Resin shortage threatens car output

Tokyo Automakers in Japan may avoid "large-scale" disruptions to production as suppliers prepare alternative parts in response to a global resin shortage, according to a Deutsche Bank AG analyst.

Suppliers recognised that PA-12, a resin used to make brake and fuel system components, was produced by few companies and are carrying several months' supply, Takashi Moriwaki, an analyst for Frankfurt-based Deutsche Bank, wrote in a research note. Auto-parts makers could supply parts with alternative materials as soon as June and plan to propose options within the next week, Moriwaki wrote, citing interviews with companies he didn't identify.

"Although we cannot discount the risk of production stoppages because the shortage of only one component is enough to compromise auto production, our interviews suggest little likelihood of large-scale shutdowns to Japan's auto production," Moriwaki wrote.

Explosion

More than 200 executives from companies including General Motors, Volkswagen, Toyota Motor and Ford Motor met last month at a summit near Detroit to find other options for resin after a March 31 explosion at chemical maker Evonik Industries. The blast at Evonik's Marl, Germany, factory that made Cyclododecatriene, also called CDT, halved the global source of PA-12.

Automakers and suppliers are unlikely to find immediate alternatives to the shortage of resin because of their pre-production vetting processes, researcher IHS Automotive said.

Officials formed six technical committees aimed at mitigating the effect that the PA-12 shortage may have on production of parts and finished vehicles, Randi Berris, a spokeswoman for the Automotive Industry Action Group, wrote in an e-mail.