All About Japan Autos

Earlier this week, we updated you on vehicle and vehicle parts shortages that resulted from the earthquake and tsunami in Japan. We have a few more updates. On Tuesday, Toyota told U.S. dealers to limit orders for more than 200 parts because it’s afraid of running out, and Honda stated that it will cut production at U.S. plants starting March 30 because of shortages.

We’ll start with Toyota’s announcement. In a March 29 press release, the automaker states, “It has been confirmed that damage sustained by certain Japanese parts suppliers will interrupt their normal production. Inventories of parts from these suppliers are currently adequate. However, in order to maximize future availability, approximately 233 part numbers, out of over 300,000 active part numbers (less than 1%), have been placed on controlled allocation.“

Controlled allocation requires dealers to request parts manually and indentify which customer vehicle needs a part. Toyota requests that dealers only order what is “critically needed to support customer emergency need and true customer demand.” Basically, Toyota doesn’t want dealers to hoard parts.

While 233 parts is not many, especially when there are over 300,000 components available, dealers have noted that some parts fit high-demand models. “Dealers said the parts include brake rotors, body panels, shock absorbers and other components,” The Boston Globe explains. “They mainly are for the Prius gas-electric hybrid and hybrid versions of the Highlander SUV, and the Camry midsize sedan.”

Toyota has not announced when it will adjust U.S. production, but Honda has. “Honda informed associates at its U.S. and Canadian auto plants today [March 29] that the company will implement a strategy of temporary adjustments that will reduce daily production levels,” Honda states in a press release. “These temporary adjustments will commence on Wednesday, March 30 and will vary from plant to plant based on parts availability. Honda is making every effort to keep plants operating without extensive interruptions.”

The Boston Globe adds that the shutdowns are occurring because Honda needs more engine, transmission and electrical parts that are produced in Japan.

Decreased production from two major Japanese automakers is not good for consumers, especially when shoppers are after fuel-efficient Japanese models like the Honda Civic and Toyota Prius. If you do decide to get a car now, you might not have a wide range of options, since the color or feature you want might be unavailable. Plus, with so many consumers in the market for fuel efficient cars, you probably won’t save as much on a Civic or a Prius as you would have before gasoline spiked and the tsunami hit. That’s because the sticker price will be higher, which means it will take longer for the gas savings to make your purchase worthwhile.

Some industry analysts say it’s a good idea to wait. It’s possible that gas prices will drop in a few months, which means that demands for fuel efficient cars will drop, and as a result, prices should too. You should also monitor the crisis in Japan. Once production gets back to normal, you’ll be more likely to get the car you want along with an attractive incentive.

Shopping for a new car? Check out our list of this year’s Best Cars for the Money, then take a look at the best car deals in March. To stay updated on the latest news, follow us on Twitter.