

How Japanese Disaster Will Affect Buyers

The earthquake and tsunami that occurred in Japan is one that has disrupted the entire country and has killed many, making other people homeless. It is indeed a tragic disaster. However, as everyone knows, the country must pick itself back up and dust its knees off and get back to business. Which is exactly what the auto market in Japan is trying to do. There are still many automakers in the country that are unable to open up plants because of damage done, so right now the supply of cars that are coming out of Japan are a bit sketchy. In addition, parts coming out of Japan are just as sketchy and that has many dealers that are associated with the United States slowing down production. 

But, aside from a slow release of new vehicles, is the public going to be affected any more by this disaster? The research that has been done shows that every automaker is going to be affected with shortage of parts by mid to late April. But probably the biggest news of how the public will be affected by this disaster is that they are going to be paying more for those cars that are Japanese made, such as Toyota, Nissan and Honda. The reason is that these cars are going to be in demand as the auto makers are having to hold them from being produced and the simple laws of supply and demand come into affect then. 

For example, the 2012 Honda Civic is being delayed for sale in the United States due to Honda plants overseas. While Toyota is trying to make sure that they keep with their schedule of release for the new line of Prius automobiles that they are offering. Nissan on the other hand, is considering moving some of their plants to the United States, then they would ship the motors to Japan. This new route would cause the price to rise since it would involve more shipping back and forth. Though, the Japan plant is going to be out of commission for a while so they really have no other choice.