Lack of electricity new challenge for Japanese automakers
(March 28, 2011) TOKYO — Japanese automakers, facing a shortage of parts, may soon face a new challenge — not enough electricity to operate their factories.
With several electric power plants knocked out by Japan's devastating March 11 earthquake, there is a growing gap between the amount of power produced and the amount Japan's industrial base needs, the trade paper Automotive News reported today.
The lack of sufficient electricity is a problem that is expected to worsen as more factories come online after the quake, and as air conditioning needs rise with the approach of summer. A key issue is whether there is enough power to simultaneously support two of Japan's most important industries — automaking and electronics.
Automotive News reports that Industry groups are considering several remedies:
• Rotating production holidays between the automotive and electronics industries.
• Reducing overall use of electricity in exchange for a minimal but steady supply.
• Alternating production downtime between individual automakers.
The first two options are more likely, says an official at the Japan Automobile Manufacturers Association, or JAMA, the industry group coordinating the automakers' response.