Earthquake Damage Stops Japan Car Production
July 20, 2007

Japan’s major car companies have halted vehicle production because of earthquake damage to a key supplier’s plant.

Honda, Mitsubishi, Nissan and Toyota stopped production due to damage to Riken, a piston ring and seal manufacturer. The automakers use just-in-time delivery so assembly plants maintain very few parts in stock.

Experts say the temporary production halt will have little impact overall for the year since the automakers can make up the production in the usually slow month of August.

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