American auto makers are wondering, where's the earthquake button.
Earthquakes seem to be the only way to slow down the Japanese car makers.
In July, production was down 10.5% due to major earthquake that hit Niigata largely because Riken Corp's factory was damaged and the supply of piston rings was held up. American car companies might have piles of rings in storage for just such an eventuality but...the car buyer pays for that storage.
Japanese car maker have a just-in-time policy where the parts show up when
they are needed so as to keep down costs by not requiring storage and handling and re-handling.
Riken has some 50% market share in piston rings.
Toyota Motor Corp plans to recover loss production by November.
In fact, Toyota plans to set a new standard for yearly production by 2009....10.4 million vehicles!
Just-in-time supply and demand works...except when there is a natural disaster.
Which happens how often?
Meanwhile, GM, Ford and DaimlerChrysler are looking for the button.
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