Earthquake in Japan could cause car shortage - WRCBtv.com | Chattanooga News, Weather & Sports

Earthquake in Japan could cause car shortage

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CHATTANOOGA (WRCB)-- Japan is known for numerous products we purchase here in the United States, including cars.

And with the devastation caused by a record 9.0 earthquake, car dealers both nationally and locally expect setbacks when it comes to supply and demand.

While many of the Japanese concepts are built here in America, some models are only built in Japan.

Johnny Pye, owner of Pye Automobiles, says he expects shortages.

"We don't yet know exactly to what extent yet, but we do feel there's going to be some shortages, especially on the cars that are assembled in Japan," says Pye.

The car dealer says even the models built in the U.S. rely on Japan for approximately 25% of the automotive components.

He says a long-term shortage could slow production and potentially impact the workforce.

"If there is a prolonged shortage of content from Japan, yes, it will slow the assembly lines and could create layoffs," says Pye.

Pye says he doesn't expect job loss at the dealership level or issues with maintaining cars already on the road.

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