Without further research I’m told that domestic manufacturing plants inventory of parts to build Japanese cars in the USA may run out tomorrow. That said we do not know how much inventory of parts is currently in the pipeline. So as we struggle with our budgets, and cities have become so dependent on taxes from auto sales, I would urge city council members to cut back on their expectations until we have a full picture of the magnitude of the work stoppage. Think about it for a moment. Yes, dealers have new car inventory on their lots but how long will that last? And what about spare parts if your car needs to be serviced? The same shortages may apply.In Mission Viejo we have 3 successful Japanese vehicle dealerships. Acura, Infiniti and Lexus. As reported in the Wall Street Journal “Carmakers are going to keep assembly plants closed until they are certain that the supply chain has recovered enough to meet the demands of regular production, and that could take a while.
The situation may be bleaker for suppliers, reported the WSJ. North American car production could be slowed if parts are delayed.
Baird analyst David Leiker said infrastructure damage from the quake could affect shipments. The smallest Toyota sold in the United States, the Yaris, is built at a plant near Sendai.
“The situation requires watching,” he wrote in a client memo, adding that interrupted shipments from Japan could have a ripple effect around the world.
Mr Dennis Virag, president of the Automotive Consulting Group, a consulting group assisting manufacturing companies with growth, said: “It is a very bad situation.”
He added: “Japan has excellent ports, but they are going to be the focus of rescue efforts. I don’t know how much (non-relief shipping) is going to be going out for a while.”
We have only addressed one high ticket product. How will this disaster impact the big box stores remains to be seen.
You are reading wrong financial reports from the Wall St. Limousine Democrats a.k.a. Jew$ who are manipulating money markets to screw you to get zillion bonu$e$.
Your cut and paste financial journalism needs some guidance.
Ask me, the merlin4x, the real FX trader for an financial advise and pork belly.
Speaking purely for our little city, Larry is right that our JIT councilmembers need to be more long term in their planning. The budgets that we see are spending money that was mostly saved during the run up in markets and while I was there when we enacted an austerity budget. Now, they are reaching into the bank accounts, rearranging the life expectancies of buildings and roads in the city, and generally looking out towards planning their future (and ours) on the real estate market coming back soon, and the sales tax we enjoyed for years to remain strong.
Mission Viejo is not an island. We are very dependent upon not only our residents, but those who come here specifically to buy cars, homes, and eat dinner in our restaurants. Anyone, especially an elected official, who thinks and acts like they brought on this prosperity in the city is not only sorely misled, they are headed for a bad awakening when this all shakes out.
I am not just talking about the recent events in Japan. In 2008 when the market melted down, the city’s revenue declined due to property tax decline. Our sales taxes have declined. Our retiree costs never go down. In fact, when CALPERS loses money, they just have the city pony up more to cover it. Our employees have a ‘guaranteed’ pension. Long term vision is essential in that planning.
Hope for the best, but prepare for the worst.
We haven’t begun to talk about the $50million the city owes in bonds.