Hey folks,

I'm hearing stuff from automobile journalists that cars made in Japan will push up prices on cars already here due to the earthquake.

Hadn't thought about that.

If you're looking for a new one, please post here about any price increases you're seeing.

 

That would be good for the US and European manufacturers.

 

what would be the reasoning behind that? Link?
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Higher new car prices should mean high resale values for curent owners.

 

My guess is a supply and demand thing. If they are not able to produce any or as many vehicles for a timeframe and existing supply from the manufacturer is unavailable or damaged and the demand has not changed the prices will go up on what is currently in the marketplace as the ratio of people to available product has increased, but I would be interested in reading the article myself as well. This is such a short term event I dont see it having much market impact in the long run.

 

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James Healey mentioned this in his weekly USA Today car chat.

USATODAY.com Chat Transcript

 

Even domestic makers are using some Japanese parts, like auto gearboxes and other electronic devices which are also fitted on a lot of European cars. Sooner or later we are all going to feel the pinch.

 

I wonder if that will effect parts and labor...I sure hope not.

Then it might be a good time to sell high sun...I may certainly entertain the idea seriously if this raisies the parts and labor price too.

 

GM said it will suspend production next week at its Shreveport assembly plant in Louisiana as a result of a shortage of parts made in Japan.

 

Not necessarily, this is simply a temporary supply issue, not a permanent problem.

 

i dont think that would be a good idea considering the rate the gas prices are rising. i know if i was in the market for a car and saw cars that took premium gas rise in prices, all the more reason for me to avoid it,

 

tell you this, if you are waiting for a motor or tranny, i think that you will be out of commission for a bit...

 

^ agreed

 

The Yen was LESS THAN 80 to the buck this last weAk!

 

Aside from supply shortage, JP Yen has been steadily climbing against USD, which is bad for Japanese exporters. Their goods will have to sold at a higher USD for the same profitability. However, normally foreign companies hedge their projected sales in USD currency to avoid currency volatility. Hoping Nissan is doing that...