Facing parts shortages and production delays in the wake the disaster in Japan, General Motors has become the first big-three automaker to freeze spending for the foreseeable future. The move comes nearly a week after GM halted pickup truck production in Shreveport, Louisiana, due to a shortage of Japanese sourced components. The spending freeze will impact GM’s hiring, as well as corporate travel and advertising budgets; the frightening thing is that these will remain in place for an undetermined period of time. The company has also announced temporary production stops at plants in Eisenach, Germany and Zaragoza, Spain.
Neither Ford nor Dodge have announced production delays or spending freezes related to the situation in Japan, but all of the major Japanese automakers are facing production delays that will have an impact on new car availability. Retail prices for Toyota Prius and Yaris models have already increased, as dealers face a pending supply shortage of unknown duration. Expect similar price increases across the board, especially on Japanese manufactured vehicles.
Source: Detroit News