Nearly three weeks after the catastrophic
tsunami and earthquake that struck Japan on 11 March, UK vehicle
retailers are still uncertain as to the impact the disaster will
have on supply levels and prices.
The giant waves that claimed a tragic human
toll also wiped out a substantial number of the country’s vehicle
components factories, some of which are the sole worldwide
manufacturers of the parts they make.
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PSA Peugeot Citroen, for example, has lost its
source of lambda sensors, which has shut down its production of
diesel cars – many of which were destined for the UK market.
Other affected components include chips and
engine control units – short supply of these items will not only
threaten new car production, but could keep broken-down vehicles
off the road for months.
Alan Senior, head of valuations at CDL Vehicle
Information subsidiary VIPData says: “No one can say with certainty
what the effect this will have on the UK car market because the
manufacturers themselves don’t yet know how their production is
going to be affected and for how long. They know who all their
suppliers are, but the problem is they don’t know where the actual
supplies are manufactured.
“We can speculate on some possible outcomes of
all this for the UK market. If customers can’t get new cars, for
instance, then it’s very possible that used car prices will
strengthen. In particular, recently registered cars, which lately
have not been in demand, could see a significant increase in
value.
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By GlobalData“In a month or so, the manufacturers will know
how badly, or how little, their manufacturing process has been
affected.”
