Car makers face production woes as quake-hit Japan suppliers struggle

VOLKSWAGEN, PSAPeugeot Citroen and other European car makers may be forced to halt production in coming weeks as component suppliers in earthquake-ravaged Japan struggle to restart factories.

The recovery to normal production levels may take months and cost the industry “billions of euro” in lost revenue, said Lars Holmqvist, head of the region’s Clepa car suppliers association.

“This will cause disruptions in Europe without question,” said Holmqvist, whose group represents more than 3,000 companies. The effect on the car makers will probably be felt in coming weeks as local supplies of Japanese parts such as semiconductors dry up, he said.