Crippled car production in Japan now impacting Hawaii auto dealers

The auto industry has been through tough times before, but this time car dealerships are facing a new challenge: demand is up – but there’s short supply.

"Our hybrids, Prius have been in short supply," said Servco Automotive President Rick Ching.

Toyota Motor Corporation says that Japan production in April fell 74.5 percent – following the devastating earthquake that struck Japan in March.  Those effects are just now hitting Hawaii.

"Parts supply issues, logistics issues, power issues certainly in Japan shipping issues so not one single thing causing the cars not to get here to the customers," said Ching.

According to Ching, the Scion models, Toyota 4-runner, Yaris and Prius hybrid are in-stock in limited numbers.

"We have some vehicles that are in short supply and other models that are in good supply throughout the state," Ching Explained.

Honda and Nissan Motor Companies also produced fewer vehicles in Japan last month compared with a year ago.

Believe it or not, Korean automakers are also feeling the effects, because of the demand for some popular colors.

"Black and red will be impacted with the problems in Japan," said Larry Davis, Tony Group Autoplex-Hyundai.

Davis said there’s a chemical compound in the two body paint colors that are only processed in northern Japan.

"So it’s a problem for all the car manufacturers throughout the country because that’s where we all get that color from," Davis explained. "Which I didn’t know until we couldn’t get the color."

He said, for now, new car buyers might have to compromise on their color choice.  But he doesn’t think the slowdown will mean a severe car shortage for any dealer.

"You won’t come in and find an empty lot, there’s still going to be plenty of vehicles to be sold," Davis said.

Most dealerships say to offset the slowdown – they are pre-selling cars in advance – anticipating that new shipments will arrive by the end of August.

See the original article at: KHON2 Local News

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