Automakers Slowly Recovering From Quake Damage

VOA Breaking News (Voice of America)
March 28, 2011 at 5:10 pm

The auto industry around the world is feeling the effects of the natural disasters and nuclear accidents plaguing Japanese manufacturers.

Japan exports many auto parts that go into cars assembled in other nations. That means Japan's problems are being felt in the United States where General Motors temporarily closed one plant and in Europe where the Wall Street Journal reports that Peugeot-Citroen cut back production

Some auto plants in Japan are back in business, others will reopen soon, but some remain closed. Even plants outside the worst-hit areas are sometimes hampered by power shortages and transportation problems.

In Japan, Toyota restarted production of the Prius and two Lexus hybrids Monday, but is expected to keep most of its other plants closed into next week. Honda extended its production halt in Japan to April 3. The company said last week it would resume production of motorcycles and power products at its plant in Kyushu in southern Japan.

Subaru says is resuming some production of mini-vehicles, but will keep other plants that manufacture passenger vehicles closed until at least the end of March. Suzuki says one plant is still closed, while several others are working at a reduced level.

The slowdowns at auto plants are expected to reduce choices of parts, models, and colors and boost prices for some popular models.

The disaster has also affected tire plants, brewers and other companies.