Hybrid vehicle production stalled by Japanese earthquake

Many Lexus, Toyota, and Honda hybrid cars are produced in Japan and the earthquake could cause a drop in production and lead to limited supplies of hybrid vehicles, just as gas prices appear poised to trend higher at any time.

Hybrid supplies set to decline just as gas prices set to increase?

Toyota, Lexus and Honda hybrid supply issues?

Today, Toyota produces most of its hybrid cars in Japan, as does Honda. Likewise, the Nissan Leaf is currently only produced in Japan. Unfortunately, Japanese auto production has been halted by the earthquake and subsequent tsunami.

According to some reports the production shutdown in Japan could reduce auto exports by 10's of thousands of cars, reducing supplies and possibly leading to pricing increases.

In addition to the Toyota Prius and the Nissan Leaf, all Lexus hybrid vehicles are produced in Japan, including the recently released CT 200h hybrid. Additionally, the Honda CR-Z and Honda Insight are also produced in Japan.

Concurrently, tensions in the Middle East continue to flare up, particularly in Bahrain – imposing a bottom on oil prices of around $100 per barrel, with great upside risk still looming.

If tensions continue to rise and push gas prices higher, demand for fuel efficient vehicles like hybrid cars will continue to increase, yet supplies for these vehicles could be hampered, creating a perfect storm of bad news for hybrid buyers.

Source: Kicking Tires


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