Japan quake still reverberates through auto industry

Car dealers are feeling the ripple effects of Japan's earthquake- and tsunami-hobbled auto industry.

Parts pipelines have lost steam, production of some Japanese-made models has been crippled and competitors are circling to pick up prospective customers.

"Right when things were getting better and people are opening their wallets again to buy cars, this happens," said David A. Rodgers, general manager of the Sullivan Automotive Group, which operates a Toyota dealership in Roseville, Calif. "But that's the reality. ... You feel terrible for people in Japan."

Following the March 11 quake and tsunami, Toyota's car production in Japan plummeted 63 percent in March. Full production of some popular Toyota models, such as the Prius hybrid, likely won't be restored until late this year.

Honda's production in Japan plunged 63 percent last month, and Nissan was off 52 percent. Honda expects its Japanese plants to operate at about about half capacity through June.

Katina Rapton, president of Mel Rapton Honda in Sacramento, Calif., said Honda's gas-electric hybrids, some of its CR-V sport-utility vehicles and the compact Honda Fit are made in Japan.

She's concerned about having adequate supplies of Honda's high-volume sellers -- the Civic and Accord passenger cars. "The biggest problem is not so much the cars, but the parts," Rapton said. "Honda was hit particularly hard, and it won't pick up for a while."

Rodgers said Roseville Toyota's inventory was solid for the shipping period immediately before and after the earthquake.

Toyota in Japan has announced plans to continue procuring parts from existing suppliers and to consider substitute parts from other suppliers. The company said about 150 parts -- mostly electronic, rubber and paint-related -- affect new vehicle production.

Toyota has North American production facilities, Rodgers noted, "so unlike Lexus, Toyota isn't feeling the full impact right now."

Nissan dealer John Driebe said his dealership is holding up, but he's worried about the summer months. "We have over 300 Nissans for the month of May, so that's not a concern," he said, adding that "it's going to get much tighter" in June and July.

"It sounds like a sales pitch, but it's true. If you've been waiting to buy a new car, it's going to be better sooner than later, when we get into July and August."

Driebe said U.S. Nissan dealers have an advantage, because about 75 percent of Nissan vehicles sold in the United States are produced domestically.

Other concerns are a natural byproduct of the car-selling business: competitors snatching up customers who might otherwise look at Japanese-made vehicles.

Ford Motor Co. CEO Alan Mulally said this week: "There will be some opportunity for us to serve even more consumers going forward. Clearly, with this much disruption, demand is going to outpace supply."

(Contact Mark Glover at mglover(at)sacbee.com.)

(Distributed by Scripps Howard News Service, www.scrippsnews.com.)

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